Future of United States Maritime: Review of Fiscal Year 2027 MARAD and FMC Budget Requests

This was a congressional hearing held by the Transportation & Infrastructure Committee Republicans on June 4, 2026, to review the fiscal year 2027 budget requests for the Maritime Administration (MARAD) and the Federal Maritime Commission (FMC). The hearing focused heavily on procurement and budget issues related to the U.S. maritime industry, including funding for shipbuilding, port infrastructure, and maritime security programs. Key topics included the proposed $2.6 billion MARAD budget request, which relies heavily on a new maritime security trust fund not yet approved by Congress, and concerns over significant cuts to the Port Infrastructure Development Program (PIDP) and other critical programs. The FMC requested flat funding of $40 million despite increased responsibilities under the Ocean Shipping Reform Act of 2022, raising concerns about its ability to enforce fair competition and investigate shipping practices effectively. Witnesses discussed challenges such as the longest Jones Act waiver in history, which many members criticized for undermining domestic shipbuilding and maritime jobs. The hearing also addressed modernization efforts, small shipyard grants, and the need for a coordinated government approach to increase U.S.-flagged cargo and revitalize the maritime industrial base. Several members emphasized the importance of ending the Jones Act waiver and passing the SHIPS Act to provide stable funding and support for the industry. The FMC highlighted enforcement successes, including significant penalties against shipping companies for unfair practices. Overall, the hearing underscored the need for increased and stable funding, regulatory reforms, and coordinated policy actions to strengthen the U.S. maritime sector and supply chain resilience.