[Senate Report 119-126]
[From the U.S. Government Publishing Office]
Calendar No. 434
119th Congress } { Report
SENATE
2d Session } { 119-126
_______________________________________________________________________
USMMA ATHLETICS ACT OF 2026
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 3266
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
June 15, 2026.--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
69-010 WASHINGTON : 2026
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred nineteenth congress
second session
TED CRUZ, Texas, Chairman
JOHN THUNE, South Dakota MARIA CANTWELL, Washington
ROGER F. WICKER, Mississippi AMY KLOBUCHAR, Minnesota
DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee TAMMY BALDWIN, Wisconsin
TODD YOUNG, Indiana TAMMY DUCKWORTH, Illinois
TED BUDD, North Carolina JACKY ROSEN, Nevada
ERIC SCHMITT, Missouri BEN RAY LUJAN, New Mexico
JOHN CURTIS, Utah JOHN W. HICKENLOOPER, Colorado
BERNIE MORENO, Ohio JOHN FETTERMAN, Pennsylvania
TIM SHEEHY, Montana ANDY KIM, New Jersey
SHELLEY MOORE CAPITO, West Virginia LISA BLUNT ROCHESTER, Delaware
CYNTHIA M. LUMMIS, Wyoming
Brad Grantz, Majority Staff Director
Lila Harper Helms, Democratic Staff Director
Calendar No. 434
119th Congress } { Report
SENATE
2d Session } { 119-126
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USMMA ATHLETICS ACT OF 2026
----------------
June 15, 2026.--Ordered to be printed
----------------
Mr. Cruz, from the Committee on Commerce, Science, and Transportation,
submitted the following
R E P O R T
[To accompany S. 3266]
[Including cost estimate of the Congressional Budget Office]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 3266) to support the athletic
programs of the United States Merchant Marine Academy, having
considered the same, reports favorably thereon with an
amendment in the nature of a substitute and recommends that the
bill as amended, do pass.
Purpose of the Bill
The purpose of S. 3266 is to support the athletic programs
of the United States Merchant Marine Academy (USMMA) by
creating a mechanism to handle athletics-related fundraising,
licensing, and non-appropriated revenue outside standard
Federal fiscal constraints, which is similar to what other
service academies use.
Background and Needs
The USMMA is one of the five U.S. service academies.\1\ It
educates and trains students, known as midshipmen, to serve as
licensed officers in the U.S. Merchant Marine or as
commissioned officers in the United States Armed Forces.\2\
Like all service academies, the USMMA participates in National
Collegiate Athletic Association (NCAA) athletics.\3\ The U.S.
Military Academy, the U.S. Naval Academy, and the U.S. Air
Force Academy compete in NCAA Division I athletics, while the
U.S. Coast Guard Academy and the USMMA participate in NCAA
Division III.\4\ The USMMA fields 19 teams across various
sports.\5\
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\1\``Military Service Academies,'' Department of War, September 5,
2025, https://www.war.gov/Contact/Help-Center/Article/Article/2742283/
military-service-academies/.
\2\``About USMMA,'' USMMA, https://www.usmma.edu/about.
\3\``NCAA Membership Directory,'' NCAA, https://www.ncaa.org/
sports/2021/5/3/membership-
directory.aspx.
\4\Ibid.
\5\``U.S. Merchant Marine Academy,'' NCAA, https://web3.ncaa.org/
directory/orgDetail?id=724.
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All Federal service academies are considered Federal
entities because they are established, funded, and operated by
Federal departments.\6\ The USMMA is subject to Federal fiscal
law as it is within the Department of Transportation.\7\
Without statutory authority, the USMMA cannot retain NCAA
funding, freely charge for tickets, or enter into standard
athletic and licensing agreements for ticket sales. The U.S.
Military Academy,\8\ U.S. Naval Academy,\9\ U.S. Air Force
Academy,\10\ and the U.S. Coast Guard Academy\11\ all have
statutory authority to establish or utilize a nonprofit entity
formed solely to support their athletic programs, which makes
the USMMA the only U.S. service academy without such authority.
This bill would create the statutory authority for the USMMA to
establish and utilize a nonprofit organization to support its
NCAA athletic programs.
