Carbajal Questions DHS Oversight of Jones Act Waivers, Foreign Vessel Ops
U.S. Representative Salud Carbajal (D-CA-24) has called on the Department of Homeland Security (DHS) to explain its oversight of Jones Act waivers following reports that foreign-flagged vessels transported more than $40 million in petroleum products between U.S. ports without required disclosures.
In an October 16 letter to DHS Secretary Markwayne Mullin, Carbajal, Ranking Member of the House Subcommittee on Coast Guard and Maritime Transportation, questioned whether foreign vessel operators benefiting from the waivers are complying with U.S. tax, immigration, labor and maritime regulations.
"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," Carbajal wrote.
The Jones Act generally requires merchandise transported between U.S. ports to move aboard U.S.-built, U.S.-owned and U.S.-documented vessels. Waivers issued under 46 U.S.C. § 501(a) permit exceptions when necessary for national defense.
However, Carbajal emphasized that such waivers do not exempt foreign operators from other federal requirements.
According to his letter, publicly available information indicates that foreign-flagged vessels have completed more than 25 domestic voyages under the current waiver, with some vessels making multiple trips.
Carbajal also cited recent Internal Revenue Service guidance establishing that income earned by foreign corporations operating vessels between U.S. ports under Jones Act waivers constitutes domestic-source income and does not qualify for certain international shipping tax exemptions.
His letter requests detailed information on four areas: federal tax compliance, immigration status of foreign crewmembers, enforcement of other maritime and labor regulations, and coordination among federal agencies.
Particular attention is directed toward foreign mariners operating aboard vessels engaged in domestic transportation. Carbajal questioned how Customs and Border Protection interprets immigration restrictions applicable to nonimmigrant crewmembers and whether violations have been identified.
He also requested information about coordination between DHS, the Departments of Defense, Transportation and Treasury, the IRS and the U.S. Coast Guard.
"The Administration has now authorized the waiver for an aggregate period of approximately 250 days, making oversight particularly important," Carbajal wrote.
"Congress has a responsibility to ensure that a national-defense waiver is not being treated as a broader exemption from federal law."
Carbajal requested a DHS response by October 31, 2026.
The inquiry follows letters he sent in June to vessel owners and operators benefiting from the Trump administration's waiver, seeking information about compliance with U.S. law and potential impacts on American maritime employment and domestic shipping capacity.
