H. Rpt. 119-563 accompanies the "Defending American Property Abroad Act of 2026" — legislation that falls within the Transportation and Infrastructure Committee's jurisdiction. Committee reports serve as the official legislative history of a bill, documenting what the legislation would do and why the committee recommends passage. Reports of this kind include the committee's section-by-section analysis, any amendments adopted during markup, the Congressional Budget Office cost estimate, dissenting views from minority members, and the legal basis for the legislation. Courts and agencies consult committee reports when interpreting enacted laws, making these documents important beyond the immediate legislative moment.
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House Report 119-563 - DEFENDING AMERICAN PROPERTY ABROAD ACT OF 2026
[House Report 119-563]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 119-563
======================================================================
DEFENDING AMERICAN PROPERTY ABROAD ACT OF 2026
_______
March 20, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Graves, from the Committee on Transportation and
Infrastructure, submitted the following
R E P O R T
[To accompany H.R. 7084]
[Including cost estimate of the Congressional Budget Office]
The Committee on Transportation and Infrastructure, to whom
was referred the bill (H.R. 7084) to amend title 46, United
States Code, with respect to the types of vessels that may
enter or operate in navigable waters of the United States or
transfer cargo in any port or place under the jurisdiction of
the United States, and for other purposes, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
CONTENTS
Page
Purpose of Legislation........................................... 2
Background and Need for Legislation.............................. 3
Hearings......................................................... 3
Legislative History and Consideration............................ 4
Committee Votes.................................................. 4
Committee Oversight Findings and Recommendations................. 5
New Budget Authority and Tax Expenditures........................ 5
Congressional Budget Office Cost Estimate........................ 5
Performance Goals and Objectives................................. 6
Duplication of Federal Programs.................................. 7
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 7
Federal Mandates Statement....................................... 7
Preemption Clarification......................................... 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Section-by-Section Analysis of the Legislation................... 7
Changes in Existing Law Made by the Bill, as Reported............ 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Defending American Property Abroad Act
of 2026''.
SEC. 2. CONDITION FOR ENTRY INTO PORTS IN THE UNITED STATES.
Section 70022 of title 46, United States Code, is amended--
(1) in subsection (a)(2)(A)--
(A) in clause (i)--
(i) by striking ``subsection (b)(1)'' and
inserting ``subsection (b)(1)(A)''; and
(ii) in subclause (II) by striking ``; or''
and inserting a semicolon;
(B) in clause (ii)--
(i) by striking ``subsection (b)(2)'' and
inserting ``subsection (b)(1)(B)''; and
(ii) by striking the period at the end and
inserting ``; or''; and
(C) by adding at the end the following:
``(iii) vessel described in subsection (b)(1)
in the case of--
``(I) an emergency being experienced
by a vessel or an individual on the
vessel; or
``(II) a vessel authorized by the
owner, as described in subsection
(b)(1)(C)(ii), to transit the
facilities described in subsection
(b)(1)(C).''; and
(2) in subsection (b)--
(A) in paragraph (2) by striking the period at the
end and inserting ``; or'';
(B) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B) (and by moving the margins of
such subparagraphs accordingly);
(C) by striking ``A vessel referred'' and inserting
the following:
``(1) In general.--A vessel referred''; and
(D) by adding at the end the following:
``(C) a vessel that has transited a port, harbor, or
marine terminal, that at the time of such transit--
``(i) was located within the territory of a
Western Hemisphere country that has in effect a
free trade agreement with the United States;
``(ii) was accessible only through land that
is owned, held, or controlled, directly or
indirectly, by a United States person; and
``(iii) was designated by the President under
paragraph (2), and has not had such designation
removed under paragraph (3).
``(2) Designation.--The President may designate a port,
harbor, or marine terminal under this subsection if an agency
or official of the government of the Western Hemisphere foreign
trade partner has--
``(A) nationalized, or expropriated the port, harbor,
or marine terminal, owned, held, or controlled,
directly or indirectly, by a United States person; or
``(B) taken any other action that has the effect of
expropriating or nationalizing that port, harbor, or
marine terminal, or land providing the exclusive access
to that port, harbor, or marine terminal, as described
in paragraph (1)(C)(ii), as long as the matter is not
the subject of a currently pending arbitration under a
free trade agreement described in paragraph (1)(C)(i).
