AWO Letter - February 20, 2026

NMC Closed Due to DHS Shutdown. Following a lapse in appropriations and shutdown of the Department of Homeland Security, the Coast Guard announced the National Maritime Center (NMC) and all Regional Exam Centers (RECs) are closed until further notice. Customer services and mariner examinations at RECs are cancelled, but the NMC's contact center remains operational. During the shutdown, the NMC will continue accepting mariner applications through the Application Submission Portal (ASAP) and will resume processing applications in the order they are received once the shutdown ends. AWO is actively monitoring funding negotiations, and should the shutdown persist, will advocate for blanket credential validity extensions to alleviate the current suspension of application processing and backlog of applications when operations resume to keep existing mariners working.

Lawsuits Challenge EPA's VIDA Performance Standards. The Lake Carriers' Association (LCA) and the California State Lands Commission, along with several environmental organizations, have asked a federal appeals court to review EPA's final regulations establishing performance standards for ballast water and other incidental vessel discharges under the Vessel Incidental Discharge Act (VIDA). The petitioners contend that EPA did not fully comply with VIDA or the Clean Water Act when issuing the rule.

Key issues raised by the petitioners include:

• Ballast Water Standards: California argues that EPA's numeric ballast water limits are not based on "best available technology" and challenges certain exemptions.
• Removal of Prior VGP BMPs: California and environmental petitioners challenge EPA's removal of certain ballast water best management practices in the prior Vessel General Permit (VGP).
• Biofouling and In-Water Cleaning: California argues that Congress did not authorize EPA to regulate biofouling under VIDA and challenges EPA's in-water cleaning provisions.  
• Treatment of Lakers: LCA argues that EPA cannot require new Lakers to install ballast water management systems (BWMS) as a best management practice, while environmental petitioners want EPA to expand the BWMS requirement to existing Lakers. 

Opening briefs were filed in December 2025, with supporting state briefs filed in January. EPA and intervenors will file response briefs in March, followed by oral arguments later this year. In the meantime, EPA's VIDA performance standards remain in place, and the Coast Guard continues to develop its implementation and enforcement regulations. AWO is closely monitoring the case and will keep members informed of key developments. For further information, please contact Lillie Wightman.  

AWO, ACC Renew Memorandum of Agreement. On February 17, AWO and the American Chemistry Council officially renewed their Memorandum of Agreement enabling ACC Responsible Care Partner companies in the marine sector to use the AWO Responsible Carrier Program as the pathway for meeting their Responsible Care certification obligations. The agreement, dating back to 2006, recognizes areas of consistency between the two programs, reducing duplicative audits and strengthening efficiency between domestic waterways transport and the chemical industry.

Under the renewed MOA, ACC and AWO will jointly develop a single audit instrument that satisfies the requirements of both programs, coordinate auditor training, align documentation expectations, and maintain regular communication as either organization updates its performance frameworks.

The AWO-ACC joint press release announcing the MOA renewal is available here. For more information, please contact Liam Morcroft.

$35 Million Available for Small Shipyard Grant Program. Funding for the Maritime Administration's Small Shipyard Grant Program is $35 million for FY2026, a quadrupling of the 2025 amount. This increase in shipyard funding is consistent with White House and Congressional efforts to support American maritime. The Small Shipyard Grant Program provides grants to small shipyards for capital improvements and shipbuilding training programs. The Notice of Funding Opportunity will likely be released this month, and applicants will then have 60 days to submit applications.

DOT to Develop National Digitalization Strategy. The Department of Transportation (DOT) has issued a Request for Information (RFI) to support the establishment of a national strategy for transportation digital infrastructure (TDI). DOT is seeking information from a broad range of transportation stakeholders on the research and development needed to modernize America's transportation system through the application of digital infrastructure. Responses will help determine a national strategy for developing TDI across all modes. AWO will submit comments to ensure that our industry's needs are represented, and AWO members are also encouraged to submit comments to represent your individual perspectives. Comments are due March 6.

