Port Modernization and Supply Chain Protection Act
- Sponsor
- Sen. Lee, Mike [R-UT]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Jun 11, 2026
Bottom line
The bill aims to reduce port dredging costs and improve supply chain efficiency by eliminating long-standing protectionist laws that restrict U.S. dredging to domestic vessels.
What it actually does
This bill repeals Section 55109 of title 46, United States Code, which is commonly known as the Foreign Dredge Act of 1906. This Act currently restricts dredging operations in U.S. navigable waters to vessels that are U.S.-built, U.S.-owned, and U.S.-crewed. The bill also amends Section 55110 of title 46 to exclude dredged material from certain transportation requirements, further opening the domestic dredging market to foreign competition.
Proponents argue
Proponents argue that repealing the Foreign Dredge Act will increase competition in the dredging market, significantly lower costs for essential port maintenance and expansion projects, and alleviate supply chain bottlenecks by allowing access to a larger, more efficient global fleet of dredging vessels. They contend this modernization is crucial for U.S. economic competitiveness and infrastructure development.
Opponents contend
Opponents, primarily the U.S. maritime industry and labor unions, argue that repealing the Act would undermine national security by making the U.S. reliant on foreign entities for critical port infrastructure. They also contend it would lead to substantial job losses for American mariners, weaken the domestic shipbuilding and dredging industries, and potentially compromise environmental and safety standards.
The bill text is exceptionally brief and easy to read, requiring less than a minute. However, its policy implications are profound and complex, demanding significant background knowledge to fully grasp the potential economic, national security, and labor impacts.
Section 2(a)
Repeal of Foreign Dredge Act of 1906
This provision eliminates the legal requirement that only vessels built in the U.S., owned by U.S. citizens, and crewed by U.S. citizens can perform dredging operations in U.S. navigable waters. By repealing Section 55109 of title 46, United States Code, the bill effectively opens the U.S. domestic dredging market to foreign-flagged and foreign-owned vessels, allowing them to compete for contracts previously reserved for U.S. entities.
Supporters argue
Supporters argue that repealing this outdated protectionist law will foster competition, drive down the high costs of dredging, and allow U.S. ports to modernize and expand more quickly, ultimately benefiting the entire supply chain and consumers by making U.S. trade more competitive.
Critics contend
Opponents contend that this repeal would devastate the domestic dredging industry, lead to job losses for American workers, and compromise national security by making the U.S. reliant on foreign entities for critical infrastructure maintenance and disaster response capabilities.
Tradeoffs
This provision navigates the tension between achieving economic benefits through increased competition and lower costs for critical port infrastructure, versus maintaining national security and protecting the domestic maritime industry and its workforce.
Section 2(b)
Exclusion of Dredged Material from Transportation Requirements
This provision amends Section 55110 of title 46, United States Code, which generally mandates that certain waterborne transportation within U.S. waters be carried out by U.S.-flagged vessels. By striking 'or dredged material' from this section, the bill clarifies that the transportation of dredged material is no longer subject to these specific U.S.-flag vessel requirements. This change aligns with the broader repeal of the Foreign Dredge Act, ensuring that foreign dredges can not only operate but also transport the material they dredge without additional regulatory hurdles.