``(3) Removal of designation.--The President shall remove the
designation of a port, harbor, or marine terminal made under
paragraph (2) if the President determines that--
``(A) the conditions set forth in paragraph (2) are
no longer met;
``(B) the Western Hemisphere country has restored
ownership of the property of the United States person
and terminated any measures that had the effect of
seizing ownership or possession of that property;
``(C) the Western Hemisphere country has provided
adequate and effective compensation for such property
in convertible foreign exchange or other mutually
acceptable compensation equivalent to the full value
thereof, as required by international law; or
``(D) the dispute has otherwise been resolved to the
satisfaction of the President.''.
Purpose of Legislation
The purpose of H.R. 7084, as amended, is to amend title 46,
United States Code, with respect to the types of vessels that
may enter or operate in navigable waters of the United States
or transfer cargo in any port or place under the jurisdiction
of the United States, and for other purposes.
Background and Need for Legislation
The United States is a maritime Nation with 95 percent of
all cargo entering through the Marine Transportation System
(MTS).\1\ Cargo activity at United States ports accounts for 26
percent of the United States' gross domestic product (GDP),
generating nearly $5.4 trillion in total economic activity, and
supporting 31 million direct and indirect jobs.\2\ Given the
importance of the international maritime supply chain to our
domestic economy, United States companies and persons rely on
vessels and facilities at foreign ports to move their cargo to
United States markets.
---------------------------------------------------------------------------
\1\U.S. Environmental Protection Agency, Ports Primer: 2.1 The Role
of Ports, available at https://www.epa.gov/ports-initiative/ports-
primer-21-role-ports.
\2\U.S. Dep't of Homeland Security, Fact Sheet: DHS Moves to
Improve Supply Chain Resilience and Cybersecurity Within Our Maritime
Critical Infrastructure, available at https://www.dhs.gov/archive/news/
2024/02/21/fact-sheet-dhs-moves-improve-supply-chain-resilience-and-
cybersecurity-within-our.
---------------------------------------------------------------------------
To ensure that the property rights of United States
companies and persons are maintained abroad, H.R. 7084, as
amended, provides the President the authority to limit the
entry of vessels into the United States who have called at
ports, harbors, or marine terminals that were controlled by a
United States person and have been nationalized or expropriated
by an agency or official of the government of a Western
Hemisphere trading partner.
For example, in 1986, a United States company opened a
quarry near Playa del Carmen, Mexico, to supply crushed
limestone for infrastructure and other construction projects to
United States markets. To distribute those materials, the
company built a deep-water port on the Yucatan Peninsula in
Mexico, and, over decades, also invested in a United States
distribution network. On September 23, 2024, the Government of
Mexico decreed the property a Naturally Protected Area (NPA),
limiting productive use of the property. Subsequently, the
Mexican Government has opened additional quarries in the area
operated by Mexican companies. The bill dissuades similar
actions by limiting the entry into the United States of vessels
that have called on ports, harbors, or marine terminals that
were once controlled by a United States person or entity, and
have been subsequently nationalized or expropriated by an
agency or official of the government of a Western Hemisphere
trading partner. Under the bill, such vessels may resume
calling on United States ports once the land in question is
paid for or returned to its rightful owner.
The goal of H.R. 7084, as amended, is to protect the
interest of American property owners from wrongful seizure by a
foreign government. The protection of property rights of
American companies abroad is a crucial component for both
economic growth and national security.
Hearings
For the purposes of rule XIII, clause 3(c)(6)(A) of the
119th Congress--
The following hearing was used to develop or consider H.R.
7084: The Subcommittee on Coast Guard and Maritime
Transportation held a hearing on February 5, 2025 entitled
``America Builds: Maritime Infrastructure.'' The hearing
examined the importance of domestic ports, infrastructure
safety and security issues, and current funding and investment
needs. The subcommittee received testimony from Mr. Paul
Anderson, President and Chief Executive Officer, Port Tampa
Bay, Mr. Joe Rella, President, St. Johns Ship Building Inc. (on
behalf of the Shipbuilders Council of America), Mr. Tom
Reynolds, Chief Strategy Officer, SEASATS (on behalf of
Association for Uncrewed Vehicle Systems International, and Mr.
Brian Schoeneman, Political and Legislative Director, Seafarers
International Union of North America (on behalf of USA
Maritime).
