Shipping exemption for Alaska, Hawaii, Puerto Rico could cut freight costs

What it does

This bill amends federal shipping law to exempt certain routes between noncontiguous U.S. territories (Alaska, Hawaii, Puerto Rico, Guam, etc.) from the Jones Act's coastwise shipping requirements—which currently mandate that cargo moved between U.S. ports be carried on U.S.-built, U.S.-owned, U.S.-crewed vessels. The exemption applies only if fewer than three independent U.S. coastwise operators each carry at least 20% of goods on that route, meaning routes with robust domestic competition remain subject to the Jones Act. The bill benefits shippers and consumers in noncontiguous regions by allowing foreign-flagged vessels to compete on underserved routes, potentially lowering shipping costs.

Why we flagged it

The bill narrows the Jones Act's application to a specific subset of shipping routes (noncontiguous trade with limited domestic competition) rather than repealing or broadly deregulating it. It is a surgical amendment, not a wholesale deregulation or a broad carve-out.

What the text implies

• The exemption is conditional on market structure: it only applies where domestic competition is thin (fewer than three operators, each carrying <20% of volume). This creates an incentive for domestic operators to maintain market share to keep the exemption from triggering—a subtle competitive dynamic.
• Foreign shipping lines may establish service on previously underserved routes, potentially displacing or pressuring U.S. coastwise operators on those specific routes, though only where domestic capacity is already limited.
• The bill does not address whether foreign operators will actually enter these markets; exemption availability does not guarantee new service, and shipping economics may still favor domestic operators on some routes despite the legal permission.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Residents and businesses in noncontiguous U.S. territories face higher shipping costs due to the Jones Act's domestic-vessel mandate on routes with limited competition. This bill allows foreign competition on underserved routes, likely reducing freight costs and consumer prices in Alaska, Hawaii, Puerto Rico, and Guam. The exemption is narrowly tailored—it does not apply where three or more independent domestic operators already compete—preserving the Jones Act's protections where domestic capac

Who stands to gain

• Foreign-flagged shipping lines (potential new entrants to noncontiguous routes)
• Shippers and logistics companies operating on noncontiguous routes
• Consumers and businesses in Alaska, Hawaii, Puerto Rico, Guam, and other noncontiguous territories (

Named in the bill

46 USC 55101(b), 46 USC 53501, 46 USC 55108(a), Jones Act, Alaska, Hawaii, Puerto Rico, Guam, U.S. Virgin Islands, Noncontiguous trade, Coastwise qualified vessels

Where it stands

2 cosponsors: 1 Democrats, 1 Republicans.

• Jan 23, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jan 23, 2025 — Referred to House Committee on Transportation and Infrastructure · Congress.gov: “Referred to the House Committee on Transportation and Infrastructure”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 3 disclosure filings across 2 quarters, Mar 2026 to Jun 2026. Those filings disclosed $880,000 in lobbying spend. A filing names 6 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Ed Case, the sponsor, reported $489,146 in PAC receipts in the 2026 cycle.

• AFL-CIO — $760,000 on 1 filing
• Maritime Institute for Research and Industrial Development — $120,000 on 2 filings

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.