The U.S. House of Representatives Committee on Transportation and Infrastructure's Subcommittee on Coast Guard and Maritime Transportation convened a hearing, "Future of United States Maritime Part 1: Review of Fiscal Year 2026 Federal Maritime Commission Budget Request," on July 22, 2025. The session, which was attended by Holland & Knight's The Commission Blog editorial team, focused on evaluating the Federal Maritime Commission's (FMC) budget reauthorization for fiscal year (FY) 2026, as well as addressing the state of the ocean shipping industry and the FMC's ongoing work implementing the Ocean Shipping Reform Act of 2022 (OSRA 2022).
Commissioner Rebecca Dye – currently the longest-serving member of the FMC – was the sole witness to testify before the committee. Committee members voiced shared concerns about the FMC's readiness to exercise its expanded authority under the OSRA 2022, especially in light of a recent loss of workforce, leadership vacancies and a stagnant budget request.
Committee members were apprised that the FMC has lost approximately 20 percent of its workforce through the deferred resignation program and other departures, is operating with two vacant Commissioner seats and lacks a confirmed Chair. In the face of these headwinds and tasked with greater authority and responsibilities to regulate ocean shipping and protect the shipping public under OSRA 2022, some committee members questioned whether the Trump Administration's $40 million FY 2026 budget request – the same funding level requested for FY 2025 – was sufficient to meet the growing demands of the shipping public.
Commissioner Dye assured the committee that the FMC remains fully operational and continues to execute its mandate effectively. She emphasized that the agency is undergoing a "smooth transition" and that there will be consistency in its operations. She also emphasized that, despite the departure of two Commissioners, the FMC retains a quorum and therefore continues to possess its full statutory authority and capacity for decision-making. While acknowledging the departure of 13 employees, Commissioner Dye noted that the FMC is actively pursuing hiring exceptions from the present federal hiring freeze.
Some committee members expressed skepticism, suggesting that "just showing up for a quorum may not be enough." They voiced concerns about volatility in the shipping environment and influence of foreign "bad actors," in response to which they indicated that the FMC must demonstrate not only functionality but also resilience and leadership to reassure the shipping public that it is up to the task.
The committee also showed keen interest in the FMC's recent investigations into "flags of convenience." Members questioned the rationale behind these inquiries, potential risks to U.S. maritime interests and enforcement tools available to the FMC. Citing the sensitive nature of the ongoing investigations, Commissioner Dye refrained from disclosing specific details.
The committee commended the FMC's success with its implementation of the new Charge Complaint process, a mechanism introduced under Section 10 of OSRA 2022. Commissioner Dye advised that more than $2 million in unlawfully assessed charges have been ordered refunded or waived, with the total impact exceeding $5 million when including voluntary refunds and waivers by ocean carriers.
Holland & Knight's observations from its ongoing engagements before the FMC are consistent with Commissioner Dye's statements that the FMC is actively engaged and continuing to pursue its enforcement mandate in the midst of the continuously evolving landscape. Holland & Knight's Maritime Team will continue to report on Congressional considerations impacting the FMC.
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