4 versions

CosmeticWhat changed in REFERRED IN SENATEcompared with ENGROSSED IN HOUSE (Jun 9, 2025)

Technical corrections only. The text of H.R. 2035 in v4 is identical to v3, with changes limited to updated legislative status information reflecting its referral to the Senate. No substantive policy changes were made between these versions.

H.R. 2035119th CongressIntroduced Mar 11, 2025

American Cargo for American Ships Act

Passed HouseTransportation and Public WorksSubstantive

View bill text

Sponsor: Rep. Carbajal, Salud O. [D-CA-24]
Committees: Commerce, Science, and Transportation Committee (primary)
Last action: Jun 10, 2025

Bottom line

The bill expands existing cargo preference laws to require the Department of Transportation to use only U.S.-flagged commercial vessels for all its ocean cargo, prioritizing domestic maritime industry support.

What it actually does

This bill amends title 46, United States Code, specifically Section 55305, to mandate that 100 percent of all ocean-borne cargo procured, furnished, or financed by the Department of Transportation (DOT) must be transported on privately-owned commercial vessels of the United States. This requirement applies provided that U.S. vessels are available at fair and reasonable rates, aiming to ensure fair participation of these vessels across geographic areas.

Proponents argue

Supporters argue that this bill strengthens the U.S. merchant marine, which is vital for national security and economic independence. They contend it will create and sustain American jobs in the maritime sector, ensure federal funds support domestic industries, and maintain a robust shipping capacity for both commercial and defense needs.

Opponents contend

Critics may contend that mandating 100% U.S. vessel usage could lead to increased transportation costs for Department of Transportation projects due to potentially less competitive rates or limited availability of U.S. vessels for specific routes or cargo types. This could result in project delays or higher expenditures for taxpayers, potentially reducing efficiency in federal operations.

The bill is very short and clearly written, making it highly accessible for a quick and comprehensive understanding of its provisions.

Section 2

Expansion of Cargo Preference for Department of Transportation

prominently featuredstraightforward

This section amends existing law (46 U.S.C. 55305) to specifically mandate that 100 percent of all ocean-borne cargo procured, furnished, or financed by the Department of Transportation (DOT) must be transported on privately-owned commercial vessels of the United States. This requirement applies if U.S. vessels are available at fair and reasonable rates, ensuring a fair participation of these vessels across geographic areas, and explicitly carves out this new requirement as an exception to the general cargo preference rules.

GroupImpactMechanismScale

GroupU.S. maritime shipping companies and their employeesImpactIncreased demand for services, potential for more contracts and job securityMechanismMandatory use of U.S. vessels for DOT cargoesScaleSignificant for the U.S. maritime sector

GroupDepartment of Transportation (DOT)ImpactPotential for increased shipping costs and logistical challengesMechanismRestriction on vessel choice, requiring adherence to U.S.-flagged vesselsScaleModerate impact on budget and operational flexibility

GroupForeign shipping companiesImpactReduced access to DOT-related cargo contractsMechanismExclusion from DOT-financed or procured cargo transportScaleMinor to moderate, depending on previous involvement

GroupU.S. taxpayersImpactPotential for higher costs for federal projects involving ocean transportMechanismIncreased expenditures by DOT passed on through federal budgetScalePotentially minor, depending on cost differentials

Supporters argue

Proponents argue this provision is essential for bolstering the U.S. merchant marine, which is a critical component of national defense and economic security. They assert it will create a stable demand for U.S. vessels, fostering investment in the domestic shipping industry and ensuring a skilled workforce is available.

Critics contend

Opponents might argue that while the intent is laudable, this provision could lead to inefficiencies and higher costs. They may point out that U.S.-flagged vessels can sometimes be more expensive or less available for certain routes compared to international options, potentially burdening DOT's budget and delaying projects.

Tradeoffs

The provision balances the strategic national interest of supporting a domestic maritime industry against the economic considerations of cost-efficiency and logistical flexibility for federal agencies. It prioritizes national security and domestic job creation over potentially lower international shipping rates.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.