Washington Waves
Legislative/Regulatory

Waterway News From D.C.

In a stunning about face, President Donald Trump announced a 90-day pause effective immediately on the so-called reciprocal tariffs he had put in place only days earlier. Posting on his Truth Social media platform, Trump stated more than 75 countries have called his administration to negotiate a solution and have not retaliated.

China, however, did not receive a reprieve, and instead the president escalated the trade war by hitting China with a tariff of 125 percent. Trump cited China’s lack of respect for world’s markets.

“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A. and other countries is no longer sustainable or acceptable,” he said.

While taking questions from reporters, the president expressed confidence China also wanted to make a deal.

“They just don’t know how quite to go about it,” he said, describing the Chinese and President Xi Jinping as a proud people. “But they want to make a deal.”

Thus far, China’s official response has indicated the country is open to negotiations but vows to stay in the tariff fight until the end.

When asked about the process used to get to the pause, Trump specifically cited the response to those watching the bond market.

“They were getting a little bit yippy, a little bit afraid,” he said.

While welcoming Trump’s pause, the U.S. business community continued to express concern about the impact of the continued uncertainty.

Budget Win

In a major Republican victory, the House narrowly gave final approval to a congressional budget blueprint that unlocks a reconciliation process President Donald Trump wants to use to implement his agenda in “one big beautiful bill.”

House Concurrent Resolution 14, which had been amended by the Senate, passed the House by a vote of 216 to 214. Days earlier, the Senate approved the budget resolution by a vote of 51 to 48.

Approval of the same language by both chambers allows the budget process to advance under the reconciliation procedure, which is protected from a Democratic filibuster in the Senate.

A top priority for Trump is to use reconciliation to extend the tax cuts approved during his first term. Republicans also hope to include provisions to boost border security, energy, defense and government efficiency. Democrats describe the Republican approach as reckless, warning it will require the biggest Medicaid cut in history. House Speaker Mike Johnson (R-La.) has denied that claim, saying his party supports safety net programs.

Maritime Executive Order

Trump has signed an executive order to restore the nation’s maritime dominance by revitalizing domestic maritime industries and workforce. Trump’s order charges specific officials and agencies with specific assignments to achieve that policy and sets deadlines to get them done.

Tasks include an assessment of options within 180 days for the use of available authorities and resources and private capital to invest and expand the maritime industrial base, including the expansion of commercial and defense shipbuilding capabilities, component supply chains, ship repair and marine transportation capabilities, port infrastructure and the adjacent workforce. Within 210 days, a Maritime Action Plan (MAP) will be submitted to reflect actions taken.

Other areas covered by the order include a maritime security trust fund, shipbuilding incentive program, maritime prosperity zones, expansion of mariner training and education, modernization of the U.S. Merchant Marine Academy, an increase of the fleet of commercial vessels trading internationally under the U.S. flag and actions to ensure the security and leadership of Arctic waterways.

Regulatory Review

The Department of Transportation (DOT) is seeking help in identifying regulations and other obligations that can be repealed or modified to ensure the president reaches his goals of meaningful burden reduction and keeping the transportation system safe.

In its request for information in the Federal Register, DOT referenced Executive Order 14219, ‘‘Ensuring Lawful Governance and Implementation of the President’s ‘Department of Government Efficiency’ Deregulatory Agenda,’’ issued February 19, and Executive Order 14192, ‘‘Unleashing Prosperity through Deregulation,’’ issued January 31.

Comments and other information are requested by May 5.

Identified by “Regulatory Reform RFI,” comments may be submitted via https://www.regulations.gov under Docket No. DOT-OST-2025-0026, by email at Transportation.RegulatoryInfo@dot.gov with ‘‘Regulatory Reform RFI’’ in the subject line or by physical mail at U.S. Department of Transportation, Office of the General Counsel, 1200 New Jersey Ave. SE, Washington, DC 20590. For additional information, contact Daniel Cohen at 202-366-4702 or Transportation.RegulatoryInfo@dot.gov.

MarAd NOFO

The Maritime Administration (MarAd) posted a Notice of Funding Opportunity (NOFO) to provide grants totaling $8.75 million for qualified small shipyards to fund capital and related improvements. Applications will be accepted via grants.gov until 11:59 p.m. on May 15.

“Potential applicants are advised that it is expected, based on experience, that the number of applications will far exceed the funds available and that only a small percentage of applicants will be funded,” the notice stated.

With an award ceiling of $1 million, the notice said 15 awards are expected to be made.

Coast Guard Change

Acting Coast Guard Commandant Kevin Lunday announced an effort to bring transformational change to renew the service and ensure it is ready for the future and the nation’s demands.

Named “Force Design 2028,” the effort falls under the direction of Homeland Security Secretary Kristi Noem and is led by senior adviser Sean Plankey.

“Force Design 2028 is the way we will become a more agile, capable and responsive fighting force to best serve the American people,” Lunday said.

His announcement included some of the details of the effort’s four points of focus: people, organization, acquisition and contracting and technology. Details ranged from boosting access to medical care and modernizing the Coast Guard Reserve to eliminating bureaucratic delays and delivering assets needed by the service.

“We are executing transformational change to renew the Coast Guard,” Lunday said.

In a separate announcement, Sen. Rick Scott (R-Fla.) said he has introduced a bill to establish a secretary of the Coast Guard who will oversee operations and report directly to the Homeland Security secretary.

Community Project Funding

Rep. Tom Cole (R-Okla.), chairman of the House Appropriations Committee, released guidance for fiscal year 2026 bills, including lawmakers’ funding requests for community projects.

“As a result of the short timeline to draft bills in time for floor consideration, the committee is maintaining similar eligible program accounts for fiscal year 2026 community project funding,” Cole said in a letter lawmakers. “Additionally, due to the high demand and limited ability to fund all eligible requests, the limit of 15 projects per member will be continued.”

As for the projects submitted for fiscal year 2025, he said they remain eligible for FY2026 funding but must be resubmitted.