USMMA Athletics Act of 2026
- Bill Number
- S. 3266
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2026-06-15: Placed on Senate Legislative Calendar under General Orders. Calendar No. 434.
- Last Updated
- 2026-06-24T18:26:24Z
AI-Generated Summary
Purpose This legislation authorizes the Secretary of Transportation to establish a government-owned nonprofit corporation to support the athletic programs of the United States Merchant Marine Academy. It aims to provide additional funding, operational flexibility, and resources for athletics through contracts, leases, asset transfers, and trademark licensing, while maintaining federal oversight.
Key Provisions
- Corporation Creation: The Secretary may form a New York nonprofit corporation under section 501(c)(3) of the Internal Revenue Code, with all stock owned by the United States and held by the Secretary. Its sole purpose is to support the Academy’s athletic programs.
- Board Structure: Directors serve without pay (except travel expenses). Department of Transportation employees may serve in an oversight role but cannot exceed one-third of the board or participate in daily operations; such authorizations must be published in the Federal Register.
- Contracts and Agreements: The Secretary may enter sole-source contracts or cooperative agreements with the corporation to support athletics, including acquiring property, services, or travel for the Academy’s direct benefit.
- Property and Support: The Secretary may lease Academy real property to the corporation for up to five years (if not immediately needed) and provide essential support services such as utilities and security.
- Asset Transfers: Nonappropriated fund assets related to athletics (excluding real property) may be transferred to the corporation.
- Acceptance of Support: The Secretary may accept funds, supplies, and services from the corporation, NCAA, athletic conferences, game guarantees, and ticketing/licensing fees, with safeguards against conflicts of interest or compromised integrity.
- Trademark Licensing: The Secretary may license Academy-related trademarks and service marks, retain fees for athletic support and recruiting, and issue implementation guidance within 180 days.
- Fund Retention: All funds received may be retained and used for athletic programs until expended.
Significant Changes to Existing Law
- Adds a new section 51329 to Chapter 513 of title 46, United States Code.
- Amends section 109(h) of title 49, United States Code, to expand trademark and service mark licensing authority for the Academy and allow retention of fees beyond basic costs.
- Creates exceptions to standard federal contracting and cooperative agreement rules (e.g., sole-source authority and direct acquisition provisions).
Potential Impacts
- Government Agencies: Provides the Department of Transportation and the Academy with greater flexibility to fund and manage athletics outside regular appropriations, while requiring oversight and conflict-of-interest protections.
- Citizens and Academy Community: May improve athletic program resources for students and athletes at the federal service academy without increasing taxpayer appropriations.
- International Relations: No direct effects identified.
Main Stakeholders Affected
- United States Merchant Marine Academy and its athletic programs.
- Department of Transportation and its employees.
- The newly authorized corporation and its board.
- National Collegiate Athletic Association, athletic conferences, and other educational institutions involved in games or licensing.
- Academy cadets, coaches, and related support staff.
Notable Legal, Constitutional, or Political Implications
- Establishes a government-controlled 501(c)(3) corporation for a federal academy, blending public ownership with nonprofit operations.
- Authorizes sole-source contracting and direct benefit acquisitions, which deviate from standard competitive procurement requirements.
- Includes explicit safeguards to preserve the appearance of fairness and integrity in Department of Transportation programs.
- Expands federal trademark licensing and fee retention authority specific to one academy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-15: Placed on Senate Legislative Calendar under General Orders. Calendar No. 434.
- 2026-06-15: Committee on Commerce, Science, and Transportation. Reported by Senator Cruz with an amendment in the nature of a substitute. With written report No. 119-126.
- 2026-06-15: Committee on Commerce, Science, and Transportation. Reported by Senator Cruz with an amendment in the nature of a substitute. With written report No. 119-126.
- 2026-02-12: Committee on Commerce, Science, and Transportation. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 2025-11-20: Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 2025-11-20: Introduced in Senate
Bill Versions
- USMMA Athletics Act of 2025 — issued 2025-11-20 — PDF (10 pages)
- USMMA Athletics Act of 2026 — issued 2026-06-15 — PDF (22 pages)