AWO Joins WCI Fly-In. Earlier this month, AWO supported Waterways Council, Inc. during its annual congressional fly-in, shepherding teams from Kentucky, Mississippi, and Pennsylvania around the U.S. Capitol to educate legislators and their staff about our industry's priorities for the Water Resources Development Act (WRDA) and the annual energy and water appropriations process. These include excluding major rehabilitation projects at dams associated with inland navigation locks from cost sharing with the Inland Waterways Trust Fund, spending down the balance in the Inland Waterways Trust Fund, and opposing any potential tolling, lockage fees or other new charges on users of the inland waterways system.

WCI Releases White Paper on New Approach for Inland Navigation Construction Management. A new white paper prepared for Waterways Council, Inc. (WCI) outlines a programmatic solution to the continual cost overruns and schedule delays affecting major inland waterway construction projects. The paper argues that treating large navigation projects as isolated initiatives rather than as parts of a coordinated system has contributed to inefficiencies across planning, funding, design, and construction. With only three project completions over several decades, the paper concludes that a fundamental shift in how inland waterway projects are managed is necessary.

The paper proposes establishing an Inland Navigation Construction Organization (INCO) within the U.S. Army Corps of Engineers, built around a single Inland Program Manager serving as the central hub for communication, oversight, and accountability. This role would align project delivery with funding priorities, improve coordination with the Inland Waterways Users Board, and present a unified message to Congress. By managing inland navigation investments as a program rather than a competition among projects, the INCO model is designed to strengthen transparency, reduce conflicting priorities, and improve efficient project delivery.

Yale Study Examines Wellness Challenges Facing Inland Mariners. A newly-released study commissioned by The Seamen's Church Institute and authored by Dr. Martin Slade of Yale University's Occupational Health Division highlights wellness challenges affecting the U.S. inland mariner workforce. The U.S. Inland Mariner Wellness Assessment provides a comprehensive evaluation of the physical, mental, and organizational stressors experienced by mariners operating on America's inland waterways. 

Phil Schifflin, Esq., Director of SCI's Center for Mariner Advocacy, is leading efforts to engage inland maritime stakeholders in reviewing the report's findings, identifying practical next steps, and advancing improvements in mariner wellness. To learn more, download the full report or contact Phil Schifflin. 

Virginia On Track to Pass Paid Leave Bill. The Virginia Legislature is poised to pass a bill that requires employers doing business in the Commonwealth to grant their employees one hour of paid sick leave for every 30 hours worked, up to 40 hours of paid leave per year. The bill, as drafted, makes exemptions for companies with collective bargaining agreements and for certain healthcare employees, but otherwise defines "employer" broadly.

AWO has testified against the bill in the Virginia Senate and General Assembly, seeking an exemption for mariners given the unique work schedules of maritime employees. If enacted, the law would take effect on July 1, 2027. It is unclear whether and how the Commonwealth intends to enforce these paid leave requirements for out-of-state operators.  AWO will continue to work with members and Virginia policymakers to better understand the impact of the requirements on marine employers and explore a possible exemption for mariners. To read the bill, click here.

AWO Joins Florida Maritime Partnership for State Sail-In. On February 2-3, AWO joined fellow members of the Florida Maritime Partnership for the annual FMP Sail-In in Tallahassee, to educate state policymakers on the importance of the Jones Act and domestic maritime to Florida's economy, security, and disaster response capability. The delegation met with Sen. Ralph Massullo, Chair of the Florida Senate Transportation Committee; Jason Mahon, Deputy Secretary of Economic Development with Florida Commerce; and senior staff from the Office of Gov. Ron DeSantis, the Office of U.S. Senator Ashley Moody, and the Florida Division of Emergency Management.

