USMMA Athletics Act of 2026

The Secretary of Transportation (referred to in this section as the Secretary) may establish, in accordance with the laws of the State of New York, a corporation (in this section referred to as the corporation) to support the athletic programs of the United States Merchant Marine Academy.

All stock of the corporation shall be owned by the United States and held in the name of, and subject to be voted by, the Secretary.

The corporation shall operate exclusively for charitable, educational, and civic purposes to support the athletic programs of the United States Merchant Marine Academy.

The corporation shall be organized and operated—

(1) as a nonprofit corporation under section 501(c)(3) of the Internal Revenue Code of 1986;

(2) in accordance with this section; and

(3) pursuant to the laws of the State of New York, its articles of incorporation, and its bylaws.

The members of the board of directors of the corporation shall serve without compensation as members of the board, except for reasonable travel and other related expenses for attendance at meetings of the board.

The Secretary may authorize employees of the Department of Transportation to serve, in their official capacities, as members of the board of directors of the corporation—

(i) for the sole purpose of providing oversight and advice to, and in coordination with, the corporation; and

(ii) to carry out any activities of the board other than those activities that constitute participation in the day-to-day operations of the corporation.

Employees serving as a member of the board of directors pursuant to an authorization under subparagraph (A) may not hold more than one-third of the directorships.

An employee serving as a member of the board of directors shall be subject to the limitation on compensation under paragraph (1).

The Secretary may enter the corporation into contracts and cooperative agreements for the purpose of supporting the athletic programs of the United States Merchant Marine Academy.

Notwithstanding section 3105 of title 41, United States Code, a contract or cooperative agreement entered into under paragraph (1) may be a sole-source contract, subject to section 3304(a) of such title.

Notwithstanding chapter 63 of title 31, United States Code, a cooperative agreement under this section may be used to acquire property, services, or travel for the direct benefit or use of the United States Merchant Marine Academy.

For the purpose of supporting the athletic programs of the United States Merchant Marine Academy, in consultation with the Administrator of General Services, the Secretary may rent or lease to the corporation any real property located at the United States Merchant Marine Academy—

(1) under such terms and conditions as are deemed advisable;

(2) for a period not exceeding 5 years;

(3) so long as such real property is not required for immediate use by the United States Merchant Marine Academy; and

(4) so long as all proceeds from such rental or lease be retained and expended in accordance with subsection (j).

To the extent required by a contract or cooperative agreement under subsection (d), the Secretary may provide support services to the corporation while the corporation conducts support activities at the United States Merchant Marine Academy only if the Secretary determines that the provision of such services is essential for the support of the athletic programs of the United States Merchant Marine Academy.

The provision of support services under paragraph (1) may not result in any liability for the United States to the corporation.

In this subsection, the term support services includes utilities, office furnishings and equipment, communications services, records staging and archiving, audio and video support, and security systems, in conjunction with the leasing or licensing of property.

Except as provided in paragraph (2), the Secretary may, subject to the acceptance of the corporation, transfer to the corporation all title to and ownership of the assets and liabilities of the Department of Transportation nonappropriated fund instrumentality, the function of which includes providing support for the athletic programs of the United States Merchant Marine Academy, including bank accounts and financial reserves in the accounts of such fund instrumentality, equipment, supplies, and other personal property.

In making a transfer under paragraph (1), the Secretary may not transfer any interest in real property.

Notwithstanding section 1342 of title 31, United States Code, the Secretary may accept from the corporation funds, supplies, and services for the support of the athletic programs of the United States Merchant Marine Academy.

For purposes of this section, employees or personnel of the corporation are not employees of the United States.

To support the athletic programs of the United States Merchant Marine Academy, the Secretary may accept funds from the National Collegiate Athletic Association, funds from athletic conferences, game guarantees from other educational institutions, fees for ticketing and licensing, and any other consideration provided incidental to the execution of the athletic programs of the United States Merchant Marine Academy.

The Secretary shall ensure that contributions under this subsection and expenditure of funds pursuant to subsection (j) do not—

(A) reflect unfavorably on the ability of the Department of Transportation, or any employee of the Department of Transportation, to carry out any responsibility or duty of the Department in a fair and objective manner; or

(B) compromise the integrity or appearance of integrity of any program of the Department of Transportation, or any individual involved in such a program.

Subject to paragraph (2), a contract or cooperative agreement under subsection (d) may, consistent with section 109(h)(2) of title 49, United States Code, include an authorization for the corporation to enter into licensing, marketing, and sponsorship agreements (subject to the approval of the Secretary) relating to trademarks and service marks identifying the United States Merchant Marine Academy.

The corporation may not enter into any licensing, marketing, or sponsorship agreement pursuant to authority provided under paragraph (1) that—

(A) may reflect unfavorably on the ability of the Department of Transportation, or any employee of the Department of Transportation, to carry out any responsibility or duty of the Department in a fair and objective manner; or

(B) the Secretary determines involves use of the trademark or service mark would compromise the integrity or appearance of integrity of any program of the Department of Transportation or any individual involved in such a program.

Funds received by the Secretary under this section may be retained for use to support the athletic programs of the United States Merchant Marine Academy and shall remain available until expended.

Section 109(h) of title 49, United States Code, is amended by striking paragraph (2) and inserting the following:

The Secretary may license trademarks and service marks owned or controlled by the Secretary with respect to the United States Merchant Marine Academy and may retain and expend fees received from such licensing in accordance with this paragraph.

The Secretary shall designate the trademarks and service marks with respect to which the Secretary will exercise the authority to retain licensing fees under this paragraph.

The Secretary shall use fees retained under this paragraph for the following purposes:

(i) For payment of costs incurred by the Secretary of securing trademark registrations and of operating the licensing program under this paragraph.

(ii) For recruiting activities of the United States Merchant Marine Academy under the jurisdiction of the Secretary, to the extent that the total amount of the licensing fees available under this section for a fiscal year exceed the total amount needed for such fiscal year under paragraph (1).

Fees received in a fiscal year and retained under this paragraph shall be available until expended.

In this paragraph, the terms trademark and service mark have the meanings given such terms, respectively, in section 45 of the Act of July 5, 1946 (commonly referred to as the Trademark Act of 1946; 15 U.S.C. 1127).