Sean Duffy Confirmed as U.S. Secretary of Transportation
The U.S. Senate has confirmed the appointment of Transportation Secretary Sean Duffy, a former congressman from Wisconsin and a former Fox Business host. Multiple U.S. maritime stakeholders have lined up to welcome Duffy and support his selection.
"The Shipbuilders Council of America congratulates Sean Duffy on his confirmation as Secretary of Transportation. His leadership comes at an important time when solutions are needed to strengthen domestic shipbuilding and ship repair, expand maritime infrastructure, and secure the resilience of the U.S. shipyard industrial base," said Matthew Paxton, President of the Shipbuilders' Council of America. "We stand ready to work alongside Secretary Duffy and the Department of Transportation to promote policies that uphold the strength and competitiveness of our nation’s shipyard workforce and maritime fleet."
The Coalition for America’s Gateways and Trade Corridors (CAGTC) highlighted opportunities to work with Duffy on major freight projects, leveraging federal grant opportunities such as INFRA, Mega and BUILD.
"Secretary Duffy shared the new Administration’s goal to invest in large, durable projects that connect the nation and commerce. CAGTC shares this goal and is eager to work with Secretary Duffy to ensure that nationally and regionally significant freight projects are advanced swiftly and funded robustly," said CAGTC Executive Director Elaine Nessle.
The secretary has authority over the U.S. Maritime Administration, including the National Defense Reserve Fleet, the Maritime Security Program and the U.S. Merchant Marine Academy. He also oversees several key infrastructure grant programs that benefit ports and landside freight transport stakeholders.
Like President Trump, Duffy got his start in public life on reality television, appearing on MTV's The Real World and Road Rules in 1997, 1998 and 2002. Duffy completed law school at William Mitchell College of Law and was appointed district attorney for Ashland County, Wisconsin in 2002, a post he held until he began his first campaign for Congress in 2010. He served for nine years in the House of Representatives, focusing his efforts on financial regulation in the House Committee on Financial Services. He resigned in 2019 and was hired by CNN as a contributor, but soon transferred to Fox News Media.
Most of Duffy's experience has been outside of the transportation sector, but he has encountered maritime affairs at least once before. In 2016, he was active on the Congressional Task Force on Economic Growth in Puerto Rico, which briefly contemplated Jones Act reform.
As Secretary of Transportation, Duffy will face an immediate task: all federal grant disbursements from all agencies were suspended for a review by the Trump administration on Tuesday, except for funds that are payable directly to individuals. At least seven states filed suit to block the pause, and a federal court immediately ordered the White House to reverse course and resume payments until at least next Monday.
A 52-page guidance document from the Office of Management and Budget shows the scope and depth of the administration's ongoing review, in which DOT will play a part. 2,600 accounts are listed for examination, including most of DOT's maritime portfolio, like the accounts for:
- Federal Ship Finance Guarantees
- Maritime War Risk Insurance
- Funding for state maritime schools,
- The U.S. Merchant Marine Academy
- The Maritime Security Program
- Federal Assistance to Small Shipyards
- The Marine Highway Grant Program
- The Capital Construction Fund
- The Port Infrastructure Development Program
- and the newly-enacted Cable Security Fleet and Tanker Security Programs
In advice to corporate clients, law firm Holland & Knight noted that the administration has already changed course on federal funding freezes several times, and suggested that this is an active area to monitor.
"As a practical matter, clients may need to expect delays in disbursements and manage cash flow as best they can. In addition, clients need to pay special attention to meeting the terms of any award or loan agreements so that there is no reason government officials can use to cancel the awards," Holland & Knight advised. "There are other budget statutes governing federal funds, such as the Prompt Payment Act, which may require the government to eventually honor federal obligations and even pay interest on late required payments."