The Jones Act in Puerto Rico 2026: What It Is, What It Costs You, and Where the Fight to End It Stands

For the first time in over a century, part of the Jones Act is on pause. Since March 2026, the federal government has kept in place a temporary waiver that lets foreign-flagged ships carry fuel and other energy products between U.S. ports, including Puerto Rico, and that waiver was just extended through November 15, 2026 ⁴. But be clear: it is temporary, it covers only energy and fertilizers, and the fight for permanent relief for the island remains stalled in Congress ³. Here is what the law is, what it is costing you, and what could happen next.

The Jones Act is Section 27 of the Merchant Marine Act of 1920, the federal cabotage law. It requires that any cargo moving between two U.S. ports travel on ships built in the United States, flying the U.S. flag, owned by Americans, and crewed mostly by Americans ¹. Mainland states barely feel it, because goods can arrive by truck or rail. For Puerto Rico, which receives almost everything by sea from the mainland, the law sets the freight cost of nearly everything we consume. The Government Accountability Office (GAO) documented in 2013 that the island-mainland route is dominated by just four Jones Act carriers, and that qualifying bulk-cargo vessels are not always available when needed ¹.

The most cited numbers today come from a study by economists Russell Hillberry and Manuel Jimenez of Purdue University, published by the Cato Institute in 2024. Their estimate: the Jones Act costs Puerto Rico's economy about $1.4 billion per year, roughly $203 per person annually, in 2016 dollars ². Of that burden, about $692 million falls directly on households, equal to 1.1% of all family spending, and the combined effect works as if final goods from the mainland paid an average tariff of 30.6% ². The GAO has been more cautious: its 2013 report concluded the exact effect on consumer prices is hard to measure precisely, though it acknowledged the costs and the fleet's limitations ¹.

What it means for you

Almost everything you buy arrived by ship: your groceries, your car, construction materials, parts, appliances. When ocean freight costs more, that markup gets passed into the final price on the shelf and at the dealer ². The Purdue study found the effect is largest on capital goods like machinery and equipment, whose prices rise about 3% because of the law, which also makes doing business on the island more expensive ². In energy the effect is direct: because almost no Jones Act-compliant tankers exist for certain products, it has historically been cheaper for the island to buy foreign fuel than to bring it from Texas or Louisiana, even though Puerto Rico is part of the United States ¹².

Current status

Here is what is in effect today, verified as of August 2026. On March 17, 2026, the Department of Homeland Security (DHS) issued, at the request of the Department of Defense and amid the conflict with Iran and disruptions in the Strait of Hormuz, a sweeping Jones Act waiver for energy and agricultural products ⁴. The waiver was expanded on April 24 to more than 600 product categories, and on August 17 it was extended for another 90 days, through November 15, 2026, though narrowed to 237 tariff codes: crude oil, gasoline, diesel, liquefied natural gas, propane, fertilizers and related products ⁴. The new phase adds red tape: each voyage requires pre-authorization, a Maritime Administration (MARAD) market survey to confirm no U.S. vessel is available, and a post-voyage report ⁴.

In Congress, the most relevant live bill for the island is H.R. 3167, the Noncontiguous Energy Relief and Access Act of 2025, introduced in May 2025 by Representatives Ritchie Torres and Ed Case and Delegate James Moylan. It would permanently exempt the transport of energy products to Puerto Rico, Hawaii, Alaska and Guam ³. Its real status: still parked in the House Transportation and Infrastructure Committee, with no hearing and no vote ³. History invites skepticism: after Hurricane Maria in 2017, the waiver lasted just 10 days and DHS let it expire without a single ship using it ⁵.

What's next

The key date is November 15, 2026, when the current waiver expires. It could be extended again, trimmed further, or die, and with the new per-voyage requirements its practical use may shrink ⁴. In parallel, the island's advocates are pushing for H.R. 3167 to at least get a public hearing, while the shipping industry and maritime unions lobby against any permanent exemption ³. The data this waiver period generates, on how much it actually lowered the cost of bringing in fuel, will be central ammunition in that debate ²⁴.

Sources

¹ GAO, report GAO-13-260 on the Jones Act and Puerto Rico (2013) ² Hillberry and Jimenez, The Effect of the Jones Act on Puerto Rico, Cato Institute (2024) ³ Congress.gov, H.R. 3167, Noncontiguous Energy Relief and Access Act of 2025 ⁴ Holland & Knight, DHS Extends Jones Act Waiver Again (August 2026) ⁵ The Maritime Executive, DHS Will Allow Puerto Rico Jones Act Waiver to Expire (Oct. 2017)