Private funding for merchant academy athletics

Full Title:
USMMA Athletics Act of 2026

Summary#

This bill lets the Secretary of Transportation create a nonprofit corporation to support the athletic programs of the United States Merchant Marine Academy (USMMA). The new corporation would be owned by the United States, run as a tax-exempt nonprofit, and allowed to raise and keep money for USMMA athletics. The bill also gives the Secretary new authority to license academy trademarks and keep licensing fees for specified uses.

  • Main change: Authorizes a Secretary-controlled, nonprofit corporation (organized under New York law and as a 501(c)(3)) to support USMMA athletics.
  • Allows DOT employees to serve on the corporation’s board in official roles, but no more than one-third of seats. Board members serve unpaid except for travel and related expenses.
  • Permits contracts and cooperative agreements to support athletics, including certain sole-source contracts and use of cooperative agreements to acquire property, services, or travel for the Academy.
  • Allows the Secretary to lease Academy real property to the corporation (up to 5 years) and to transfer nonappropriated fund assets (not real property) to the corporation.
  • Authorizes acceptance of funds from NCAA, athletic conferences, ticketing, licensing, game guarantees, and other related sources, and lets the Secretary retain and use those funds for athletics.
  • Amends existing law to let the Secretary license USMMA trademarks, retain fees, and use fees for trademark costs and, after costs, for recruiting activities.

What it means for you#

  • Students and athletes at USMMA: Could see more privately raised money for teams, equipment, travel, tickets, and recruiting if the corporation raises funds or licenses marks.
  • USMMA administration: Gains a new vehicle to raise and hold money specifically for athletics. The Academy could enter agreements with the corporation for property use and support services.
  • Department of Transportation employees: The Secretary may assign DOT employees to the corporation’s board in official roles for oversight and advice. These employees would not be paid board salaries beyond travel or related expenses.
  • Potential donors, sponsors, and licensees: May be able to give money, buy sponsorships, or license USMMA marks through the corporation. The bill allows a broad list of sources (NCAA, conferences, ticketing, sponsorships, etc.).
  • Businesses and vendors: The corporation may enter contracts, including some sole-source contracts, to support athletics. This could speed some purchases but reduce competition in some cases.
  • General public / taxpayers: The bill lets fees and donations be retained and used for athletics rather than returned to the Treasury. The bill does not specify any direct new taxpayer appropriation for these athletics activities.

Expenses#

No publicly available information.

  • The bill requires a corporation to be formed and run. That could create administrative and staffing costs for the Department of Transportation and the new corporation, but no estimate is provided.
  • The corporation may hold and spend funds for athletics. The bill does not state any new federal appropriation or provide a fiscal estimate.
  • Allowing sole-source contracts and transfers of nonappropriated fund assets could change how money is spent, but the bill gives no cost numbers.
  • Leasing Academy property to the corporation could generate or retain rental proceeds for athletics; the fiscal effect is not quantified.

Proponents' View#

  • The bill appears intended to increase and simplify private support for USMMA athletics.
  • Supporters may argue this will let the Academy raise money for teams, facilities, travel, and recruiting more easily.
  • Allowing trademark licensing could create a steady revenue stream for athletics and pay for trademark costs and recruiting.
  • The board and DOT oversight provisions are designed to keep the corporation connected to the Academy and under official supervision.

Opponents' View#

  • One concern is that the bill allows sole-source contracting. This could reduce competitive bidding for some goods and services.
  • The bill permits DOT employees to serve on the board. It does not fully explain how conflicts of interest or the appearance of partiality will be prevented beyond general limits.
  • It is unclear how the corporation will qualify for and maintain 501(c)(3) tax-exempt status given that all stock would be owned by the United States. The bill does not explain tax treatment or IRS procedures.
  • The bill allows private money and sponsorships to be accepted and retained for athletics. While it includes language to avoid compromising DOT integrity, it does not give detailed rules or oversight mechanisms for evaluating sponsors or deals.
  • Important details are missing or vague, such as how the corporation’s board is chosen beyond DOT employee limits, how licensing approvals will work in practice, and what reporting or audit rules will apply.