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\6\Kristy Kamarck, ``Defense Primer: Military Service Academies,''
Congressional Research Service, June 30, 2025, https://
www.congress.gov/crs-product/IF11788.
\7\Ibid.
\8\10 U.S.C. 7462.
\9\10 U.S.C. 8481.
\10\10 U.S.C. 9462.
\11\14 U.S.C. 953.
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Summary of Provisions
S. 3266 would do the following:
Authorize the USMMA to establish a nonprofit
organization to support USMMA athletics.
Establish requirements for the nonprofit's board of
directors and governance.
Authorize the Secretary of Transportation to enter
into contracts and cooperative agreements.
Permit licensing, marketing, and sponsorship
agreements using USMMA trademarks.
Authorize the Secretary of Transportation to accept,
retain, and use funds until expended.
Legislative History
S. 3266 was introduced on November 20, 2025, by Senator
Wicker (for himself and Senator Kelly) and was referred to the
Committee on Commerce, Science, and Transportation of the
Senate. On February 12, 2026, the Committee met in open
Executive Session and, by voice vote, ordered S. 3266 reported
favorably with an amendment (in the nature of a substitute).
H.R. 6961, an identical House bill to S. 3266, was
introduced on January 7, 2026, by Representative Garbarino and
was referred to the Committee on Armed Services of the House of
Representatives. Representatives Suozzi, Scott (GA), and
McDowell were later added as cosponsors.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 3266 would authorize the Department of Transportation
(DOT) to establish a nonprofit corporation to support the
athletic programs of the Merchant Marine Academy. Under the
bill, DOT and the corporation could enter into contracts to
make capital improvements to athletic facilities at the
academy. In addition, the corporation would be authorized to
collect funds from ticketing and licensing agreements as well
as from other athletic institutions and to spend those amounts
without further appropriation. Finally, the bill would require
DOT to issue guidance on implementing a trademark-licensing
program for the academy's athletic department within 180 days
of enactment.
CBO expects that the corporation would be used for
governmental purposes and would be subject to significant
federal control; accordingly, CBO estimates that the cash flows
of the corporation would affect direct spending.\1\ In CBO's
view, the receipt and spending of funds from ticketing,
licensing agreements, and other athletic institutions should be
recorded in the federal budget as changes in direct spending.
CBO expects that the funds available from those activities
would be spent soon after they are collected and thus estimates
that the net change in direct spending from those amounts would
be negligible.
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\1\See Congressional Budget Office, How CBO Determines Whether to
Classify an Activity as Governmental When Estimating Its Budgetary
Effects (June 2017), www.cbo.gov/publication/52803.
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In addition, CBO expects that some funds collected by the
corporation could be used to enter into contracts to obtain
financing for capital improvements to the academy's athletic
facilities. After evaluating the cash flows that would be
available to the corporation to service such financing and
accounting for the probability that the authority would be used
for capital improvements, we estimate that the net increase in
direct spending for those activities would be less than
$500,000 over the 2026-2036 period.
CBO's estimate of direct spending under S. 3266 is subject
to significant uncertainty. In particular, costs under the bill
could be higher or lower than CBO estimates depending on the
number and type of contracts that DOT would enter the nonprofit
corporation into.
S. 3266 would require DOT to establish and advise the
nonprofit corporation and issue guidance on implementing a
trademark-licensing program for the academy's athletic
department. Based on the cost of similar activities, CBO
estimates that implementing those provisions would cost $1
million over the 2026-2031 period. Any related spending would
be subject to the availability of appropriated funds.
The CBO staff contacts for this estimate are Aaron Krupkin
and Emma Uebelhor. The estimate was reviewed by H. Samuel
Papenfuss, Deputy Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
number of persons covered
S. 3266, as reported, would not subject individuals to new
regulations.
economic impact
S. 3266, as reported, is not expected to have any adverse
impact on the Nation's economy. The bill would enable the
USMMA, through the newly established nonprofit entity, to
generate and retain revenue to support its athletic programs.
privacy
S. 3266, as reported, would not have any adverse impact on
the personal privacy of individuals.
paperwork
S. 3266, as reported, would not impose additional paperwork
requirements on businesses. The bill would authorize the
creation of a nonprofit entity to support the athletics
programs of the USMMA and would allow businesses to contract
with that nonprofit entity. The bill may result in increased
administrative and oversight responsibilities for the USMMA and
the Department of Transportation related to financial oversight
of the nonprofit and its support services.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title
This section would provide that the bill may be cited as
the ``USMMA Athletics Act of 2026''.
