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SEPTEMBER 2026
foreign port for purposes of the Pas-
senger Vessel Services Act (PVSA). 
Foreign-flag cruise ships could then 
use a designated Alaska port to satisfy 
the PVSA foreign-port requirement 
applicable to certain domestic itiner-
aries rather than calling at a port in 
another country.
Those promoting the legislation ar-
gue that it would allow foreign-flag 
cruise ships to offer Alaska itineraries 
without calling at a Canadian port 
while directing additional passenger 
activity and economic benefits to an 
Alaska Native-owned destination. 
PVA does not question the value of 
supporting Alaska Native communi-
ties or strengthening Alaska’s tour-
ism economy. Our concern is that 
the legislation would achieve those 
goals by granting foreign-flag cruise 
operators a special exception from 
a longstanding U.S. maritime law 
while coastwise-qualified U.S.-flag 
operators remain subject to U.S. con-
struction, crewing, safety, tax, and 
regulatory requirements.
The PVA Board of Directors adopted 
a resolution opposing the proposal. 
PVA represents operators in Alaska 
and the Pacific Northwest that have 
invested in coastwise-qualified, U.S.-
built vessels, employ American crews, 
and comply with U.S. laws. Those 
businesses could be disadvantaged by 
an exception designed for foreign-flag 
cruise lines. PVA is also concerned that 
the proposal could become a precedent 
for further erosion of the PVSA.
PVA conveyed its position directly to 
Representative Nick Begich’s office 
and raised our concerns with House 
Coast Guard and Maritime Trans-
portation Subcommittee and Senate 
Commerce Committee staff. As of 
this writing, the proposal has not 
been introduced. PVA will convene its 
overnight cruise members to discuss 
potential effects and develop a coordi-
nated response. We are also examining 
which U.S. labor, tax, safety, and oth-
er laws would apply to foreign vessels 
using a port deemed “foreign” only 
for PVSA purposes. Thanks to PVA 
member American Cruise Lines for 
raising the caution flag on this con-
gressional overreach.
FEDERAL FERRY  
INVESTMENTS ANNOUNCED
On Aug. 21, the Federal Transit 
Administration announced approx-
imately $664.8 million in fiscal year 
2026 funding for 23 ferry projects in 
14 states and the U.S. Virgin Islands. 
The selections draw from the Passen-
ger Ferry Grant Program, the Ferry 
Service for Rural Communities Pro-
gram, and the Electric or Low-Emit-
ting Ferry Pilot Program. Awards will 
support vessels, terminals, related in-
frastructure, operating assistance, and 
lower-emission technology.
The scale of this investment demon-
strates the essential role ferries play 
in connecting communities and rein-
forces the importance of protecting 
ferry programs as Congress develops 
the next surface transportation au-
thorization. PVA will continue advo-
cating for strong federal ferry funding 
and policies that recognize the con-
tributions of both public and private 
passenger vessel operators.

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