Gas is at $3.60 a gallon nationally. Diesel is at $4.89. The White House is reaching for a 106-year-old law to do something about it.
The Jones Act — formally the Merchant Marine Act of 1920 — requires that any cargo shipped between two U.S. ports travel on ships that are American-built, American-flagged, and crewed primarily by Americans.
In practice, that means moving oil from Gulf Coast refineries to the fuel-hungry Northeast is expensive and slow. The qualifying U.S. fleet has shrunk from 193 ocean-going vessels to just 92.
When foreign tankers are blocked, Gulf Coast oil either sits or gets routed through Europe before reaching the East Coast — adding cost and time.
Bloomberg reported that a 30-day waiver is being developed to cover oil, gasoline, diesel, LNG, and fertilizer shipments between domestic ports.
White House Press Secretary Karoline Leavitt confirmed the administration is "considering waiving the Jones Act for a limited period of time" in the interest of national defense, while noting the action "has not been finalized."
Jones Act waivers are rare — the last one was issued after Hurricane Fiona hit Puerto Rico in October 2022.
Probably some — but not a lot.
A 2022 JPMorgan estimate put the savings at roughly 10 cents per gallon for East Coast drivers. Colin Grabow of the Cato Institute put it at single-digit cents. Gas prices are up roughly 60 cents since the Iran strikes began.
Maritime unions are already pushing back, arguing foreign ships undercut U.S. wages and national security. The waiver is one piece of a bigger toolkit — alongside the 400 million barrel SPR release — in a fight that's far from over.
