The bill enables a nonprofit to bring private funding and donated assets to strengthen U.S. Merchant Marine Academy athletics and reduce startup costs, while increasing risks of sole-source contracting, conflicts of interest, and reduced public oversight of federal property.
Students and the U.S. Merchant Marine Academy gain greater athletic support because a dedicated nonprofit can raise and spend private funds (donations, sponsorships, licensing, ticketing) to support teams, facilities, and recruiting.
The Academy and taxpayers may see lower startup costs and faster program support because DOT nonappropriated-fund assets can be leased or transferred and limited DOT services (utilities, equipment, records) provided to the nonprofit.
Taxpayers and the Academy risk higher costs and weaker procurement safeguards because the bill permits sole-source contracts and procurement exceptions for services supporting the nonprofit.
Academy campus users and taxpayers could lose publicly available campus space or face more complicated federal oversight when Academy real property and assets are rented or transferred to the nonprofit.
DOT employees serving (even unpaid) on the nonprofit board could create perceived or actual conflicts between agency duties and nonprofit activities, affecting federal employees and trust in agency decisions.
Based on analysis of 2 sections of legislative text.
Authorizes the Secretary of Transportation to form a U.S.-owned New York 501(c)(3) nonprofit to support USMMA athletic programs and to enter related contracts, leases, and limited support arrangements.
Introduced January 7, 2026 by Andrew R. Garbarino · Last progress January 7, 2026
Authorizes the Secretary of Transportation to create a wholly U.S.-owned New York nonprofit (a 501(c)(3)) to support the athletic programs of the United States Merchant Marine Academy (USMMA). The corporation would operate for charitable, educational, and civic purposes, hold Academy-related property leases for limited terms, enter contracts or cooperative agreements to provide goods and services for the Academy’s athletics, and receive limited administrative support from DOT. The bill sets governance rules (unpaid board service except travel, DOT employees may serve but cannot be more than one-third of directors and serve in official capacities), permits certain sole-source or otherwise-exempt cooperative agreements to support athletic activities, and allows short-term leases of Academy property to the nonprofit when not needed for immediate Academy use, with rent proceeds retained and used per the law’s instructions.