Congress mandates U.S. ships for all federal cargo—raising costs for taxpayers.
H.R. 2035 — American Cargo for American Ships Act · Filed by Salud Carbajal (D-CA) · 1 cosponsor · Introduced Mar 11, 2025 · Passed chamber
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What it does
This bill amends federal maritime law to require the Department of Transportation to ensure that 100% of cargo it procures, finances, or arranges be transported on privately-owned U.S. commercial vessels, provided those vessels are available at fair and reasonable rates. The requirement applies separately to dry bulk carriers, dry cargo liners, and tankers, and aims to guarantee U.S. shipping companies a fair share of government-financed cargo by geographic region.
Why we flagged it
The bill's operative mechanism is a direct mandate requiring government-financed cargo to move exclusively on U.S. private vessels. This is a classic protectionist measure designed to shield a domestic industry (U.S. maritime shipping) from foreign competition by leveraging government procurement power.
What the text implies
- DOT projects (infrastructure, disaster relief, equipment transport) may face delays if U.S. vessel capacity is insufficient or rates exceed fair-market levels, creating a potential bottleneck in federal logistics.
- The 'fair and reasonable rates' standard is undefined and may become a litigation flashpoint between DOT, shipping companies, and project sponsors over what constitutes compliance.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. maritime shipping companies (privately-owned commercial vessel operators); U.S. shipping workers and port labor unions; Domestic shipbuilding and vessel maintenance contractors