You thought I didn't remember Zeihan talking about this last year. Didn't you!
Connecticut Asks Congress to ‘Rethink the Jones Act’
The century-old law has driven up prices, jammed roads and shriveled the U.S. maritime industry.
By Bryce Chinault and Andrew Fowler, WSJ
Feb. 21, 2025 4:37 pm ET
In his State of the State Address on Jan. 8, Connecticut Gov. Ned Lamont outlined policy priorities for the 2025 legislative session. While most of his speech focused on state-specific issues such as fiscal responsibility, healthcare, education and energy, he took a moment to call on the U.S. Congress to “rethink the Jones Act.” It wasn’t the first time Mr. Lamont raised concerns about this particular law. In 2022 he and other New England governors wrote to the Biden administration urging the suspension of the law, which they argued “effectively precludes” the delivery of U.S.-exported liquefied natural gas to New England.
Officially known as the Merchant Marine Act of 1920, the Jones Act blocks foreign-flagged ships from transporting goods between U.S. ports. The law has historically had many detractors from both sides of the aisle. Republican Sen. John McCain was against it. Hawaii Democratic Rep. Ed Case has blamed the law for “artificially inflating the cost of shipping goods” to his state. Rep. Alexandria Ocasio-Cortez called for a “one-year waiver from the Jones Act for Puerto Rico” after Hurricane Fiona hit the island in 2022.
These pages have long editorialized in favor of the Jones Act’s repeal. The most recent attempt to do so was introduced by Utah Republican Sen. Mike Lee in January 2024. But the Senate Commerce, Science and Transportation Committee, then led by Democrats, took no action beyond reading the bill. Now the political landscape has shifted and Republicans control the committee. The time is right to revisit Mr. Lee’s bill.
The Jones Act has powerful supporters. Most of them represent constituencies that benefit financially in some way from the economic distortions the law creates. Groups such as the AFL-CIO, the Marine Engineers Beneficial Association and American Maritime Partnerships have spent heavily to preserve the Jones Act. Organizations like the Transportation Institute argue it is “critical” for national security and domestic economic stability, ensuring “reliable domestic water transportation service” and employment for hundreds of thousands of U.S. citizens. Some Republicans, including Louisiana Sen. Bill Cassidy and Florida Rep. John Rutherford, support leaving the Jones Act alone.
President Trump has been coy, but in December he posted a link to a pro-Jones Act article on his Truth Social account. If he’s serious about bringing costs down for American consumers, he should call Mr. Lamont and listen to his pitch. Connecticut has no natural-gas reserves or production, and the state’s consumers pay some of the highest prices for energy in the nation. Almost all the LNG they use to cook and keep warm in the winter enters the state overland from New York.
In addition to driving up gasoline prices, the Jones Act increases the volume of heavy traffic on Connecticut highways by forcing goods to be delivered via long-haul vehicles. The law also makes replacing ferries—like those that cross Long Island Sound from Connecticut—difficult since new ships are required to be constructed in the U.S. American-built ships are “far less numerous and far less competitive than their international counterparts,” according to the Cato Institute.
Congress intended the Jones Act to bolster domestic shipbuilding. It hoped to spawn a ready supply of merchant mariners during war or national emergency. But by requiring every ship transporting goods between U.S. ports to be built, owned and largely crewed by U.S. citizens, the Jones Act limits competition. This has led to an aging fleet of U.S.-compliant ships, with fewer than 100 vessels left in operation, down from more than 250 in 1980. Contrary to the legislation’s original intent, there isn’t a single U.S.-flagged, U.S.-built LNG carrier sailing today. The country has few options for moving goods via maritime transport.
The U.S. is the world’s largest natural gas producer. But, according to a report by the Competitive Enterprise Institute, the Jones Act means Americans “can’t realize many benefits arising from this incredible production.” Even progressive outlets like Vox and Slate concede that the law has stifled Puerto Rico’s long-term economic growth.
The Jones Act’s repeal would reduce energy and transportation costs—in Connecticut and every state. Mr. Trump has the power to strike a blow against inflation while restoring the American maritime industry to greatness. Smart Democrats like Mr. Lamont and other Northeast governors would likely support him.
Mr. Chinault is director of state government affairs at Abundance Institute. Mr. Fowler is communications specialist at Yankee Institute.
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