Legislative History and Consideration
H.R. 7084, the ``Defending American Property Abroad Act of
2026,'' was introduced in the United States House of
Representatives on January 15, 2026, by Representative August
Pfluger (R TX) and referred to the Committee on Transportation
and Infrastructure. Within the Committee on Transportation and
Infrastructure, H.R. 7084 was referred to the Subcommittee
Coast Guard and Maritime Transportation. The Subcommittee on
Coast Guard and Maritime Transportation was discharged from
further consideration of H.R. 7084 on January 21, 2026.
The Committee considered H.R. 7084 on January 21, 2026, and
ordered the measure to be reported to the House with a
favorable recommendation, with amendment, by recorded vote of
36 yeas to 22 nays.
An Amendment in the Nature of a Substitute to H.R. 7084,
offered by Mr. Mann of Kansas; was AGREED TO by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against.
The vote was as follows:
Vote: 67
Measure: H.R. 7084, as amended
On: Final passage
Yea 36; Nay 22
Present 0; Not Voting 8
----------------------------------------------------------------------------------------------------------------
Member Vote Member Vote
----------------------------------------------------------------------------------------------------------------
Mr. Graves of MO................................ Y Mr. Larsen of WA.................. N
Mr. Crawford.................................... Y Ms. Norton........................ ............
Mr. Webster of FL............................... Y Mr. Nadler........................ N
Mr. Massie...................................... Y Mr. Garamendi..................... N
Mr. Perry....................................... Y Mr. Johnson of GA................. N
Mr. Babin....................................... Y Mr. Carson........................ N
Mr. Rouzer...................................... Y Ms. Titus......................... ............
Mr. Bost........................................ Y Mr. Huffman....................... N
Mr. Westerman................................... Y Ms. Brownley...................... Y
Mr. Mast........................................ ............ Ms. Wilson of FL.................. ............
Mr. Stauber..................................... Y Mr. DeSaulnier.................... N
Mr. Burchett.................................... Y Mr. Carbajal...................... Y
Mr. Johnson of SD............................... Y Mr. Stanton....................... Y
Mr. Van Drew.................................... ............ Ms. Davids of KS.................. N
Mr. Nehls....................................... ............ Mr. Garcia of IL.................. N
Mr. Mann........................................ Y Mr. Pappas........................ N
Mr. Owens....................................... Y Mr. Moulton....................... N
Mr. Burlison.................................... Y Ms. Strickland.................... N
Mr. Collins..................................... Y Mr. Ryan.......................... N
Mr. Ezell....................................... Y Ms. Hoyle of OR................... N
Mr. Kiley....................................... Y Mrs. Sykes........................ N
Mr. Fong........................................ Y Ms. Scholten...................... N
Mr. Wied........................................ Y Mrs. Foushee...................... N
Mr. Barrett..................................... Y Mr. Deluzio....................... N
Mr. Begich...................................... Y Mr. Garcia of CA.................. ............
Mr. Bresnahan................................... Y Ms. Pou........................... N
Mr. Hurd........................................ Y Ms. McDonald Rivet................ N
Mr. Shreve...................................... Y Ms. Friedman...................... N
Mr. McDowell.................................... Y Ms. Gillen........................ Y
Mr. Taylor...................................... Y Mr. Figures....................... Y
Mr. Knott....................................... ............ Mr. Frost......................... N
Ms. King-Hinds.................................. Y
Mr. Kennedy..................................... Y
Mr. Onder....................................... Y
Mr. Patronis.................................... Y
----------------------------------------------------------------------------------------------------------------
Committee Oversight Findings and Recommendations
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
New Budget Authority and Tax Expenditures
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives does not apply where a cost estimate and
comparison prepared by the Director of the Congressional Budget
Office under section 402 of the Congressional Budget Act of
1974 has been timely submitted prior to the filing of the
report and is included in the report. Such a cost estimate is
included in this report.
Congressional Budget Office Cost Estimate
With respect to the requirement of clause 3(c)(3) of rule
XIII of the Rules of the House of Representatives and section
402 of the Congressional Budget Act of 1974, the Committee has
received the enclosed cost estimate for H.R. 7084, as amended,
from the Director of the Congressional Budget Office:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 7084 would amend the criteria used to determine
whether a vessel may operate in U.S. waters or transfer cargo
at a U.S. port. Specifically, the bill would authorize those
activities for vessels that are otherwise prohibited under
current law if the vessels are experiencing an emergency. In
addition, the bill would prohibit entry by vessels that have
accessed foreign ports or marine terminals previously
controlled by U.S. citizens and later nationalized or
expropriated by certain foreign governments, as determined by
the Department of State.
