Federal Bill of the Month – June 2025: S.2043 – Open America’s Waters Act

The Open America’s Waters Act of 2025, introduced by Senator Mike Lee (R-Utah), seeks to repeal the Merchant Marine Act, commonly known as the Jones Act. The Jones Act comprises century-old protectionist regulations that have artificially inflated consumer prices, economically devastated American commerce, and distorted market forces.

The Jones Act – formally known as Section 27 of the Merchant Marine Act of 1920 – restricts all domestic cargo shipping to vessels that are American-built, American-flagged, American-owned, and American-crewed.

This legislation was passed with the stated goal of bolstering national security and increasing American maritime capacity. However, the Jones Act’s regulatory framework has created an artificially constrained domestic shipping market. Elevated costs associated with compliance result in higher prices for Americans on domestically produced goods. These compliance burdens have pushed American businesses to conduct business with foreign partners, including potential adversaries. This directly undermines the very national security goals the Act was designed to achieve.

Repealing the Jones Act would end market distortions that have plagued multiple industries and generate significant economic benefits. Energy prices would likely fall as domestic producers gain access to cost-efficient transportation options for crude and refined oils, as well as liquified natural gas. Sen. Lee’s bill would also eliminate the regulatory burden on businesses currently forced to navigate complex compliance requirements or resort to economically inefficient alternatives. This would allow firms to naturally optimize shipping routes and vessel deployment, reducing costs throughout American supply chains.

The Open America’s Waters Act would also improve national security by disincentivizing contracts with adversarial nations. By removing artificial barriers to domestic shipping, American businesses would no longer face perverse incentives to source critical energy supplies from nations like Russia and Venezuela. The current regulatory regime creates strategic vulnerabilities by forcing dependence on foreign suppliers. This occurs even when domestic alternatives exist but remain inaccessible due to regulatory constraints. Eliminating these barriers would strengthen energy security and reduce leverage points that adversarial nations currently exploit.

The bill would also generate positive fiscal impacts by reducing regulatory compliance costs and eliminating the need for government interventions to address Jones Act-related market failures. The legislation requires no federal expenditures and would almost certainly increase economic activity through improved market efficiency. Reduced shipping costs would lower the effective tax burden on American consumers, who currently pay inflated prices due to protectionist policies.

This bill represents a long-overdue correction to a failed protectionist policy that has imposed substantial costs on American consumers. The legislation would eliminate regulatory barriers that artificially constrain domestic commerce and create perverse incentives favoring foreign adversaries. Repealing the Jones Act would eliminate costly compliance burdens and give American industry the freedom to compete and thrive.

It is for these reasons, among others, that TPA is proud to make the Open America’s Waters Act, as introduced by Sen. Mike Lee, its bill of the month for June 2025.