AWO Discusses Stowaway Issues, Escort Requirements with Coast Guard in San Juan. Earlier this month, an AWO delegation including representatives from Crowley Corporation, TradeWinds Towing, McAllister Towing, and Moran Towing Corporation met with U.S. Coast Guard Sector San Juan to discuss regional issues affecting the tugboat, towboat and barge industry. Members and the Coast Guard discussed recent stowaway incidents in Hispaniola, shared intelligence, and learned about the steps the Coast Guard is taking to address concerns about the safety and security of industry operations on the island. Members also discussed a forthcoming regulated navigation area proposal for San Juan Bay and potential ship assist requirements for large ocean-going ships trading to San Juan. AWO will continue to work with members, the Coast Guard, and other industry partners to support safe, secure and efficient operations in Puerto Rico. 

AWO Leads at Washington Maritime Day. On February 5, the Washington Maritime Federation held its annual Maritime Day in Olympia. Thirteen AWO members joined the coalition effort, the highest percentage of attendees from any U.S. maritime sector. Key issues discussed included proposed revenue bills, mariner training, and the importance of the Columbia/Snake River system. Notably, AWO's advocacy led to language being included in the "millionaire tax" bill that protects contributions to the federal Capital Construction Fund for building or repairing vessels. Many thanks to Alaska Marine Lines Inc., Centerline Logistics Corporation, Crowley Corporation, Elliott Bay Design Group, Kirby Corporation, MITAGS, Nichols Brothers Boat Builders, Tidewater Transportation and Terminals, and Western Towboat Company for their contributions to this impactful advocacy effort. 

AWO Members Meet with Sector San Francisco. AWO members recently met with U.S. Coast Guard Sector San Francisco to discuss California's Commercial Harbor Craft Rule and maritime cybersecurity. Sector Commander CAPT Jordan M. Baldueza and his team hosted the gathering, which was also attended by Scott Humphrey, Executive Director of the Marine Exchange of the San Francisco Bay Region who highlighted the Marine Exchange's role in the broader marine transportation system. These ongoing engagements reflect AWO's commitment to collaboration, communication, and proactive problem-solving with the Coast Guard and other maritime stakeholders.  

TVIB Solicits Nominations for 2026 Mike Rushing Legacy Service Award. Now in its third year, the Mike Rushing Legacy Service Award recognizes individuals in the towing vessel and maritime community who demonstrate outstanding community service, professional excellence, and mentorship. To learn more about the award and its history, as well as the nomination process and who is eligible for nomination,  please visit TVIB's website.

AWO PAC and Inside Elections. AWO PAC has partnered with Inside Elections for another special edition, featuring an in-depth look at two significant races in Georgia and Pennsylvania's 8th District. This edition also offers brief updates on several other races and includes Senate, House, and Governor Race Ratings charts.

AWO PAC is the connected political action committee for The American Waterways Operators and serves as the trade association's separate segregated fund. As a trade association, AWO is prohibited from using general treasury funds or membership dues to make federal contributions. AWO is one of the most effective advocacy associations in Washington, DC, and relies on voluntary personal contributions to fund AWO PAC.

AWO PAC supports federal candidates who are champions of the U.S. tugboat, towboat and barge industry and who are leaders on issues important to our industry. AWO PAC is dedicated to protecting AWO members' investments in the safest, most environmentally responsible and most economical mode of freight transportation and safeguarding the integrity of the Jones Act to protect the bottom lines of our members.

AWO PAC may solicit contributions from individuals of a member company once the member representative gives AWO written prior approval.

AWO's Winter Meeting Series Continues! Thank you to all AWO members who joined the Atlantic Region Annual Meeting in Baltimore. We enjoyed hearing your ideas, participating in discussions, and seeing so many longstanding and new AWO members. 

Registration is still open for our upcoming meetings: the Combined Regions Annual Meeting, the Winter Safety Meeting, and the Pacific Region Annual Meeting. Don't miss these chances to connect and collaborate! 

We look forward to seeing you in New Orleans and Vancouver, WA!