The Trump administration is extending its waiver of the Jones Act, the century-old maritime law that requires cargo moving between US ports to travel on American-built, American-flagged, and American-crewed vessels. But the renewed waiver comes with a catch: its scope is being narrowed, with geographic limits and stricter shipment reviews designed to thread the needle between cheaper fuel and a domestic shipping industry that feels like it’s being thrown overboard.
The waiver, first issued for 60 days in March 2026 amid energy market disruptions tied to tensions with Iran, was subsequently extended for 90 days. That extension runs through August 16, making it the longest suspension of Jones Act protections in the law’s 106-year history.
A law from 1920 meets 2026 fuel prices
The Jones Act, formally known as the Merchant Marine Act of 1920, was designed to protect the US maritime industry and ensure national security by keeping domestic shipping routes in American hands. In practice, it means that moving oil from, say, Houston to New York requires a vessel that was built in a US shipyard, flies a US flag, and is owned by US citizens.
With national gasoline prices averaging above $4 per gallon, the administration decided that cheaper fuel trumped maritime protectionism, at least temporarily. The waiver has been used nearly 200 times by the end of July 2026.
Tighter rules, louder critics
Trade adviser Peter Navarro and OMB Director Russell Vought have both been part of deliberations over how to structure the extension, according to reports. Key Republican leaders have signaled support for limiting the waiver’s reach to protect domestic interests, even as they acknowledge the political necessity of keeping fuel costs from spiraling further.
The narrowing appears to involve geographic restrictions, potentially limiting which routes or regions qualify for waivers, and more rigorous review processes for individual shipment exemptions. States like Hawaii, which depend heavily on imported fuel and have limited access to Jones Act-compliant vessels, are likely to remain covered.
The domestic maritime industry has expressed significant opposition, arguing that sustained waivers undermine the economic case for investing in US shipbuilding. Jones Act requirements support tens of thousands of American maritime jobs, and the industry notes that only around 100 oceangoing vessels currently meet the law’s strict criteria, including merely 54 compliant oil tankers worldwide.
Energy markets and the supply chain calculus
Without the waiver, refineries on the East Coast that needed Gulf Coast crude would have been competing for a limited pool of Jones Act-compliant tankers, driving up shipping costs that would eventually be passed to consumers.
Previous administrations have granted Jones Act waivers during hurricanes and other emergencies, but those were typically measured in days, not months. A cumulative waiver period running from March through August 16, with nearly 200 individual uses, represents the longest suspension in the law’s history.
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