Assessing the Jones Act: Perspectives from the Noncontiguous States and Territories

from CATO Institute, Sept 16, 2025

Noncontiguous states and territories are disproportionally harmed by the Jones Act’s restrictions on shipping competition. Rooted in 18th-century protectionism, the law significantly increases the cost of water transportation for these shipping-dependent parts of the country when trading with each other and the US mainland. Beyond these economic costs, the Jones Act has also proven to be ineffective in meeting the country’s national security needs amidst a collapse in shipbuilding, a declining fleet, and a shortage of mariners. There is a growing and bipartisan recognition among policymakers that an overhaul of US maritime policy is sorely needed to meet the country’s economic and national security needs.

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MOYLAN HIGHLIGHTS JONES ACT'S IMPACT ON NON-CONTIGUOUS COMMUNITIES AT CATO INSTITUTE EVENT; CALLS FOR URGENT REFORM

Press Release from Office of Rep James Moylan, Sept 19, 2025

(Washington, D.C.)—Congressman James Moylan (R-Guam) joined Representative Ed Case (D-HI) at the Cato Institute to highlight the urgent need for reforms to the Jones Act, which continues to impose disproportionate costs on non-contiguous U.S. states and territories like Guam and Hawaii.

During his remarks, Congressman Moylan underscored the unique challenges faced by Guam and other similar regions due to the Jones Act's requirements that goods shipped between U.S. ports be carried on U.S.-built, U.S.-crewed, and U.S.-owned vessels.

"The Jones Act inflicts significant economic disadvantages on non-contiguous regions of the United States," Congressman Moylan stated at the Cato Institute event. "For Guam, these outdated restrictions translate to inflated prices on essential goods, hindering economic growth and negatively impacting the daily lives of our families. A $12 gallon of milk is just one glaring example of how these outdated restrictions drive up the price of basic necessities for our people.”

To address these inequities, Congressman Moylan and Congressman Case are working together to advance bipartisan legislation, including:

• Noncontiguous Shipping Relief Act: creates limited exceptions to the Jones Act for territories like Guam, allowing more competitive shipping while maintaining labor and environmental standards.

• Noncontiguous Shipping Reasonable Rate Act: caps domestic shipping charges for non-contiguous routes at no more than 10% above comparable international rates.

• Noncontiguous Disaster Shipping Act: exempts the Jones Act during disaster situations to ensure emergency aid and supplies reach non-contiguous communities swiftly.

• Merchant Marine Allies Partnership Act: allows certain allied-nation vessels or shipyard modifications to qualify under U.S. law, reducing costs while supporting U.S. strategic partnerships.

• Noncontiguous Energy Relief & Access Bill: exempts energy shipments to Guam, Hawaii, Alaska, and Puerto Rico from Jones Act restrictions to lower fuel and energy costs.

"These reforms, while intended to support the U.S. maritime industry, have inadvertently created barriers to affordable goods and services for those of us geographically separated from the mainland," Moylan explained. "We need policies that foster economic opportunity, not stifle it."

Congressman Case echoed Moylan's concerns, emphasizing the need for bipartisan collaboration to address the issue. Both representatives reiterated their commitment to working together to advance reforms that will benefit non-contiguous communities.

Moylan concluded by emphasizing the importance of recognizing Guam's strategic significance in the Indo-Pacific region. “Reforming the Jones Act is not only about economic fairness; it’s also about ensuring that Guam remains a strong, resilient, and affordable home for our people while strengthening our nation’s position in the region.” Congressman Moylan remains dedicated to advocating for policies that promote economic prosperity and opportunity for the people of Guam and all non-contiguous states and territories.

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FW: Panel: Jones Act a dire economic ‘burden’ for Hawaii - FreightWaves

Guam Post: Guam, Hawaii congressional leaders team up against Jones Act | Local Business | postguam.com

Jan, 2025: Case, Moylan Reintroduce 'Affordable Shipping for All Act'