Section 2. Support for athletic programs of the United States Merchant
Marine Academy
This section would permit the Secretary of Transportation
to establish a nonprofit organization under New York law to
support the athletic programs of the USMMA and would require
that all the stock of the corporation be owned by the United
States.
This section would require the corporation to operate
exclusively for charitable, educational, and civic purposes to
support athletics at the USMMA, and prescribe the corporate
organization for the nonprofit as under section 501(c)(3) of
the Internal Revenue Code of 1986.\12\ That would include a
board of directors to serve without compensation, on which
Department of Transportation employees would be eligible to
serve in their official capacities to solely provide oversight
and advice to the corporation, and not to carry out day-to-day
operations. Employees could hold up to one-third of the seats
on the board. It would further set requirements for the
nonprofit's board of directors and governance and would
authorize the Secretary to enter into contracts and cooperative
agreements, including sole-source authority.
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\12\Public Law 99-514, 100 Stat. 2095.
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This section would also authorize the Secretary to provide
defined support services to the nonprofit organization under
specific circumstances. This section would allow the Secretary,
in consultation with the Administrator of General Services, to
rent or lease real property at the Academy to the nonprofit
organization for purposes related to supporting Academy
athletics, subject to statutory conditions and a 5-year cap.
This section would allow the Secretary to transfer certain
non-appropriated fund assets and liabilities to the nonprofit
organization, excluding real property. It would authorize the
nonprofit organization, subject to the approval of the
Secretary of Transportation, to enter into licensing,
marketing, and sponsorship agreements relating to trademarks
and service marks identifying the USMMA with limitations.
Lastly, this section would authorize the Secretary to
accept and retain funds, supplies, and services from the
nonprofit organization and other sources. It would specify that
funds received under this authority may be retained and remain
available until expended. It would also preserve existing audit
authority by adding new licensing language at the end of
section 109(h) of title 49, U.S. Code, leaving section
109(h)(2) (Audits) intact.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
material is printed in italic, existing law in which no change
is proposed is shown in roman):
UNITED STATES CODE
* * * * * * *
TITLE 46--SHIPPING
* * * * * * *
Subtitle V--Merchant Marine
* * * * * * *
Part B--Merchant Marine Service
* * * * * * *
CHAPTER 513--UNITED STATES MERCHANT MARINE ACADEMY
* * * * * * *
Sec. 51301. * * *
* * * * * * *
Sec. 51328. * * *
Sec. 51329. Support for athletic programs of the United States Merchant
Marine Academy
(a) Corporation for Support Authorized.--
(1) Authority.--The Secretary of Transportation may
establish, in accordance with the laws of the State of
New York, a corporation (in this section referred to as
the ``corporation'') to support the athletic programs
of the United States Merchant Marine Academy.
(2) Ownership.--All stock of the corporation shall be
owned by the United States and held in the name of, and
subject to be voted by, the Secretary.
(3) Purpose.--The corporation shall operate
exclusively for charitable, educational, and civic
purposes to support the athletic programs of the United
States Merchant Marine Academy.
(b) Corporate Organization.--The corporation shall be
organized and operated--
(1) as a nonprofit corporation under section
501(c)(3) of the Internal Revenue Code of 1986;
(2) in accordance with this section; and
(3) pursuant to the laws of the State of New York,
its articles of incorporation, and its bylaws.
(c) Corporate Board of Directors.--
(1) Limitation on compensation.--The members of the
board of directors of the corporation shall serve
without compensation as members of the board, except
for reasonable travel and other related expenses for
attendance at meetings of the board.
