Allied Partnership and Port Modernization Act
- Sponsor
- Sen. Lee, Mike [R-UT]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Jun 11, 2026
Bottom line
This bill seeks to relax current cabotage laws to allow foreign-flagged and foreign-built dredge ships from allied nations to operate in U.S. waters, aiming to increase dredging capacity and potentially reduce costs for port modernization.
What it actually does
This bill amends Title 46, U.S. Code, to create an exception to existing cabotage laws, specifically allowing dredging operations in U.S. navigable waters by vessels documented under NATO member countries. These vessels must also be built by a NATO member or a major non-NATO ally and be majority-owned/operated by entities incorporated in a NATO member country. Additionally, it clarifies that dredged material is excluded from certain transportation requirements.
Proponents argue
Proponents would argue that this bill addresses a critical shortage of U.S.-flagged dredging vessels, which currently limits the ability to maintain and expand U.S. ports and waterways efficiently. They would assert that allowing allied vessels to operate would enhance national security by improving port infrastructure, reduce project costs, and foster stronger economic and strategic partnerships with NATO and major non-NATO allies, accelerating crucial port modernization efforts.
Opponents contend
Opponents, particularly those supporting the Jones Act, would contend that this bill undermines the U.S. maritime industry, national security, and American jobs. They would argue that relying on foreign vessels for critical infrastructure work could create vulnerabilities, reduce the incentive for domestic shipbuilding and crew training, and potentially lead to a decline in the U.S. merchant marine fleet, while also raising concerns about fair competition.
The bill is exceptionally short and straightforward, allowing for a quick and comprehensive understanding of its provisions.
Section 2(a), amending 46 U.S.C. 55109
Authorization for NATO-Affiliated Dredging Vessels
This provision creates an exception to existing U.S. cabotage laws, specifically the Jones Act, to allow certain foreign-flagged vessels to perform dredging operations in U.S. navigable waters. To qualify, a vessel must be documented under a NATO member country, built by a NATO member or major non-NATO ally, and majority-owned/operated by entities incorporated in a NATO member country.
Supporters argue
Supporters argue this provision is essential for modernizing U.S. ports and maintaining critical waterways, as the domestic dredging fleet is currently insufficient to meet growing demands. They contend that leveraging allied capabilities strengthens strategic partnerships and enhances national security by ensuring efficient maritime logistics and reducing project backlogs.
Critics contend
Opponents would argue that this provision directly undermines the Jones Act, a cornerstone of U.S. maritime policy designed to protect domestic shipbuilding, crewing, and national security. They fear it will lead to job losses for American mariners and shipyard workers, and create a dangerous precedent for further erosion of cabotage laws, weakening the U.S. maritime industrial base.
Tradeoffs
The provision balances the immediate need for increased dredging capacity and potential cost savings against the long-standing policy goal of supporting the U.S. domestic maritime industry and its associated national security benefits. It also weighs the benefits of international cooperation against concerns about economic competition and potential reliance on foreign entities for critical infrastructure.
Section 2(b), amending 46 U.S.C. 55110
Clarification on Dredged Material Transportation
This provision amends the section heading and text of 46 U.S.C. 55110 to explicitly exclude 'dredged material' from the general transportation requirements that typically apply to merchandise carried by vessels. This means that the material removed during dredging operations, even if transported within U.S. waters, would not be subject to the same cabotage restrictions as other commercial goods.
The bill extends eligibility for vessels to be built by "major non-NATO allies," as defined in 10 U.S.C. 2350a(i). This definition includes a list of countries designated by the President, such as Australia, Egypt, Israel, Japan, South Korea, and New Zealand, significantly broadening the scope beyond just NATO members.
Section 2(a)(3)(B), referencing "section 2350a(i) of title 10"
Why it matters:This is standard legislative practice for incorporating existing definitions without reprinting them. It is not intentionally evasive but does require external research for full comprehension.
Case for: Proponents would argue that including major non-NATO allies further broadens the pool of available dredging resources and shipbuilding capabilities, enhancing port modernization and strengthening strategic alliances beyond just NATO members, reflecting a more comprehensive approach to global partnerships.
Case against: Opponents might argue that expanding the scope beyond NATO members dilutes the original intent of focusing on the closest military allies and further increases competition for domestic industry without a clear corresponding national security benefit that justifies such a broad exception to cabotage laws.
Estimated impact: Significantly expands the list of potential countries whose shipbuilding industries could contribute to vessels operating in U.S. waters, beyond the 32 NATO members, potentially increasing the pool of available vessels.