H.R. 6961: USMMA Athletics Act of 2026

The USMMA Athletics Act of 2026 is a proposed bill aimed at establishing support for the athletic programs at the United States Merchant Marine Academy (USMMA). Here’s what the bill entails in simpler terms:

Establishment of a Corporation

The bill would allow the Secretary of Transportation to create a nonprofit corporation specifically designed to support the athletic programs at the USMMA.

• The corporation will solely operate for charitable, educational, and civic purposes related to athletics.
• The United States will own all shares of the corporation, with the Secretary being responsible for its voting rights.

Organization Structure

The corporation will be organized under New York state laws as a 501(c)(3) nonprofit. This means it will qualify for tax-exempt status and can receive donations that are tax-deductible for the donors.

Board of Directors

• Members of the board will not receive compensation for their service, except for reimbursement of travel and related expenses.
• Some employees from the Department of Transportation might serve on the board to provide oversight, but they cannot hold more than one-third of the board seats.

Contracts and Agreements

The Secretary can enter into various contracts or agreements to support USMMA athletics without needing the usual competitive procurement process. This could include agreements for facilities, services, or equipment needed for the sports programs.

Property Leasing

The Secretary will have the authority to lease real property at the USMMA to the corporation for up to 5 years, as long as the property is not immediately needed for academy use. The proceeds from these leases will be used to further support athletic programs.

Support Services

Under certain conditions, the Secretary can provide necessary support services to the corporation, ensuring no liabilities fall on the United States for these services. This support may include utilities, furnishing, communication services, and security.

Transfer of Funds

The Secretary can transfer assets and liabilities from Department of Transportation nonappropriated funds to the corporation, including financial reserves and equipment, to aid in running athletic programs. However, the transfer cannot include real property interests.

Acceptance of Contributions

The Secretary is allowed to accept various forms of support for the academy's athletic programs, including funds from sports organizations and other similar entities. However, there are safeguards to ensure that such contributions do not compromise the integrity of the Department of Transportation.

Licensing and Marketing

The corporation will have the authority to enter into licensing and sponsorship agreements related to the USMMA trademarks, subject to the Secretary’s approval, provided that these do not reflect poorly on the Department's integrity.

Use of Funds

Funds received to support the athletic programs will be retained and available for use until fully expended. This includes any fees raised from sponsorships or licensing that go directly toward supporting USMMA athletics.

Amendment of Existing Laws

The bill includes an amendment to existing laws regarding the Secretary's ability to license trademarks and use the fees collected. It clarifies how the fees can be retained and expended.

Relevant Companies

None found.