Lee Introduces America First Deregulation for Coastal Trade

Lee Introduces America First Deregulation for Coastal Trade
July 30, 2025
WASHINGTON – U.S. Senator Mike Lee (R-UT) introduced three pieces of legislation today to repeal and reverse the effects of the overreaching
Passenger Vessel Services Act of 1886 (PVSA)
. Senator Lee’s three-pronged approach will strengthen America’s economy while protecting American jobs and businesses by repealing
PVSA
and eliminating its burdensome regulations.
“Red tape around America’s ports is strangling our economy and boosting foreign interests,”
said Senator Mike Lee.
“Current law protects ships that haven’t existed for decades and creates ridiculous requirements, forcing cruise ships to take Americans to foreign ports instead of their own cities. My legislation will repeal these outdated regulations, protect American jobs, and put our economy first.”
Background:
The
Passenger Vessel Services Act (PVSA)
is an outdated regulation intended to protect America’s coastal trade and tourism by restricting the domestic waterborne transportation of passengers only to ships that are U.S.-built, U.S.-flagged, and largely U.S.-crewed and -owned. This regulation was meant to insulate America’s coastal industries from foreign competition – with one exemption for ships making stops at “distant foreign ports.”
In practice, however,
PVSA
has stunted America’s economy by complicating trade practices and incentivizing foreign travel over American tourism. For example, because the United States has produced no large cruise ships in
over sixty years
, virtually any of these vessels moving passengers from one American port to another is essentially required by law to stop at a “distant foreign port” in order to legalize its domestic American travel. This means America is shipping its tourism economy to other countries in order to protect American-made cruise ships that no longer exist.
Far from an America First approach,
PVSA
regulations favor foreign economies and special interests.
Senator Lee’s legislation will cut through the red tape strangling America’s coastal economy by repealing
PVSA
, eliminating its requirement for U.S.-built vessels, and exempting large passenger ships from
PVSA
requirements.
The
Open America’s Ports Act
:
Repeals the Passenger Vessel Services Act (PVSA).
The
Protecting Jobs in American Ports Act
:
Repeals the section of PVSA barring non-U.S.-built vessels from standard treatment at American ports.
The
Safeguarding American Tourism Act
:
Exempts large passenger vessels (those with 800 or more passenger berths) from PVSA restrictions.
Read the full text of the legislation below:
Open America’s Ports Act
Protecting Jobs in American Ports Act
Safeguarding American Tourism Act
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