New Rules Set for U.S. Tanker Security Program Payments
Published Date: 6/23/2026
Rule
Summary
The Tanker Security Program (TSP) helps keep a fleet of U.S.-flagged tankers ready for national defense and security needs. This final rule updates the program based on feedback and sets new rules for which tankers qualify, including limits on government charters. Starting July 23, 2026, eligible tanker owners can receive payments to support their operations, boosting America’s maritime strength and economy.
Analyzed Economic Effects
9 provisions identified: 5 benefits, 4 costs, 0 mixed.
Multi‑Million Dollar Operator Stipends
If you operate an eligible U.S.-flag product tanker, you can receive an annual stipend. The rule states current payments at $8,160,000 per ship per fiscal year (rising to $9,833,000 per ship by fiscal years 2039–2040) and program funding authorized at $122,400,000 per year for FY2025–2026 rising to $196,660,000 per year for FY2039–2040; all payments are subject to actual appropriations.
Who Can Join TSP: Eligibility Rules
To join TSP your tanker must be a U.S.-flag product tanker that is commercially viable and militarily useful and must operate in U.S. foreign commerce. The rule text also references vessel age limits in two places: it states vessels must be "not more than 10 years in age" in one section and defines a TSP Fleet Vessel as "no more than 20 years of age" in another section.
TSP Fleet Size and Funding Schedule
Congress authorizes up to 20 TSP vessels and MARAD reflects that cap. The statute phases fleet size and funding: funding authorization for 15 vessels is provided for FY2025–2026 and funding for 20 vessels for FY2027–2028; payments per vessel are authorized at $8,160,000 for FY2025–2026 and up to $9,833,000 for FY2039–2040, subject to appropriations.
Government Charter 180‑Day Disqualification
A vessel under a long‑term charter to the U.S. Government lasting more than 180 continuous calendar days becomes ineligible for TSP participation. The rule clarifies ineligibility occurs on the date and time the vessel is actually delivered to and accepted by the Government for operation under the charter.
VTA Activations Not Disqualifying
If your TSP vessel is activated under a Voluntary Tanker Agreement (VTA) to meet contingency needs, that activation is not treated as a long‑term Government charter for purposes of disqualification. MARAD also will not terminate an Operating Agreement if a vessel suffers a marine casualty while activated under VTA, so long as the Agreement Holder makes reasonable and timely efforts to repair or replace the vessel (though MARAD is not required to continue payments after the casualty).
Maintenance Reporting and Payment Limits
Agreement Holders must notify MARAD in advance of any maintenance, survey, inspection, or repair that would render a vessel unable to move under its own power or unable to meet VTA obligations. MARAD will not make payments for any day a vessel is in maintenance/survey/repair that exceeds 30 days per fiscal year unless the Agreement Holder obtains MARAD's prior authorization.
Operating Agreements Extended Through FY2040
MARAD extended the authorization period of TSP Operating Agreements to the end of fiscal year 2040 and may enter into new Operating Agreements after the start of the initial ten agreements. Obligations under Operating Agreements are subject to actual annual appropriations.
Priority for U.S.-Built Tankers
MARAD added a fourth selection priority that gives preference to tankers built in the United States. The rule notes there are currently no U.S.-built tanker vessels but adds the priority to encourage U.S. shipbuilding without excluding foreign‑built vessels.
Application Paperwork Cost Estimate
MARAD estimates the annual paperwork burden for TSP application and administration at $2,438.50. Applicants must provide extensive corporate, financial, vessel, and operational documentation to apply.
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