(2) Department of transportation employee
membership.--
(A) In general.--The Secretary may authorize
employees of the Department of Transportation
to serve, in their official capacities, as
members of the board of directors of the
corporation--
(i) for the sole purpose of providing
oversight and advice to, and in
coordination with, the corporation; and
(ii) who may not participate in the
day-to-day operations of the
corporation.
(B) Limitation.--Employees serving as a
member of the board of directors pursuant to an
authorization under subparagraph (A) may not
hold more than one-third of the directorships.
(C) Applicability of limitation on
compensation.--An employee serving as a member
of the board of directors shall be subject to
the limitation on compensation under paragraph
(1).
(D) Publication in federal register.--The
Secretary shall publish in the Federal Register
an authorization under subparagraph (A) of an
employee of the Department of Transportation to
participate as a member of the board of
directors.
(d) Contracts and Cooperative Agreements.--
(1) In general.--The Secretary may enter the
corporation into contracts and cooperative agreements
for the purpose of supporting the athletic programs of
the United States Merchant Marine Academy.
(2) Sole-source contracts.--Notwithstanding section
3105 of title 41, United States Code, a contract or
cooperative agreement entered into under paragraph (1)
may be a sole-source contract, subject to section
3304(a) of such title.
(3) Acquisitions.--Notwithstanding chapter 63 of
title 31, United States Code, a cooperative agreement
under this section may be used to acquire property,
services, or travel for the direct benefit or use of
the United States Merchant Marine Academy.
(e) Leases.--For the purpose of supporting the athletic
programs of the United States Merchant Marine Academy, in
consultation with the Administrator of General Services, the
Secretary may rent or lease to the corporation any real
property located at the United States Merchant Marine Academy--
(1) under such terms and conditions as are deemed
advisable;
(2) for a period not exceeding 5 years;
(3) so long as such real property is not required for
immediate use by the United States Merchant Marine
Academy; and
(4) so long as all proceeds from such rental or lease
be retained and expended in accordance with subsection
(j).
(f) Support Services.--
(1) Authority.--To the extent required by a contract
or cooperative agreement under subsection (d), the
Secretary may provide support services to the
corporation while the corporation conducts support
activities at the United States Merchant Marine Academy
only if the Secretary determines that the provision of
such services is essential for the support of the
athletic programs of the United States Merchant Marine
Academy.
(2) No liability of the united states.--The provision
of support services under paragraph (1) may not result
in any liability for the United States to the
corporation.
(3) Support services defined.--In this subsection,
the term ``support services'' includes utilities,
office furnishings and equipment, communications
services, records staging and archiving, audio and
video support, and security systems, in conjunction
with the leasing or licensing of property.
(g) Transfers From Nonappropriated Fund Operation.--
(1) In general.--Except as provided in paragraph (2),
the Secretary may, subject to the acceptance of the
corporation, transfer to the corporation all title to
and ownership of the assets and liabilities of the
Department of Transportation nonappropriated fund
instrumentality, the function of which includes
providing support for the athletic programs of the
United States Merchant Marine Academy, including bank
accounts and financial reserves in the accounts of such
fund instrumentality, equipment, supplies, and other
personal property.
(2) Limitation.--In making a transfer under paragraph
(1), the Secretary may not transfer any interest in
real property.
(h) Acceptance of Support.--
(1) In general.--Notwithstanding section 1342 of
title 31, United States Code, the Secretary may accept
from the corporation funds, supplies, and services for
the support of the athletic programs of the United
States Merchant Marine Academy.
(2) Employees of the corporation.--For purposes of
this section, employees or personnel of the corporation
are not employees of the United States.
(3) Funds received from other sources.--The Secretary
may charge fees for the support of athletic programs of
the United States Merchant Marine Academy. To support
the athletic programs of the United States Merchant
Marine Academy, the Secretary may accept funds from the
National Collegiate Athletic Association, funds from
athletic conferences, game guarantees from other
educational institutions, fees for ticketing and
licensing, and any other consideration provided
incidental to the execution of the athletic programs of
the United States Merchant Marine Academy.
(4) Limitation.--The Secretary shall ensure that
contributions under this subsection and expenditure of
funds pursuant to subsection (j) do not--
(A) reflect unfavorably on the ability of the
Department of Transportation, or any employee
of the Department of Transportation, to carry
out any responsibility or duty of the
Department in a fair and objective manner; or
(B) compromise the integrity or appearance of
integrity of any program of the Department of
Transportation, or any individual involved in
such a program.
