Technical corrections only. The Engrossed in Senate version (v3) is identical in operative text to the Reported in Senate version (v2), with only changes to legislative formatting and document metadata. No substantive policy changes were made.
USMMA Athletics Act of 2026
- Sponsor
- Sen. Wicker, Roger F. [R-MS]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Aug 10, 2026
Bottom line
This bill establishes a new non-profit corporation and grants the Secretary of Transportation broad authority to facilitate private support and management for the United States Merchant Marine Academy's athletic programs.
What it actually does
This bill authorizes the Secretary of Transportation to establish a new non-profit corporation to support the athletic programs of the United States Merchant Marine Academy (USMMA). It allows Department of Transportation (DOT) employees to serve on the corporation's board, permits sole-source contracts with the corporation, and enables the Secretary to lease USMMA property and provide support services to the corporation. Additionally, it authorizes the Secretary to accept private funds and license USMMA trademarks, retaining all proceeds for the academy's athletic programs and recruiting.
Proponents argue
Supporters argue that this bill provides essential, flexible support for USMMA athletics, enhancing the cadet experience and recruiting efforts without relying on direct federal appropriations. They contend it streamlines administrative processes and allows the academy to leverage its brand for much-needed funding.
Opponents contend
Opponents might raise concerns about potential conflicts of interest arising from Department of Transportation employees serving on the board of a private corporation that can enter into sole-source contracts. They could also question the transparency and accountability mechanisms for the new entity and the commercialization of a federal service academy's identity.
The bill is concise and clearly structured, allowing for a quick and thorough review of its provisions within a reasonable timeframe.
Sec. 2(a), adding 46 U.S.C. 51329(a)
Authority to Establish a Corporation for Athletic Support
This provision authorizes the Secretary of Transportation to establish a corporation under New York State law. This corporation, wholly owned by the United States and voted by the Secretary, is mandated to operate exclusively for charitable, educational, and civic purposes to support the athletic programs of the United States Merchant Marine Academy.
Supporters argue
Proponents argue that establishing a dedicated corporation provides a more agile and effective mechanism for securing private support and managing resources for athletic programs, reducing reliance on direct federal appropriations.
Critics contend
Opponents might contend that creating a new quasi-governmental corporation adds another layer of bureaucracy and could potentially lead to less transparent operations compared to direct federal management.
Tradeoffs
The provision balances the desire for flexible, private support with the need for federal oversight and accountability, given the corporation's U.S. ownership.
Sec. 2(a), adding 46 U.S.C. 51329(b), (c)
Nonprofit Status and DOT Employee Board Membership
This section mandates that the new corporation operate as a 501(c)(3) nonprofit organization. It also allows the Secretary of Transportation to authorize DOT employees to serve on the corporation's board of directors in their official capacities, specifically for oversight and advice, not day-to-day operations. These employees cannot hold more than one-third of the directorships, serve without compensation, and their authorization must be published in the Federal Register.
Sec. 2(a), adding 46 U.S.C. 51329(d)
Authority for Sole-Source Contracts and Property Acquisition
This provision authorizes the Secretary to enter into contracts and cooperative agreements with the new corporation to support USMMA athletic programs. Notably, it allows for sole-source contracts, overriding a general prohibition but still requiring justification under existing federal law (41 U.S.C. 3304(a)). Furthermore, cooperative agreements can be used to acquire property, services, or travel directly for the benefit or use of the USMMA, bypassing certain federal acquisition rules.
Sec. 2(a), adding 46 U.S.C. 51329(e), (f)
Leasing Real Property and Providing Support Services
This provision allows the Secretary, in consultation with the Administrator of General Services, to rent or lease real property at the USMMA to the corporation for up to five years, provided the property is not immediately required by the academy. All proceeds from such leases must be retained and used for athletic programs. Additionally, the Secretary may provide essential support services (like utilities, office equipment, security) to the corporation while it conducts activities at the academy, with no liability incurred by the United States.
Sec. 2(a), adding 46 U.S.C. 51329(h), (j)
Acceptance of Support and Fund Retention
This provision authorizes the Secretary to accept funds, supplies, and services from the new corporation and other external sources (such as the National Collegiate Athletic Association, athletic conferences, game guarantees, and ticketing/licensing fees) for the support of USMMA athletic programs. Crucially, these funds can be retained by the Secretary and remain available until expended, providing a stable and flexible funding source. The provision includes a limitation that such contributions and expenditures must not compromise the integrity or appearance of integrity of the Department of Transportation or its employees.
Sec. 2(a), adding 46 U.S.C. 51329(i) and Sec. 2(c), amending 49 U.S.C. 109(h)
Licensing of USMMA Trademarks and Service Marks
This provision grants two distinct authorities related to USMMA trademarks. First, it allows the new corporation, with Secretary approval, to enter into licensing, marketing, and sponsorship agreements for USMMA trademarks and service marks. Second, it directly authorizes the Secretary to license these marks, retain the fees, and use them first for licensing program costs and then for USMMA athletic programs and recruiting, with funds available until expended. Both authorities include limitations to prevent actions that would compromise the integrity of DOT or its programs.
This provision states that while contracts with the new corporation may be sole-source, this is 'notwithstanding section 3105 of title 41, United States Code, subject to section 3304(a) of such title.' This means that the general prohibition on sole-source contracts (41 U.S.C. 3105) is waived, but the specific conditions for *exceptions* to full and open competition (e.g., only one responsible source, unusual and compelling urgency) as outlined in 41 U.S.C. 3304(a) still apply.
Sec. 2(a), 46 U.S.C. 51329(d)(2)
Why it matters:This is standard legislative practice for referencing and modifying existing legal frameworks, ensuring that new authorities operate within a broader, established legal context rather than being entirely unconstrained.
Case for: Supporters would argue that this ensures that even with sole-source authority, there must be a justifiable reason as defined by existing law, preventing arbitrary sole-source awards and maintaining a degree of accountability.
Case against: Critics might argue that while not a blanket waiver, it still allows for sole-source contracts, which can be less transparent and competitive than full and open competition, potentially leading to less favorable terms for the government.
Estimated impact: Potentially impacts the efficiency and cost-effectiveness of contracts related to USMMA athletics, depending on how frequently and under what circumstances sole-source justification is used. It ensures that any sole-source award must still meet a specific legal threshold.
This provision authorizes the Secretary of Transportation to transfer all title and ownership of assets and liabilities from existing Department of Transportation nonappropriated fund instrumentalities that support USMMA athletics to the new corporation. This includes bank accounts, financial reserves, equipment, supplies, and other personal property, but explicitly excludes any interest in real property.
Sec. 2(a), 46 U.S.C. 51329(g)
Why it matters:This is standard administrative practice for transitioning existing operational structures and assets to a new legal entity, ensuring continuity of operations and proper accounting of resources.
Case for: Supporters would argue that this ensures a smooth and efficient transition of existing resources and financial operations to the new corporation, allowing it to begin supporting USMMA athletics immediately without disruption.
Case against: Critics might note that transferring existing liabilities to the new corporation could require careful due diligence to ensure the corporation is not unduly burdened, though this is a standard part of such transitions.
Estimated impact: Facilitates the operational continuity of USMMA athletic support by consolidating existing nonappropriated fund assets under the new corporation, potentially involving significant financial assets and equipment.