White House Expected to Extend Jones Act Waiver to Combat High Gas Prices

The White House is expected to extend a waiver of the Jones Act in the coming days, according to sources familiar with the matter, as the Trump administration seeks to alleviate pressure from high gasoline prices ahead of the November midterm elections. The current waiver, which allows for greater flexibility in shipping fuel between U.S. ports, is set to expire on August 16.

Waiver Details and Delays

The Jones Act is a century-old law that mandates goods shipped between U.S. ports be transported on vessels that are U.S.-built, owned, and crewed. The temporary suspension of these rules is intended to increase the availability of tankers and reduce transport bottlenecks.

According to U.S. government data, the exemption has been used nearly 200 times over the past four and a half months. An extension was anticipated by the end of July, but three people familiar with the discussions told Reuters that administration officials have continued to meet with maritime industry representatives and lawmakers to potentially narrow the waiver's scope.

Market Impact and Political Pressure

The move comes as the administration faces limited options to lower fuel costs, with U.S. gasoline prices averaging over $4 a gallon. President Trump has recently escalated his rhetoric against major oil companies, accusing Exxon Mobil and Chevron of making "too much money."

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However, the direct impact on consumers may be limited. Bob McNally, president of Rapidan Energy Group, told Reuters the waiver would likely reduce gasoline prices by only pennies per gallon. He noted that other measures, such as pressing Saudi Arabia to increase production, are not currently feasible due to regional conflicts, while options like a windfall profits tax are considered politically or economically risky.

Industry and Lawmaker Opposition

The potential extension faces significant pushback from maritime groups and some Republican lawmakers, including House Speaker Mike Johnson and House Majority Leader Steve Scalise. Critics argue that broad waivers undermine the domestic shipping fleet and the Jones Act's national security objectives.

Industry groups like the American Maritime Partnership (AMP) have launched advertising campaigns opposing the extension. AMP President Jennifer Carpenter argued the policy primarily benefits foreign interests, stating, "The waiver has shifted routine domestic commerce to foreign operators, including entities linked to China and Russia, while undermining the U.S. maritime industrial base."