Vessels that unlawfully enter U.S. ports are subject to
civil penalties assessed by the Coast Guard, which are recorded
in the budget as revenues. Enacting H.R. 7084 could affect the
amount of civil penalty collections by changing the number of
vessels authorized to enter the United States. Based on the
number of expected cases, CBO estimates that the change in
revenues under the bill would total less than $500,000 over the
2026-2036 period.
CBO further estimates that implementing the administrative
requirements in H.R. 7084 would cost the Coast Guard and the
Department of State less than $500,000 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
(for the Coast Guard) and Sunita D'Monte (for the Department of
State). The estimate was reviewed by H. Samuel Papenfuss,
Deputy Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goal and objective of this legislation is to
strengthen the property rights of U.S. persons.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 7084 establishes or reauthorizes a program of the
Federal government known to be duplicative of another Federal
program, a program that was included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with clause 9 of rule XXI of the Rules of the
House of Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule
XXI.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Preemption Clarification
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee finds that H.R. 7084 does not
preempt any state, local, or tribal law.
Advisory Committee Statement
No advisory committees within the definition of Section
5(b) of the appendix to Title 5, United States Code, are
created by this legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section provides that the Act may be cited as the
``Defending American Property Abroad Act of 2026''.
Section 2. Condition for entry into ports in the United States
This section amends section 70022 of title 46, United
States Code, to permit the President to prohibit entry and
operation of a vessel that has transited a port, harbor, or
marine terminal that was held or controlled by a United States
person but has since been determined by the President to have
been nationalized, expropriated by a Western Hemisphere
country, with which the United States has a free trade
agreement.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, 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
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
TITLE 46, UNITED STATES CODE
* * * * * * *
SUBTITLE VII--SECURITY AND DRUG ENFORCEMENT
* * * * * * *
CHAPTER 700--PORTS AND WATERWAYS SAFETY
* * * * * * *
SUBCHAPTER III--CONDITION FOR ENTRY INTO PORTS IN THE UNITED STATES
* * * * * * *
Sec. 70022. Prohibition on entry and operation
(a) Prohibition.--
(1) In general.--Except as otherwise provided in this
section, no vessel described in subsection (b) may
enter or operate in the navigable waters of the United
States or transfer cargo in any port or place under the
jurisdiction of the United States.
(2) Limitations on application.--
(A) In general.--The prohibition under
paragraph (1) shall not apply with respect to--
(i) a vessel described in [subsection
(b)(1)] subsection (b)(1)(A), if the
Secretary of State determines that--
(I) the vessel is owned or
operated by or on behalf of a
country the government of which
the Secretary of State
determines is closely
cooperating with the United
States with respect to
implementing the applicable
United Nations Security Council
resolutions (as such term is
defined in section 3 of the
North Korea Sanctions and
Policy Enhancement Act of
2016); or
(II) it is in the national
security interest not to apply
the prohibition to such
vessel[; or];
(ii) a vessel described in
[subsection (b)(2)] subsection
(b)(1)(B), if the Secretary of State
determines that the vessel is no longer
registered as described in that
subsection[.]; or
(iii) vessel described in subsection
(b)(1) in the case of--
(I) an emergency being
experienced by a vessel or an
individual on the vessel; or
(II) a vessel authorized by
the owner, as described in
subsection (b)(1)(C)(ii), to
transit the facilities
described in subsection
(b)(1)(C).
(B) Notice.--Not later than 15 days after
making a determination under subparagraph (A),
the Secretary of State shall submit to the
Committee on Foreign Affairs and the Committee
on Transportation and Infrastructure of the
House of Representatives and the Committee on
Foreign Relations and the Committee on
Commerce, Science, and Transportation of the
Senate written notice of the determination and
the basis upon which the determination was
made.
(C) Publication.--The Secretary of State
shall publish a notice in the Federal Register
of each determination made under subparagraph
(A).
