Trump administration considering Jones Act waiver amid rising fuel prices
- Admin
- Mar 13
- 3 min read
By Pacific Island Times News Staff
The Trump administration is looking into easing restrictions imposed by the Jones Act amid escalating war in Iran that threatens the global fuel supply.
The 100-year-old statute requires goods shipped between U.S. ports to be carried on ships that are U.S.-built, U.S.-flagged and U.S.-crewed. It limits the number of tankers domestic shippers can use.
"In the interest of national defense, the White House is considering waiving the Jones Act for a limited period of time to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports," White House spokeswoman Karoline Leavitt said in a statement.
Leavitt said the action has not been finalized.
On Guam, lawmakers welcomed the White House's announcement, which came as countries around the world grapple with a fuel crisis triggered by the ongoing war and rising tensions across key energy routes.
The conflict has cut supply chains and raised concerns over global oil and gas flows.
"President Trump’s consideration of a temporary Jones Act waiver is the right move for American energy and national security," said Sen. Jesse Lujan, who earlier wrote to Trump, seeking a Jone Act waiver.
"For too long, Guam has been 'America Last' in the Pacific, forced to rely on foreign fuel while being trapped by outdated shipping regulations," he added.
Lujan said a Jones Act waiver could lower gas prices and electricity costs for Guam families.
"I urge the administration to finalize this relief now to protect our economy and our frontline role in the Indo-Pacific," Lujan said. "While it may be temporary in nature, the realization of positive results may be beneficial in Guam's advocacy toward a more permanent waiver."
Vice Speaker Tony Ada said the Trump administration’s consideration of a temporary Jones Act waiver marks an important step forward for Guam.
"With gas and power prices at crisis levels, this relief is crucial to shielding our families from the overwhelming cost of living," said Adam, a gubernatorial candidate.
"America’s frontline in the Pacific, Guam should remain a priority in maritime policy decisions," he said.
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Describing the Jones Act as "outdated," Ada said the shipping restrictions have stifled Guam's economic growth.
"By strengthening our federal partnership, we can ensure that Guam’s unique geographic realities are respected. This waiver would enable affordable American energy to reach our shores more directly, supporting our local stability and bolstering our role in national security," Ada said.
There are several pending bills in the U.S. House of Representatives, introduced by Rep. Ed Case of Hawaii and co-authored by Guam Del. James Moylan, seeking to mitigate the effects of the Jones Act on certain U.S. jurisdictions.
The Noncontiguous Energy Relief and Access Bill would exempt energy shipments to Guam, Hawaii, Alaska and Puerto Rico from Jones Act restrictions to lower fuel and energy costs.
The Noncontiguous Shipping Relief Act proposes to grant a limited exemption from the Jones Act to Guam and other U.S. territories, allowing more competitive shipping.
"The Jones Act inflicts significant economic disadvantages on non-contiguous regions of the United States," Moylan said in his remarks before a forum hosted by the Cato Institute late last year.
"For Guam, these outdated restrictions translate to inflated prices on essential goods, hindering economic growth and negatively impacting the daily lives of our families. A $12 gallon of milk is just one glaring example of how these outdated restrictions drive up the price of basic necessities for our people," he added.
Another bill, the Noncontiguous Shipping Reasonable Rate Act, would cap domestic shipping charges for non-contiguous routes at 10 percent above comparable international rates.
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