Congress Eyes Legislation to Reauthorize the Federal Maritime Commission

For the second time in the federal government's current fiscal year (FY), which started on October 1, 2025, operations of the Federal Maritime Commission (Commission or FMC) were briefly suspended earlier this month due to a lapse in federal funding.

Though the latest shutdown affected FMC operations for four calendar days, including two business days comprising February 2-3, it came on the heels of a more disruptive 43-day government shutdown that lasted from October 1 to November 12, 2025. During both shutdowns, the Commission announced that its SERVCON system would remain available for service contract filings, but FMC would not process submissions. The Commission also announced it would not accept certain online filings, such as those related to Ocean Transport Intermediary applications or license updates, Non-Vessel Operating Common Carrier registrations or renewals, or Tariff Registration Forms (FMC-1s), as well as any complaints and requests for dispute resolution services during the shutdown.

The shutdown affecting the Commission ended when President Donald Trump signed the Consolidated Appropriations Act (P.L. 119-75) into law. That law includes funding for the FMC in the amount of $40 million for the full FY. (Note: The federal government is currently in the fifth day of a third shutdown this FY, which, though limited to U.S. Department of Homeland Security funding and not affecting the Commission, could still affect aspects of shipping and logistics.)

Commission Reauthorization

Now that the FMC has been funded through September 2026, the U.S. Congress can turn its attention to legislation to reauthorize the Commission. The FMC's current authorization of appropriations expired at the end of FY 2025. On December 15, 2025, the U.S. House of Representatives passed H.R.4183, FMC reauthorization legislation introduced by Rep. Dusty Johnson (R-S.D.). The U.S. Senate has yet to act on the House-passed legislation or alternative legislation.

Among its provisions, the House-passed reauthorization would make the following changes in federal law:

• extend the authorization for appropriations for the Commission for FY 2026 (the current FY) and FY 2027 at the FY 2025-authorized level of $49.2 million
• expand the definition of "controlled carrier" to include state-controlled enterprises, defined as carriers legally or financially related to a corporation based in, headquartered in or linked to a nonmarket economy country or country subject to monitoring by the Office of the U.S. Trade Representative (USTR)
• expand on FMC's access to subject matter experts, similar to what was first established with the creation of the National Shipper Advisory Committee in P.L. 116-283; for context, the purpose of the National Shipper Advisory Committee is to provide information, insight and expertise pertaining to conditions in the ocean freight delivery system to the Commission, and the Commission recently recognized the committee's work; the reauthorization bill creates two new committees: the National Port Advisory Committee and National Ocean Carrier Advisory Committee; collectively, the three committees would be charged with advising the FMC on policies relating to competitiveness, reliability and efficiency related to international ocean freight delivery
• eliminate the requirement for parties to report information to the Commission when such reporting is duplicative to existing reporting requirements for other government agencies
• require annual reporting by the Commission as to marine terminal operators in addition to ocean carriers, with the goal of identifying anti-competitive or nonreciprocal trade practices
• require a majority vote by the Commission before its investigative materials could be released to other federal agencies

Holland & Knight Can Help

Holland & Knight will continue to monitor updates and provide timely guidance as further legislative details emerge. The Firm's Maritime Team is strongly positioned to guide shipowners, operators and ship managers through the complex legal landscape affecting their business operations and to positively influence the lawmaking process. Our team features deep maritime industry knowledge, direct recent Capitol Hill legislative experience (including in the House Speaker's offices) and experience in U.S. trade enforcement, including former professionals from the FMC, USTR office, U.S. Customs and Border Protection and the U.S. Coast Guard.

For further questions or tailored advice, please reach out to a member of the team.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.