(b) Vessels Described.--[A vessel referred]
(1) In general._A vessel referred to in subsection
(a) is a foreign vessel for which a notice of arrival
is required to be filed under section 70001(a)(5), and
that--
[(1)] (A) is on the most recent list of
vessels published in the Federal Register under
subsection (c)(2); or
[(2)] (B) more than 180 days after the
publication of such list, is knowingly
registered, pursuant to the 1958 Convention on
the High Seas entered into force on September
30, 1962, by a government the agents or
instrumentalities of which are maintaining a
registration of a vessel that is included on
such list[.]; or
(C) a vessel that has transited a port,
harbor, or marine terminal, that at the time of
such transit--
(i) was located within the territory
of a Western Hemisphere country that
has in effect a free trade agreement
with the United States;
(ii) was accessible only through land
that is owned, held, or controlled,
directly or indirectly, by a United
States person; and
(iii) was designated by the President
under paragraph (2), and has not had
such designation removed under
paragraph (3).
(2) Designation.--The President may designate a port,
harbor, or marine terminal under this subsection if an
agency or official of the government of the Western
Hemisphere foreign trade partner has--
(A) nationalized, or expropriated the port,
harbor, or marine terminal, owned, held, or
controlled, directly or indirectly, by a United
States person; or
(B) taken any other action that has the
effect of expropriating or nationalizing that
port, harbor, or marine terminal, or land
providing the exclusive access to that port,
harbor, or marine terminal, as described in
paragraph (1)(C)(ii), as long as the matter is
not the subject of a currently pending
arbitration under a free trade agreement
described in paragraph (1)(C)(i).
(3) Removal of designation.--The President shall
remove the designation of a port, harbor, or marine
terminal made under paragraph (2) if the President
determines that--
(A) the conditions set forth in paragraph (2)
are no longer met;
(B) the Western Hemisphere country has
restored ownership of the property of the
United States person and terminated any
measures that had the effect of seizing
ownership or possession of that property;
(C) the Western Hemisphere country has
provided adequate and effective compensation
for such property in convertible foreign
exchange or other mutually acceptable
compensation equivalent to the full value
thereof, as required by international law; or
(D) the dispute has otherwise been resolved
to the satisfaction of the President.
(c) Information and Publication.--The Secretary of the
department in which the Coast Guard is operating, with the
concurrence of the Secretary of State, shall--
(1) maintain timely information on the registrations
of all foreign vessels over 300 gross tons that are
known to be--
(A) owned or operated by or on behalf of the
Government of North Korea or a North Korean
person;
(B) owned or operated by or on behalf of any
country in which a sea port is located, the
operator of which the President has identified
in the most recent report submitted under
section 205(a)(1)(A) of the North Korea
Sanctions and Policy Enhancement Act of 2016;
or
(C) owned or operated by or on behalf of any
country identified by the President as a
country that has not complied with the
applicable United Nations Security Council
resolutions (as such term is defined in section
3 of such Act); and
(2) periodically publish in the Federal Register a
list of the vessels described in paragraph (1).
(d) Notification of Governments.--
(1) In general.--The Secretary of State shall notify
each government, the agents or instrumentalities of
which are maintaining a registration of a foreign
vessel that is included on a list published under
subsection (c)(2), not later than 30 days after such
publication, that all vessels registered under such
government's authority are subject to subsection (a).
(2) Additional notification.--In the case of a
government that continues to maintain a registration
for a vessel that is included on such list after
receiving an initial notification under paragraph (1),
the Secretary shall issue an additional notification to
such government not later than 120 days after the
publication of a list under subsection (c)(2).
(e) Notification of Vessels.--Upon receiving a notice of
arrival under section 70001(a)(5) from a vessel described in
subsection (b), the Secretary of the department in which the
Coast Guard is operating shall notify the master of such vessel
that the vessel may not enter or operate in the navigable
waters of the United States or transfer cargo in any port or
place under the jurisdiction of the United States, unless--
(1) the Secretary of State has made a determination
under subsection (a)(2); or
(2) the Secretary of the department in which the
Coast Guard is operating allows provisional entry of
the vessel, or transfer of cargo from the vessel, under
subsection (f).
(f) Provisional Entry or Cargo Transfer.--Notwithstanding any
other provision of this section, the Secretary of the
department in which the Coast Guard is operating may allow
provisional entry of, or transfer of cargo from, a vessel, if
such entry or transfer is necessary for the safety of the
vessel or persons aboard.
(g) Right of Innocent Passage and Right of Transit Passage.--
This section shall not be construed as authority to restrict
the right of innocent passage or the right of transit passage
as recognized under international law.
* * * * * * *
[all]