USMMA Athletics Act of 2026
- Sponsor
- Rep. Garbarino, Andrew R. [R-NY-2]
- Committees
- Armed Services Committee (primary)
- Last action
- Jan 7, 2026
Bottom line
The bill creates a new, flexible funding and operational structure for USMMA athletics, aiming to enhance support through private and commercial revenue streams.
What it actually does
This bill authorizes the Secretary of Transportation to establish a 501(c)(3) nonprofit corporation in New York to support the athletic programs of the United States Merchant Marine Academy (USMMA). It grants the corporation authority to enter into contracts, leases, and licensing agreements for USMMA trademarks, and allows the Secretary to accept funds and services from the corporation and other external sources for athletic programs. It also amends existing law to explicitly allow the Secretary to license USMMA trademarks and retain fees for program support and recruiting.
Proponents argue
Proponents argue this bill will provide much-needed financial flexibility and stability for the United States Merchant Marine Academy's athletic programs, allowing them to better compete and offer a robust experience for midshipmen. They contend that establishing a dedicated nonprofit corporation, coupled with expanded licensing and fundraising capabilities, will reduce reliance on federal appropriations and tap into new revenue sources, ultimately benefiting the Academy's overall mission and cadet welfare.
Opponents contend
Opponents might raise concerns about the potential for commercialization of a federal institution and the appropriate balance between revenue generation and the Academy's core educational and military mission. They could argue that allowing sole-source contracts and broad acceptance of external funds, even with oversight, might introduce risks of conflicts of interest or reduce transparency in procurement and financial management for a government-affiliated entity.
The bill is short and clearly written, making it accessible for a quick read and easy to understand its core provisions.
Section 2(a), (b), (c)
Establishment and Governance of USMMA Athletic Support Corporation
This provision authorizes the Secretary of Transportation to create a new nonprofit corporation under New York State law, specifically designated as a 501(c)(3) tax-exempt organization. This corporation's sole purpose is to support the athletic programs of the United States Merchant Marine Academy. Its board members will serve without pay, and Department of Transportation employees can serve on the board in an oversight capacity, but cannot constitute more than one-third of the directorships, ensuring a balance of private and governmental involvement.
Supporters argue
Supporters argue that a dedicated nonprofit corporation provides the agility and fundraising capacity necessary to effectively support USMMA athletics, which often face unique challenges within a federal academy structure. They believe the 501(c)(3) status will attract more donations, and the board structure ensures appropriate oversight while leveraging private sector expertise.
Critics contend
Critics might express concern that creating a separate corporation, even with DOT oversight, could lead to a diffusion of accountability or create a perception of a two-tiered system for funding federal institutions. They may also question the necessity of a new entity versus enhancing existing federal mechanisms.
Tradeoffs
This provision balances the need for operational flexibility and enhanced fundraising with the imperative for federal oversight and accountability for an entity supporting a government academy. The tension lies in ensuring the corporation remains aligned with federal objectives while operating independently enough to be effective.
Section 2(d), (e), (f)
Flexible Contracting, Leasing, and Support Services
This section allows the Secretary of Transportation to enter into contracts and cooperative agreements with the new corporation, including sole-source contracts under certain conditions, and permits cooperative agreements to acquire property or services directly for USMMA athletics. It also authorizes the Secretary to lease real property at the Academy to the corporation for up to five years, with proceeds retained for athletics, and to provide essential support services like utilities and equipment to the corporation, without incurring liability for the U.S. government.
Section 2(h), (i), (j), (k)
Expanded Funding Sources and Trademark Licensing
This set of provisions significantly broadens the funding streams for USMMA athletic programs. It allows the Secretary to accept funds, supplies, and services from the new corporation, as well as directly from external sources like the NCAA, athletic conferences, game guarantees, and ticketing/licensing fees. Crucially, it authorizes the corporation to enter into licensing, marketing, and sponsorship agreements for USMMA trademarks (with Secretary approval) and amends federal law (49 U.S.C. 109(h)) to explicitly allow the Secretary to license USMMA trademarks and retain the fees for program support and recruiting. All funds received by the Secretary under these provisions can be retained and used for athletic programs until expended.
Allows the corporation to enter into sole-source contracts (notwithstanding 41 U.S.C. 3105, subject to 3304(a)) and use cooperative agreements to acquire property, services, or travel for the direct benefit of USMMA (notwithstanding 31 U.S.C. Chapter 63).
Section 2(d)(2) and (3)
Why it matters:These are technical deviations from standard federal procurement practices, often placed in specific sections to grant flexibility. While explicitly stated, the implications of these waivers might not be immediately apparent to a non-specialist reader.
Case for: Proponents argue these waivers are necessary to provide the corporation with the agility and efficiency needed to support USMMA athletic programs effectively, bypassing potentially slow and cumbersome federal procurement processes for specialized needs.
Case against: Critics might argue that these waivers could reduce transparency and competition in contracting, potentially leading to less favorable terms for the government or creating opportunities for favoritism, even with the stated limitations.
Estimated impact: Could significantly streamline procurement for USMMA athletic programs, potentially accelerating project timelines and reducing administrative overhead, but also carries the risk of reduced cost-effectiveness if not managed carefully.
Amends Section 109(h) of title 49, United States Code, to explicitly grant the Secretary of Transportation authority to license USMMA trademarks and service marks, retain fees, and use those fees for licensing program costs and, if excess, for USMMA recruiting activities.
Section 2(k)
Why it matters:This is standard legislative drafting practice for amending existing law. It's not necessarily evasive, but its placement means its significance as a direct federal revenue-generating authority might be missed compared to the corporation's role.
Case for: Supporters argue this amendment provides clear, statutory authority for the Secretary to leverage USMMA's intellectual property, ensuring a direct and sustainable funding stream for the Academy's athletic programs and crucial recruiting efforts, independent of the new corporation.
Case against: Critics might argue that expanding the Secretary's direct commercial licensing authority could lead to a more extensive commercial footprint for the federal government, potentially raising questions about the appropriate scope of federal agency activities.
Estimated impact: Creates a direct, federally managed revenue stream for USMMA athletics and recruiting, potentially generating significant funds depending on the marketability of USMMA trademarks.