For the majority of Alaskans, the Jones Act is far from being an obscure piece of legislation. Rather, it operates as an unseen levy, embedded in every litre of fuel, each piece of timber, and every shipment of groceries landing on our shelves. This century-old protectionist law has quietly drained Alaska’s economy, posing a burden upon its people.
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The Jones Act’s Historical Context
In 1920, the Jones Act was enacted, mandating that vessels transporting goods between U.S. ports must be American-built, American-owned, and American-crewed. The motive? To benefit Washington state’s shipping interests at Alaska’s expense, effectively granting them a monopoly on our trade and staving off competition from more efficient foreign carriers. Over a century later, this damage persists.
The Tustumena Problem
Nowhere is the impact more evident than in the saga of the Tustumena Replacement Vessel (TRV). Launched in 1964, the Tustumena remains a vital conduit for 13 ports from Southcentral to Kodiak Island and Southwest Alaska. Carrying passengers, freight, and essential goods, it is indispensable for communities reliant on it for nearly all inter-community transport. Yet, after 60 years, the “Rusty Tusty” is barely afloat, with annual repairs costing millions. Breakdowns and canceled sailings are far too frequent.
The Costly Burden
The endeavour to replace her should have been simple, yet the Jones Act has transformed it into a financial quagmire for Alaska. The new hybrid-electric Ro-Pax ferry, initially projected at $200 million to $250 million in 2021, now demands over $340 million. Expected delivery has been pushed to 2029. Although federal grants contribute roughly $170 million, Alaskans are forced to bear over $100 million from their own pockets.
What’s the culprit? The Jones Act’s insistence on construction within U.S. shipyards, which are fewer than 20 viable options today. Overburdened with Navy contracts, they charge substantially more than foreign counterparts. If constructed overseas, a comparable ferry would cost between $80 million and $110 million, meaning Alaska shoulders an additional $230 million solely due to the Jones Act.
A Hidden Tax
The operational costs are steep as well. U.S.-crewed vessels require up to five times more expenditure than foreign-flagged ones, yet the fleet continues to age. Nearly 60% of American ferries exceed 40 years old, with taxpayers funding billions in emergency repairs annually.
Sen. Wesley Jones of Washington crafted the law to bind Alaska into Seattle’s supply chain—a strategy that worked well for Washington. Presently, 95% of Alaska’s goods arrive by sea. Shipping costs here range from 60% to 100% above global averages. A single lumber container to Anchorage costs an additional $1,800 compared to Vancouver. Grocery freight inflates costs for Alaskans significantly each year. The question lingers: Why is fuel expense high in Alaska? It’s the Jones Act tax. Fuel prices soar, adding substantial costs per gallon. Altogether, the Jones Act acts as a considerable drag on the economy.
Energy Conundrum
The real travesty, however, lies in energy. Alaska boasts a considerable portion of America’s natural gas reserves, yet no Jones Act-qualified LNG tanker exists worldwide. Thus, shipping our own gas to our own citizens becomes impossible. Russian and Chinese LNG carriers freely transit the Arctic, but Alaska remains shackled by a federal law crafted a century ago to protect certain interests.
Path to Reform
However, we are not without hope. Reform is gaining traction with bipartisan support. Congressman Ed Case of Hawaii has proposed H.R. 3862 to waive the Jones Act’s build rule for rural ferries. Sen. Lisa Murkowski’s proposal seeks Alaska-specific exemptions for ferries and crude exports. Congress is also deliberating HR667, the Non-Contiguous Shipping Relief Act, while the Government Accountability Office recommends automatic waivers for public ferries after 180-day bid failures. Even these partial reforms promise millions in savings for Alaska over the next decade and could generate thousands of jobs.
As a retired Coast Guardsman and airline pilot, I value American mariners and transport workers. What I reject is a flawed system that prices us out of our future and harms the very workers it claims to protect.
A Call to Action
Alaskans deserve better than to foot the bill for a century-old mistake. While the Jones Act has benefited its architects, it has failed our state. The time to cut this anchor and move towards prosperity is now. Contact your congressional delegation and advocate for Jones Act reform and the Noncontiguous Shipping Relief Act. Make it clear: Alaskans are ready to set sail towards a brighter future.
Rep. Kevin McCabe of Big Lake serves as the Alaska state representative for House District 30. This district includes Point MacKenzie, Big Lake, and follows the Parks Highway north to Anderson.
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