In a letter sent this month to Secretary of Homeland Security Markwayne Mullin, the Ranking Member on the House Subcommittee on Coast Guard and Maritime Transportation, Congressman Salud Carbajal (D-CA), presented several questions seeking to determine if U.S. laws are being enforced as foreign vessel operators are being given American work under the ongoing Jones Act waiver.
“I am writing to express concern regarding the Department of Homeland Security’s (DHS) administration and oversight of Jones Act waivers, particularly in light of recent reporting that foreign-flagged vessels have transported more than $40 million in petroleum products between U.S. ports without required disclosures, among other potential violations. These reports raise significant questions about whether DHS and its component agencies are adequately enforcing federal law with respect to foreign vessels operating in U.S. domestic commerce,” Rep. Carbajal wrote.
He noted federal law does permit the “waiver of certain navigation and vessel-inspection laws only when necessary in the interest of national defense to address an immediate adverse effect on military operations.” He added: “The statute does not, however, provide an exemption from any other federal requirements applicable to foreign vessels, vessel owners, operators, employers, or crewmembers.”
Rep. Carbajal requested information pertaining to the questions summarized below:
1. Tax compliance. What steps has DHS taken, independently or in coordination with the Department of the Treasury and IRS, to ensure compliance with applicable federal tax requirements by foreign vessel owners, operators, charterers, and other waiver users? Has DHS provided Treasury or IRS with information identifying waiver users, vessel owners and operators, charterers, cargo interests, voyage dates, cargo movements, or other information necessary to identify potential tax obligations?
2. Immigration and crewmember status. Federal regulations generally provide that nonimmigrant crewmen admitted in D status may not be employed in connection with domestic movements of a vessel. How is DHS/CBP interpreting and applying this restriction to foreign officers and crewmembers serving aboard vessels engaged in domestic transportation under the waiver? What immigration classifications or other legal authorities permit such service? Has DHS/CBP identified instances in which a crewmember’s immigration status was inconsistent with domestic service, or in which a crewmember absconded? If so, what corrective or enforcement actions were taken?
3. Other federal requirements. Please describe the steps DHS and its component agencies have taken to ensure compliance with other applicable federal requirements, including maritime security, environmental protection, vessel safety and inspection, wage and hour, labor and employment, payroll and withholding taxes, harbor maintenance, customs, and any other requirements applicable to foreign vessels operating between U.S. points.
4. Interagency coordination and oversight. Please provide a description of all coordination between DHS and the Departments of Defense, Transportation, and Treasury; the IRS; U.S. Coast Guard; and other relevant agencies concerning operations under the waiver, including coordination regarding compliance with federal law and whether the statutory requirements for continued waiver authority remain satisfied.
“The Administration has now authorized the waiver for an aggregate period of approximately 250 days, making oversight particularly important. Congress has a responsibility to ensure that a national-defense waiver is not being treated as a broader exemption from federal law. I therefore request a response addressing the matters above by October 31, 2026,” Rep. Carbajal wrote.
The letter in its entirety is available online.