Sponsors
The bill expands which vessels can obtain coastwise endorsements and reduces some administrative burdens—creating new economic opportunities—while raising competition pressures, potential security risks, and near-term compliance costs until the Coast Guard issues implementing rules.
Owners/operators of coastwise-eligible vessels (including many small businesses and crewed passenger/tour operators) would gain broader access to U.S. coastwise trade because endorsements may be issued for any vessel that qualifies under U.S. law.
The Coast Guard must issue safety and security regulations within 90 days, which should quickly clarify standards and improve maritime safety for crews and passengers.
Removing the loss-of-privileges provision and related references reduces paperwork and administrative barriers, lowering compliance burdens for vessel operators.
Existing U.S.-flag operators (many small coastal businesses and passenger/tour operators) could face increased competition that reduces their market share and revenues as more vessels become eligible for coastwise endorsements.
Expanding the pool of vessels eligible for coastwise trade could raise national security and supply-chain risks if vetting and enforcement are insufficient—at least until the Coast Guard’s new rules are in place and proven effective.
Regulated entities may incur new compliance costs to meet the Coast Guard’s forthcoming safety and security requirements, including possible retrofits or operational changes that are costly for small operators and some utilities/energy companies.
Based on analysis of 2 sections of legislative text.
Broadens eligibility for coastwise endorsements in title 46, repeals a related statutory provision, and requires the Coast Guard to issue safety/security regulations within 90 days.
Introduced June 12, 2025 by Tom McClintock · Last progress June 12, 2025
Revises federal coastwise endorsement rules in title 46 of the U.S. Code to broaden which vessels may receive coastwise endorsements, removes a related statutory restriction, and requires the U.S. Coast Guard to adopt safety and security regulations for those vessels within 90 days of enactment. The act also makes conforming statutory edits and repeals an existing provision in chapter 121 of title 46. The changes expand eligibility for coastwise trade, shift rulemaking responsibility to the Coast Guard with a short regulatory timeline, and alter multiple cross-references in the code; they do not appropriate funds or create new federal programs in themselves.