Opinion: The Jones Act: A century-old anchor dragging Alaska’s economy under water

For most Alaskans, the Jones Act is not some obscure federal statute. It is a hidden tax built into every gallon of fuel, every 2-by-4, and every grocery shipment that reaches our shelves. It is a century-old protectionist law that has quietly drained our economy and punished our people.

Passed in 1920, the Jones Act requires that any ship carrying goods between U.S. ports be built in America, owned by Americans, and crewed by Americans. It was written to benefit Washington state’s shipping interests at Alaska’s expense, granting them a monopoly on our trade and blocking competition from efficient foreign carriers. More than a hundred years later, the damage continues.

I spent decades in the Coast Guard and the transportation industry. I understand maritime safety, logistics and national security. The Jones Act delivers none of them. Instead, it has become a stranglehold on Alaska’s economy and a clear example of how protectionism has rigged the rules against us.

Nowhere is that clearer than in the case of the Tustumena Replacement Vessel, or TRV. The Tustumena, launched in 1964, serves as a lifeline for 13 ports across Southcentral, Kodiak Island and Southwest Alaska. It carries passengers, freight and essential goods to communities that depend on it for nearly all of their inter-community transport. After 60 years of service, the “Rusty Tusty” is on life support. Annual repairs cost millions. Recently, the canceled sailings due to breakdowns has become significant.

Replacing her should have been straightforward, yet the project has become a case study in how the Jones Act bleeds Alaska dry. The new hybrid-electric Ro-Pax ferry was originally estimated at $200 million to $250 million in 2021. Today, it is over $340 million, with delivery delayed until 2029. Federal grants cover roughly $170 million, but Alaskans must still pay more than $100 million out of pocket.

Why? Because the Jones Act forces construction in U.S. shipyards, and there are less than 20 viable yards left. Most are backlogged with Navy contracts and charge far more than foreign competitors. A comparable ferry built overseas would cost between $80 million and $110 million. That means Alaska is paying more than $230 million extra, a pure Jones Act premium.

Operating costs are just as bad. U.S.-crewed ships cost up to five times more to run than foreign-flagged vessels, yet our fleet continues to age and decay. Nearly 60% percent of American ferries are more than 40 years old, and taxpayers spend billions every year on emergency repairs.

This is protectionism on steroids. Sen. Wesley Jones of Washington wrote the law to lock Alaska into Seattle’s supply chain. He succeeded. Today, 95% of Alaska’s goods arrive by sea. Shipping costs here are 60% to 100% higher than global averages. A single container of lumber to Anchorage costs $1,800 more than to Vancouver. Grocery freight adds millions of dollars of cost to Alaskans each year. People always ask me why fuel in Alaska cost so much. It’s the Jones Act tax, folks. Fuel costs rise exponentially, adding huge percentages per gallon. Altogether, the Jones Act is a significant, if not the most significant, drag on Alaska’s economy.

The real scandal is energy. Alaska holds much of America’s natural gas reserves, yet not one Jones Act-qualified LNG tanker exists anywhere in the world. That means we cannot ship our own gas to our own citizens. Russian and Chinese LNG carriers transit the Arctic freely, but Alaska cannot move its own energy because of a federal law written a century ago to protect Washington unions and shipping companies.

This is economic colonialism under a different name. Washington, D.C., Washington state and entrenched special interests grow rich while Alaska pays the bill.

But we are not powerless. Bipartisan reform is gaining traction. Congressman Ed Case of Hawaii has introduced H.R. 3862 to waive the Jones Act’s build rule for rural ferries. Sen. Lisa Murkowski has introduced S. 912 to create Alaska-specific exemptions for ferries and crude exports. Congress is considering HR667, the Non-Contiguous Shipping Relief Act, and the Government Accountability Office recommends automatic waivers for public ferries after 180-day bid failures. Even these partial reforms could save Alaska and Alaskans millions over the next decade and create thousands of jobs in trade and logistics.

As a retired Coast Guardsman and airline pilot, I believe in American mariners and transportation workers. What I do not believe in is a broken system that prices all of us out of our own future and harms the very union workers it claims to protect.

Alaskans deserve better than to pay for a century-old mistake. The Jones Act has served its architects well, but it has failed our state. It is time to cut this anchor loose and scuttle the Jones Act.

Call our congressional delegation and demand their support for Jones Act reform and the Noncontiguous Shipping Relief Act. Tell them Alaskans are ready to cut this anchor and sail toward prosperity.

Rep. Kevin McCabe of Big Lake is the Alaska state representative for House District 30, which encompasses Point MacKenzie, Big Lake and follows the Parks Highway north to Anderson.

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