What is the Jones Act, eyed in bid to lower gas prices?

President Trump on Friday said he was looking at loosening shipping rules in the Jones Act as a method to lower gas prices that have skyrocketed since the U.S. launched its military offensive in Iran two weeks ago.

Fox News host Brian Kilmeade pressed Trump on the issue during an interview on Kilmeade’s eponymous podcast, asking the president if he will suspend the Jones Act.

“It’s a restrictive act, it’s got some tremendous support in Congress,” Trump answered. “Support for it, not just to suspend it but support for it, the Jones Act. But we’ll take a look, we’ll take a look at everything and it’s all going to work out.”

The Jones Act is a 100-year-old law that requires shipping between U.S. ports to be done by U.S.-flagged ships. The White House is considering waiving the Jones Act “to ensure vital energy products and agricultural necessities are flowing freely to U.S. ports,” White House press secretary Karoline Leavitt said in a statement previously shared with The Hill.

Waiving the Jones Act could reduce average East Coast gasoline, diesel and jet fuel prices by 63 cents, 82 cents and 80 cents per barrel, respectively, according to a working paper from the National Bureau of Economic Research from 2023.

Also known as the Merchant Marine Act of 1920, the law was introduced by former Sen. Wesley Jones (R-Wash.). The law requires cargo transported by water between U.S. points only be shipped on U.S.-built ships steered by U.S. citizens and registered in the U.S., according to the Department of Transportation’s Maritime Administration.

“This encourages a strong U.S. Merchant Marine for both economic security and national defense by fostering a U.S.-flag fleet that can contribute to our financial wellbeing, and act as a sealift resource for the transportation of supplies in time of contingency,”

The Maritime Administration does not issue Jones Act waivers. This falls to the Homeland Security secretary, though by law they are “only authorized to grant a waiver if it is considered necessary in the interest of national defense.”

The Trump administration initially dismissed concerns over rising gas prices as a result of the Strait of Hormuz’s closure following the start of the conflict. Trump defended the price hikes, arguing on Thursday that “when oil prices go up, we make a lot of money.”

Another solution that the administration seeks is directing Sable Offshore to restart its oil drilling operations off the California coast.

The directive followed Trump’s executive order on Friday prioritizing pipeline transportation capacity and ensuring that crude oil produced off California’s coast travels through interstate pipelines. Doing so will allow California to reduce its “reliance on foreign oil vulnerable to geopolitical disruption,” according to the Energy Department.

California Attorney General Rob Bonta (D) said his office is reviewing all legal options, having previously sued the administration for approving the pipelines in January.