American Cargo for American Ships Act
- Bill Number
- H.R. 2035
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Transportation and Public Works
- Status
- Passed House
- Latest Action
- 2025-06-10: Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Last Updated
- 2026-07-10T19:08:26Z
AI-Generated Summary
Purpose
The "American Cargo for American Ships Act" (H.R. 2035) aims to strengthen U.S. maritime policy by requiring that equipment, materials, or commodities procured, furnished, or financed by the Department of Transportation (DOT) be transported primarily on U.S.-owned commercial ships. This builds on existing "cargo preference" laws, which prioritize American vessels for government-related shipments to support the domestic shipping industry.
Key Provisions
- Amendment to Existing Law: The bill modifies Section 55305 of Title 46, United States Code (part of the Cargo Preference Act), which generally requires at least 50% of U.S. government-impelled ocean cargoes to be carried on U.S.-flag vessels.
- New Exception for DOT: A new subsection (c) mandates that when DOT procures, contracts for, or finances (using federal funds) equipment, materials, or commodities for its own use, the Secretary of Transportation (or financing recipient) must ensure 100% of the gross tonnage—a measure of a ship's cargo-carrying capacity—is transported on privately owned U.S. commercial vessels.
- This applies separately to dry bulk carriers (ships for unpackaged goods like grain), dry cargo liners (ships for containerized or bagged goods), and tankers (ships for liquids like oil).
- The 100% requirement is only to the extent such vessels are available at "fair and reasonable rates" comparable to U.S. commercial ships.
- It must promote "fair and reasonable participation" of U.S. vessels across different geographic areas.
- Structural Changes: The bill updates subsection (a) to reference the new exception and renumbers existing subsections (c) through (f) as (d) through (g).
Significant Changes to Existing Law
- Under current law, the 50% U.S.-flag requirement applies broadly to government cargoes but has exceptions and does not specifically mandate 100% for DOT's internal procurements or financings.
- This bill eliminates loopholes for DOT by imposing a stricter 100% target for its activities, while tying it to the procedures in subsection (b) (the general 50% rule). This shifts DOT from potential exemptions to full compliance, potentially closing gaps where DOT cargoes previously used foreign vessels.
Potential Impacts
- On Government Agencies: DOT will face higher administrative burdens to verify vessel availability and rates, possibly increasing procurement costs due to reliance on U.S. ships (which are often more expensive than foreign alternatives). Other agencies may see indirect effects if DOT's policies influence broader federal shipping practices.
- On Citizens: U.S. taxpayers could experience modest cost increases for DOT-funded projects (e.g., infrastructure or equipment transport), but it supports domestic jobs in shipping and related industries.
- On International Relations: May strain trade ties with countries whose vessels lose access to DOT cargoes, potentially leading to reciprocal restrictions on U.S. ships abroad. It reinforces U.S. protectionism in maritime transport, aligning with efforts to bolster national security in supply chains.
Main Stakeholders Affected
- U.S. Shipping Industry: Primary beneficiaries, including owners and operators of U.S.-flag commercial vessels, who gain guaranteed access to DOT cargoes and potential revenue growth.
- Department of Transportation: Directly responsible for implementation, including the Secretary's oversight of compliance.
- Federal Financing Recipients: Entities receiving DOT loans or credits (e.g., contractors or ports) must adhere to the rules.
- Foreign Shipping Companies: Adversely affected by reduced opportunities to carry DOT-related cargoes.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the Cargo Preference Act without creating new enforcement mechanisms, but the 100% mandate could invite lawsuits if "fair and reasonable rates" are disputed (e.g., challenges over availability or cost definitions). It aligns with federal authority over commerce under the Constitution's Commerce Clause.
- Constitutional: No direct conflicts, as it promotes domestic industry under Congress's power to regulate interstate and foreign commerce (Article I, Section 8).
- Political: Highlights ongoing debates over protectionism versus free trade; supporters view it as vital for national security and jobs, while critics may argue it raises costs and limits competition. As a referred bill (passed House on June 9, 2025; Senate referral on June 10, 2025), it signals bipartisan interest in maritime policy but faces Senate hurdles.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Carbajal, Salud O. [D-CA-24]
Cosponsors (1)
Recent Actions
- 2025-06-10: Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2025-06-09: Motion to reconsider laid on the table Agreed to without objection.
- 2025-06-09: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 373 - 14 (Roll no. 157). (text: CR H2546-2547) (Roll call 157)
- 2025-06-09: Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 373 - 14 (Roll no. 157). (text: CR H2546-2547) (Roll call 157)
- 2025-06-09: Considered as unfinished business. (consideration: CR H2557-2558)
- 2025-06-09: At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
- 2025-06-09: DEBATE - The House proceeded with forty minutes of debate on H.R. 2035.
- 2025-06-09: Considered under suspension of the rules. (consideration: CR H2546-2547)
- 2025-06-09: Mr. Ezell moved to suspend the rules and pass the bill.
- 2025-06-06: Placed on the Union Calendar, Calendar No. 116.
- 2025-06-06: Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-147.
- 2025-06-06: Reported by the Committee on Transportation and Infrastructure. H. Rept. 119-147.
- 2025-04-02: Ordered to be Reported by Voice Vote.
- 2025-04-02: Committee Consideration and Mark-up Session Held
- 2025-04-02: Subcommittee on Coast Guard and Maritime Transportation Discharged
Bill Versions
- American Cargo for American Ships Act — issued 2025-06-09 — PDF (4 pages)
- American Cargo for American Ships Act — issued 2025-03-11 — PDF (3 pages)
- American Cargo for American Ships Act — issued 2025-06-10 — PDF (3 pages)
- American Cargo for American Ships Act — issued 2025-06-06 — PDF (6 pages)