# Merchant Marine Act of 1920
Who / What
The **Merchant Marine Act of 1920** is a U.S. federal statute designed to promote and sustain the American merchant marine—a fleet of ships owned by Americans for domestic and international maritime trade. It establishes legal frameworks governing maritime commerce, including regulations on vessel ownership, crew qualifications, and coastwise trade (cabotage).
---
Background & History
The Merchant Marine Act was enacted in response to post-World War I economic challenges and the need to bolster U.S. maritime self-sufficiency. Before its passage, American shipping relied heavily on foreign-owned vessels, leaving critical domestic trade vulnerable to external control. The law aimed to incentivize American shipbuilding by offering tax breaks for new vessel construction while restricting foreign ownership of coastwise routes. Key milestones include:
---
Why Notable
The Merchant Marine Act remains pivotal for U.S. economic and national security interests. By prioritizing domestic shipping, the law ensures critical supply chains remain resilient to geopolitical disruptions. The **Jones Act** (Section 27) is particularly significant as it enforces cabotage rights—protecting American jobs in coastal trade while fostering maritime industry growth. Its legacy persists in debates over trade policies, energy independence, and the balance between global commerce and domestic priorities.
---
In the News
While not currently under active legislative review, the Merchant Marine Act remains relevant amid discussions on:
---
Key Facts
---
