Is the Jones Act Still in Effect? Requirements, Waivers, and Penalties

Yes, the Jones Act is still in effect. It has been continuously on the books since 1920 and now lives primarily at 46 U.S.C. § 55102 (coastwise cargo trade) and 46 U.S.C. § 30104 (seaman injury claims). Any vessel carrying merchandise between two U.S. points must meet its requirements, or face cargo forfeiture and penalties that can run into the millions.

Why It Hasn’t Been Repealed

The Jones Act is a permanent statute in the United States Code, not an agency rule that can be quietly withdrawn. Congress declared in 46 U.S.C. § 50101 that maintaining a merchant marine built, owned, and crewed by U.S. citizens is “necessary for the national defense and the development of the domestic and foreign commerce of the United States.”¹ That policy statement anchors the trade restrictions that follow.

Repeal bills come and go. The most recent is the Open America’s Waters Act, introduced in the 119th Congress (2025–2026), which would eliminate the coastwise trade restrictions entirely.² Similar bills have been introduced for decades, typically citing higher shipping costs for island communities like Hawaii and Puerto Rico. None have advanced to a floor vote. Shipbuilding, maritime labor, and defense interests have consistently blocked legislative change.

Because it is a statute, no president can repeal it by executive order. Any permanent change requires legislation passing both chambers of Congress and surviving a presidential veto.

The Four Requirements for Coastwise Trade

A vessel moving merchandise between two U.S. points by water must satisfy all four requirements below. Fail any one, and the vessel is ineligible.³

Built in the United States

To receive a coastwise endorsement, a vessel must have been constructed in the United States.⁴ Narrow exceptions cover vessels captured in wartime, forfeited for violating U.S. law, or salvaged as wrecks. That build requirement is a major reason the Jones Act-eligible fleet is small — roughly 90 to 100 large vessels by recent counts — because U.S. shipyard capacity is limited and construction costs run higher than foreign yards.

Major work abroad can also cost a vessel its privileges permanently. Under 46 U.S.C. § 12132, a coastwise-eligible vessel rebuilt outside the United States may never re-enter coastwise trade.⁵ The Coast Guard applies both a quantitative steel-weight test and a qualitative major-component test, with a threshold as low as 7.5 to 10 percent of hull or superstructure steel weight.

Owned by U.S. Citizens

The vessel must be wholly owned by U.S. citizens for coastwise purposes. For corporations, at least 75 percent of the ownership interest must be held by U.S. citizens, the company must be incorporated under federal or state law, and both the CEO and board chairman must be citizens. No more than a minority of the directors needed for a quorum can be non-citizens.⁶

Documented Under U.S. Law

Every vessel in coastwise trade must carry a certificate of documentation with a coastwise endorsement issued under Chapter 121 of Title 46. Flagging subjects the ship to U.S. safety standards, inspection protocols, and environmental regulations. A vessel over 200 gross tons sold to foreign owners or placed under a foreign registry loses its coastwise privileges permanently.⁵

Crewed by U.S. Citizens or Permanent Residents

All officers — master, chief engineer, radio officer, and every watch officer — must be U.S. citizens. Among unlicensed crew, no more than 25 percent may be lawful permanent residents; the remaining 75 percent must be citizens.⁷

Where the Law Reaches

Under 46 U.S.C. § 55101, the coastwise laws cover the United States and its island territories and possessions.⁸ That takes in Hawaii, Puerto Rico, Guam, and Alaska. Cargo shipped from any other U.S. port to those places must move on a Jones Act-compliant vessel.

The reach extends offshore. Under the Outer Continental Shelf Lands Act, federal law covers artificial islands, platforms, and installations attached to the seabed of the outer continental shelf for exploring or producing resources.⁹ CBP treats oil rigs, drilling platforms, and floating warehouse vessels supplying those rigs as coastwise points, so a supply boat running pipe from a Gulf Coast dock to an offshore platform must be Jones Act-compliant.¹⁰

Offshore wind is now inside the same framework. After a 2021 amendment, installations attached to the seabed for producing non-mineral energy like wind power are also coastwise points. CBP has determined that a jack-up vessel becomes a coastwise point once it attaches to the seabed to install a turbine, and the turbine itself becomes one, even before construction is finished.¹⁰

Territories Outside the Coastwise Laws

Three U.S. territories sit outside the Jones Act’s cargo restrictions. American Samoa, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands are exempt.⁸ Foreign-flagged vessels can carry goods to and from those territories without penalty. The CNMI exemption does not cover U.S. government cargo or government contractors, which still require compliant vessels.¹⁰

Guam sits in the middle. The coastwise laws technically apply, but a vessel with a registry endorsement — rather than the stricter coastwise endorsement — may trade with Guam, effectively relaxing the U.S.-build requirement while keeping the other protections in place.

