What This Bill Does
The USMMA Athletics Act of 2025 would let the Secretary of Transportation create a New York nonprofit corporation to support the United States Merchant Marine Academy’s athletic programs. The corporation would be owned by the United States, run as a 501(c)(3), and could receive contracts, cooperative agreements, leases of certain academy property, donated funds, and trademark-licensing revenue. The bill also lets the Secretary accept support from the NCAA, athletic conferences, ticketing and licensing fees, and other related sources. Any money retained under the bill would stay available until spent.
- Lets the Secretary of Transportation create a New York nonprofit corporation to support USMMA athletics.
- Corporation stock would be owned by the United States and voted by the Secretary.
- Allows leases of USMMA real property for up to 5 years if the property is not needed immediately.
- Permits acceptance of NCAA funds, athletic conference funds, game guarantees, ticketing fees, and licensing revenue.
- Amends 49 U.S.C. 109(h) so trademark fees can be retained and used for academy recruiting and program costs.
Who This Bill Affects
For most people, this bill would have little direct day-to-day effect, because it is focused on the United States Merchant Marine Academy’s athletic programs. For USMMA cadets, athletics staff, alumni, and donors, it could create new funding channels through a nonprofit corporation, leasing of academy property for up to 5 years, and the ability to keep certain support funds available until spent. It could also increase recruiting support by allowing trademark-licensing fees to be used for that purpose once registration and program costs are covered.
See how this bill affects you — sign in for a personalized analysisCBO Cost Estimate
May 21, 2026CBO published a cost estimate on May 21, 2026, for S. 3266, the USMMA Athletics Act of 2026, as ordered reported by the Senate Committee on Commerce, Science, and Transportation on February 12, 2026. Based on the title and description alone, the bill appears to concern athletics at the U.S. Merchant Marine Academy; detailed budget effects should be read in the linked CBO report.
Full CBO report →Who Supports & Opposes This
- Merchant Marine Academy cadets and athletic staff They would likely see the bill as a way to stabilize team funding, improve facilities and services, and reduce dependence on ad hoc support. The leasing, contracting, and retained-funds authority could make athletics operations more predictable.
- Alumni and donors They may support a structure that channels outside gifts and sponsorship-style revenue directly into academy athletics. A nonprofit corporation and retained licensing fees can make it easier to contribute money that stays dedicated to the program.
- Transportation Department officials overseeing USMMA They could argue the bill gives them flexible tools to support athletics while keeping federal oversight through the Secretary and board controls. The bill’s conflict-of-interest limits and requirement that proceeds be retained for athletics may appeal to administrators seeking accountability.
- Fiscal conservatives and federal budget watchdogs They may object that the bill creates new federal involvement in a nonprofit and allows the Secretary to accept and retain funds outside normal appropriations. Even if no direct dollar amount is authorized, the structure could be viewed as expanding federal administrative commitments.
- Some procurement and ethics advocates They may worry about sole-source contracts, cooperative agreements, and sponsorship or licensing arrangements creating favoritism or appearance-of-impropriety concerns. The bill tries to limit that risk, but critics could say the safeguards still leave room for discretion.
- Stakeholders concerned about academy land use They may resist leasing academy real property for outside support activities, even for up to 5 years. Their concern would be that athletic fundraising uses could compete with immediate academy needs or create pressure on campus space.
Key Implications
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““The Secretary of Transportation may establish... a corporation””
This gives the federal government a dedicated nonprofit vehicle to support USMMA athletics. In practice, that means fundraising and program support can be organized through a separate entity rather than only through the academy’s normal federal structure.
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““for a period not exceeding 5 years””
Any lease of academy property to the corporation is temporary and bounded. That reduces the chance of long-term privatization, but it still allows campus space to be used for athletic-support purposes when not needed immediately by the academy.
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““sole-source contract””
The bill explicitly allows contracts or cooperative agreements to be awarded without full competitive sourcing in some cases, subject to existing federal law. That can speed up support work, but it also raises the need for careful oversight.
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““Funds received by the Secretary under this section may be retained””
Money collected under the bill does not have to be returned to the Treasury immediately; it can stay available until spent. For USMMA athletics, that could make funding more stable across fiscal years.
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““used for recruiting activities””
If trademark licensing fees exceed the costs of registrations and running the licensing program, the excess can be used for recruiting. That ties the academy’s brand value directly to efforts to attract future cadets.
Latest Status
June 15, 2026
Placed on Senate Legislative Calendar under General Orders. Calendar No. 434.
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Ask AI about this billData sourced from api.congress.gov.