§53406 Payments

Summary

The Secretary must pay a set annual amount for each vessel under an operating agreement, if money is available and the other rules here are met. The yearly amounts per vessel are: $8,160,000 for FY2025–2026; $8,380,000 for FY2027–2028; $8,606,000 for FY2029–2030; $8,839,000 for FY2031–2032; $9,078,000 for FY2033–2034; $9,323,000 for FY2035–2036; $9,574,000 for FY2037–2038; and $9,833,000 for FY2039–2040. Each year’s payment is split into 12 equal monthly payments, sent at the end of each month. A participant must certify, under rules the Secretary sets, that the vessel was and will be operated at least 320 days in the fiscal year; days in drydock, survey, inspection, or repair count as days of operation. No payment will be made for a vessel that is not run under the agreement, is over 20 years old, or is also operating under a different program at the same time. Payments generally cannot be cut for carrying military or other preference cargoes or for days chartered to the U.S. government, but no payment is allowed for any day the vessel carries more than 7,500 tons of civilian bulk preference cargo. Payments are reduced pro rata for each day under the 320-day requirement. Participants who engage in noncontiguous domestic trade do not get payments, unless they are U.S. citizens who meet the 75% ownership rule. “Participates in noncontiguous domestic trade” means owning, chartering, or operating a vessel that moves cargo between the contiguous 48 States and Alaska, Hawaii, or Puerto Rico (other than parts of Alaska north of the Arctic Circle).