A separate statute, the Passenger Vessel Services Act at 46 U.S.C. § 55103, applies a parallel restriction to passengers rather than cargo.¹¹ If your question is about cruise ships stopping at foreign ports, that’s the PVSA, not the Jones Act.

Penalties for Violations

Under 46 U.S.C. § 55102(c), merchandise transported in violation of the coastwise laws is subject to seizure and forfeiture. As an alternative, CBP can recover the greater of the merchandise’s value or the actual cost of transportation from anyone responsible for the shipment. For a large cargo shipment, that runs into the millions of dollars.

CBP handles day-to-day enforcement, monitoring vessel movements and cargo manifests to verify compliance.¹² Companies must regularly show that their vessels meet the citizenship, construction, and documentation requirements. The agency audits the domestic shipping industry actively, not only on complaint.

Emergency Waivers

The federal government can temporarily suspend the coastwise laws in emergencies. Under 46 U.S.C. § 501, waivers may be granted two ways: the Secretary of Defense can request one to address an immediate adverse effect on military operations, or the President can determine that a waiver is necessary in the interest of national defense and authorize the head of the responsible agency to issue one.¹³ CBP processes the waivers because it administers the navigation laws.

Waivers are narrow and short-lived. A foreign-flagged tanker might get a time-limited permit to deliver fuel after a hurricane. The most recent waiver before 2026 was issued in October 2022 for a tanker heading to Puerto Rico with supplies after Hurricane Fiona. Once the emergency passes, standard requirements return immediately. Private companies can submit waiver requests to CBP by email at JonesActWaiverRequest@cbp.dhs.gov, and each request must include a detailed cargo description, the specific foreign-flagged vessel proposed, loading and delivery dates, and a statement explaining why no coastwise-qualified vessel is available and why the waiver serves national defense interests.¹⁴

Injury Protections for Seamen

The other half of the Jones Act protects maritime workers. Under 46 U.S.C. § 30104, a seaman injured during employment may bring a negligence lawsuit against their employer with the right to a jury trial.¹⁵ If the seaman dies of the injury, their personal representative can file the claim. The statute borrows the legal framework that governs railroad employee injury cases, which is generally more favorable to workers than standard workers’ compensation.

Separately, general maritime law imposes a no-fault duty called “maintenance and cure.” When a seaman is injured or becomes ill while serving the vessel, the employer must pay daily living expenses (maintenance) and cover necessary medical treatment (cure) regardless of fault, including hospitalization, surgery, physical therapy, and medications. An injured seaman can pursue both a Jones Act negligence claim and maintenance and cure at the same time; they are distinct remedies.

One recent narrowing: the statute now excludes aquaculture workers from the definition of “seaman” if state workers’ compensation is available and they were engaged in aquaculture at the time of injury.¹⁵ Workers at fish farms and shellfish operations who would previously have qualified as seamen are now channeled into their state’s workers’ comp system.

1
Office of the Law Revision Counsel. 46 USC 50101 – Objectives and Policy
2
Congress.gov. H.R. 3940 – Open Americas Waters Act
3
Office of the Law Revision Counsel. 46 USC 55102 – Transportation of Merchandise
4
Office of the Law Revision Counsel. 46 USC 12112 – Coastwise Endorsement
5
Office of the Law Revision Counsel. 46 USC 12132 – Loss of Coastwise Trade Privileges
6
Office of the Law Revision Counsel. 46 USC 50501 – Entities Deemed Citizens of the United States
7
Office of the Law Revision Counsel. 46 USC 8103 – Citizenship and Navy Reserve Requirements
8
Office of the Law Revision Counsel. 46 USC 55101 – Application of Coastwise Laws
9
Office of the Law Revision Counsel. 43 USC 1333 – Laws and Regulations Governing Lands
10
U.S. Customs and Border Protection. The Jones Act
11
U.S. Customs and Border Protection. The Jones Act and The Passenger Vessel Services Act
12
Maritime Administration. Domestic Shipping
13
Office of the Law Revision Counsel. 46 USC 501 – Waiver of Navigation and Vessel-Inspection Laws
14
U.S. Customs and Border Protection. Requests to Waive the Navigation Laws
15
Office of the Law Revision Counsel. 46 USC 30104 – Personal Injury to or Death of Seamen