The White House is weighing whether to extend waivers to the Jones Act that permit foreign-flagged vessels to transport goods between U.S. ports, according to two people familiar with internal discussions. The deliberations have been prompted by a recent uptick in violence between the U.S. and Iran that has raised concerns about energy prices and potential supply disruptions.
Officials are evaluating the merits of a further extension that could include geographic restrictions - limiting the specific regions where foreign ships could operate between domestic ports - as a way to preserve the administration's tool for easing supply pressures while responding to criticism from maritime industry groups and Republican allies.
Senior leaders from the White House met earlier this week with the heads of the Energy, Transportation and Interior departments to discuss options, the sources said, with a possible decision expected before the end of July. The current waiver does not expire until August 16, and no final determination has been made.
The waiver has been one of several measures the administration has used to try to temper oil prices, with domestic crude trading at about $80 a barrel. The White House has also released oil from the Strategic Petroleum Reserve, which the administration reports is at its lowest level since 1983.
A White House official said: "President Trump’s decisive action to waive the Jones Act has helped prevent supply chain shortages across the country. The administration is regularly monitoring how the waiver is being used." The official also noted that a decision on a third extension has not yet been taken, and reiterated that the current waiver runs through August 16.
The Jones Act is a century-old statute that requires goods moved between U.S. ports to be carried on vessels that are American-built, owned and crewed. The waiver was implemented to ease supply constraints and reduce energy costs by enabling a broader pool of ships to move commodities along U.S. coasts and between domestic ports.
Critics contend the measure undermines the U.S. maritime industry. Maritime groups and some Republican lawmakers argue the waiver weakens domestic shipbuilding and national security. The criticism has intensified among some Republicans, including House Speaker Mike Johnson, who urged the administration earlier this month to end the waiver on the grounds that it harms the U.S. maritime sector.
The Trump administration first granted the Jones Act waiver on March 17, allowing foreign-flagged vessels to move commodities including oil, fuel and fertilizer between U.S. ports. The administration subsequently extended the waiver through August 16. A third extension, potentially with geographic limitations, is under consideration as renewed conflict and skirmishes between the U.S. and Iran have coincided with higher prices.
Supporters within the White House maintain the waiver has expanded shipping capacity and facilitated the movement of supplies between U.S. ports. Opponents dispute that assessment and warn the temporary relief could have longer-term negative consequences for domestic shipbuilders and American crews.
Summary of developments
- The White House is considering another Jones Act waiver extension amid Iran-related price and supply concerns.
- Officials have discussed imposing geographic restrictions on any new waiver to limit where foreign-flagged vessels may operate between U.S. ports.
- The waiver, first granted on March 17 and extended through August 16, has generated pushback from maritime groups and some Republican lawmakers, including House Speaker Mike Johnson.