53 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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