(i) Trademarks and Service Marks.--
(1) Licensing, marketing, and sponsorship
agreements.--Subject to paragraph (2), a contract or
cooperative agreement under subsection (d) may,
consistent with section 109(h)(2) of title 49, United
States Code, include an authorization for the
corporation to enter into licensing, marketing, and
sponsorship agreements (subject to the approval of the
Secretary) relating to trademarks and service marks
identifying the United States Merchant Marine Academy.
(2) Limitations.--The corporation may not enter into
any licensing, marketing, or sponsorship agreement
pursuant to authority provided under paragraph (1)
that--
(A) may reflect unfavorably on the ability of
the Department of Transportation, or any
employee of the Department of Transportation,
to carry out any responsibility or duty of the
Department in a fair and objective manner; or
(B) the Secretary determines involves use of
the trademark or service mark would compromise
the integrity or appearance of integrity of any
program of the Department of Transportation or
any individual involved in such a program.
(j) Retention and Use of Funds.--Funds received by the
Secretary under this section may be retained for use to support
the athletic programs of the United States Merchant Marine
Academy and shall remain available until expended.
* * * * * * *
TITLE 49--TRANSPORTATION
* * * * * * *
Subtitle I--Department of Transportation
* * * * * * *
CHAPTER 1--ORGANIZATION
* * * * * * *
Sec. 101. * * *
* * * * * * *
Sec. 109. Maritime Administration
(a) * * *
(b) * * *
(c) * * *
(d) * * *
(e) * * *
(f) * * *
(g) * * *
(h) Contracts, Cooperative Agreements, and Audits.--
(1) Contracts and cooperative agreements.--In the
same manner that a private corporation may make a
contract within the scope of its authority under its
charter, the Secretary may make contracts and
cooperative agreements for the United States Government
and disburse amounts to--
(A) carry out the Secretary's duties and
powers under this section, subtitle V of title
46, and all other Maritime Administration
programs; and
(B) protect, preserve, and improve collateral
held by the Secretary to secure indebtedness.
(2) Audits.--The financial transactions of the
Secretary under paragraph (1) shall be audited by the
Comptroller General. The Comptroller General shall
allow credit for an expenditure shown to be necessary
because of the nature of the business activities
authorized by this section or subtitle V of title 46.
At least once a year, the Comptroller General shall
report to Congress any departure by the Secretary from
this section or subtitle V of title 46.
(3) Licensing of intellectual property.--
(A) Authority.--The Secretary may license
trademarks and service marks owned or
controlled by the Secretary with respect to the
United States Merchant Marine Academy and may
retain and expend fees received from such
licensing in accordance with this paragraph.
(B) Designated marks.--The Secretary shall
designate the trademarks and service marks with
respect to which the Secretary will exercise
the authority to retain licensing fees under
this paragraph.
(C) Use of fees.--The Secretary shall use
fees retained under this paragraph for the
following purposes:
(i) For payment of costs incurred by
the Secretary of securing trademark
registrations and of operating the
licensing program under this paragraph.
(ii) For support of athletic programs
and recruiting activities of the United
States Merchant Marine Academy under
the jurisdiction of the Secretary, to
the extent (if any) that the total
amount of the licensing fees available
under this section for a fiscal year
exceed the total amount needed for such
fiscal year under paragraph (1).
(D) Availability.--Fees received in a fiscal
year and retained under this paragraph shall be
available until expended.
(E) Definitions.--In this paragraph, the
terms ``trademark'' and ``service mark'' have
the meanings given such terms, respectively, in
section 45 of the Act of July 5, 1946 (commonly
referred to as the ``Trademark Act of 1946'';
15 U.S.C. 1127).
(F) Guidance.--Not later than 180 days after
the date of enactment of the USMMA Athletics
Act of 2026, the Secretary shall issue guidance
to implement a trademark and service mark
licensing program under this paragraph.
(i) * * *
(j) * * *
* * * * * * *
[all]