← LEADERSHIP TERMINAL

US CONGRESS · SITTING

Eric Schmitt

Senator for Missouri · Republican · United States

IN THEIR OWN WORDS

(C) Participant tier members.--Data disseminated to participant tier members shall be appropriately anonymized and aggregated. (4) Mandatory cybersecurity and zero-trust integration.-- The Secretary shall ensure that the entire digital architecture of the Initiative conforms strictly to Federal zero-trust architecture mandates and incorpo…

CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

Congressional Record, Volume 172 Issue 113 (Monday, July 13, 2026) [Congressional Record Volume 172, Number 113 (Monday, July 13, 2026)] [Senate] [Page S3737] From the Congressional Record Online through the Government Publishing Office [ www.gpo.gov ] TRIBUTE TO JACOB CROWLEY Mr. SCHMITT. Mr.

CREC-2026-07-13-PT1-PGS3737-2 · READ IN THE CONGRESSIONAL RECORD

(d) Integration of Data.-- (1) Authority.--The Secretary may collect and integrate-- (A) voluntary confidential business information provided by private sector supply chain entities, including agricultural producers, energy producers, manufacturers, third-party logistics providers, commodity traders, ocean common carriers, and commercial…

CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

(a) Procedure for Transfer of Certain Defense Articles.-- (1) In general.--Not later than 180 days after the date of the enactment of this Act, with updates not less frequently than annually thereafter, the Secretary of State and the Secretary of Defense, in conjunction with coordinating entities such as the National Disclosure Policy Com…

CREC-2026-07-13-PT1-PGS3781-3 · READ IN THE CONGRESSIONAL RECORD

(B) Nature of limitations on liability.--The limitations on liability provided in this subsection-- (i) are additive to existing limitations on liability; (ii) apply only to the digital transmission of data to the Initiative; and (iii) do not affect any other commercial conduct, which shall be subject to existing statutory and regulatory…

CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

(B) Permitted disclosures.--The Secretary may disclose operational data to operational tier members as follows: (i) To a participating ocean common carrier, container- level or commodity-level data necessary to facilitate origin stowage plans and priority cargo blocks.

CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

The complete record

Every one of 181 lines we hold for Eric Schmitt, in date order, each linked to its source. Free to read, in full, without an account. Page 1 of 4.

  1. (2) DHS systems integration.--Any amounts transferred to the Secretary of Homeland Security under paragraph (1) shall be used-- (A) to support National Targeting Center (NTC) automated import and export cargo platforms; and (B) to enable continued, long-term enhancements for-- (i) the Automated Commercial Environment (ACE) system; (ii) the CTPAT; and (iii) the Vessel Entrance and Clearance System (VECS). (m) Limitation.--The authority to carry out this section shall be subject to the availability of appropriations provided in advance for such purpose. ______

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  2. (B) Limitation.--Except as provided in paragraph (2), amounts made available for the Initiative pursuant to this paragraph-- (i) shall be strictly limited to the actual, verifiable costs of administering the Initiative; and (ii) shall not be utilized to cross-subsidize unrelated agency operations. (C) Authorization of appropriations for subsequent years.-- There are authorized to be appropriated for fiscal year 2033 and each fiscal year thereafter an amount equal to $22,000,000, adjusted annually for inflation since fiscal year 2032.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  3. (3) Transfer of functions.--No data collected by the Bureau of Transportation Statistics under the Freight Logistics Optimization Works (FLOW) program prior to the date of enactment of this Act may be transferred to the Initiative without the explicit written consent of the submitting entity. (l) Financial Sustainability and Fiscal Allocations.-- (1) Base funding.-- (A) Authorization of appropriations.--There is authorized to be appropriated to the Secretary to carry out this section $22,000,000 for each of fiscal years 2027 through 2032, of which up to $7,000,000 may be transferred to the Secretary of Homeland Security each fiscal year for the purposes described in paragraph (2).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  4. (B) Nature of limitations on liability.--The limitations on liability provided in this subsection-- (i) are additive to existing limitations on liability; (ii) apply only to the digital transmission of data to the Initiative; and (iii) do not affect any other commercial conduct, which shall be subject to existing statutory and regulatory enforcement. (k) Relationship to Other Laws.-- (1) Limited statutory exemption.--Section 431 of the Tariff Act of 1930 (19 U.S.C. 1431) and section 11904 of title 49, United States Code, shall not prohibit the disclosure of specific data elements to participants strictly as described in this section. (2) FACA exemption.--Chapter 10 of title 5, United States Code, shall not apply to any working group or task force established by the Secretary to refine the predictive models of the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  5. (3) Competitive evaluation of the initiative.-- (A) In general.--Congress explicitly vests primary jurisdiction over the competitive evaluation of the Initiative with the Federal Maritime Commission. (B) Consultation.--The Attorney General shall formally consult with the Federal Maritime Commission prior to initiating any enforcement action relating to the Initiative, including the data-sharing protocols established under paragraph (2). (4) Savings provision for existing immunities.-- (A) In general.--Nothing in this subsection shall be construed to modify, diminish, restrict, or supersede the existing antitrust immunities, exemptions, or jurisdiction established under part A of subtitle IV of title 46, United States Code.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  6. (B) Consultation period.--Prior to finalizing data-sharing protocols for the Initiative, the Secretary shall consult with the Federal Maritime Commission, the Attorney General, and the Federal Trade Commission during a 60-day consultation period. (C) Post-consultation.--On expiration of the 60-day consultation period under subparagraph (B), the Secretary shall retain sole and final authority to approve and promulgate the data-sharing protocols for the Initiative. (D) Effect of compliance.--A participant acting in good faith conformity with the data-sharing protocols established under this paragraph shall possess a statutory rebuttable presumption of legality.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  7. (ii) Good faith utilization requirement.--The exemption under clause (i) shall be strictly contingent on the good faith utilization of the applicable data, by the participant receiving that data, to actively facilitate the physical prioritization and block stowage of eligible cargo. (iii) Pricing firewall.--The exemption under clause (i) shall not apply to-- (I) any agreement or data exchange regarding freight rates, surcharges, or contract terms; or (II) direct, peer-to-peer exchange of proprietary capacity data outside the secure digital architecture of the Initiative. (2) Protocol review and rebuttable presumption.-- (A) In general.--The Secretary shall establish data-sharing protocols for the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  8. (j) Preservation of Data Containment and Antitrust Protocols.-- (1) Limitation on damages.-- (A) In general.--In any civil or criminal action under the antitrust laws of the United States, conduct strictly limited to sharing operational data directly with the Initiative under subsection (g)-- (i) shall not be deemed illegal per se; but (ii) shall be judged on the basis of reasonableness. (B) Clayton act exemption.-- (i) In general.--A participant adhering to the data sharing protocols established under paragraph (2) shall not be liable for treble damages under section 4 of the Clayton Act (15 U.S.C. 15) with respect to the receipt or use of operational data from the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  9. (10) Exceptions for enforcement and bad actors.--The prohibitions under paragraph (2) shall not apply to-- (A) the investigation and enforcement of laws relating to trade remedies, customs revenue, transnational freight diversion, or the evasion of border duties under paragraph (3)(B); or (B) any entity certified by the Secretary of Commerce as an entity subject to the jurisdiction, direction, or control of a country of concern engaging in economic coercion.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  10. (9) Expanded fluidity monitoring.--Notwithstanding paragraph (2), the Secretary may share anonymized and aggregated system-wide velocity metrics with the Federal Maritime Commission and the Surface [[Page S3844]] Transportation Board, subject to the conditions that-- (A) the aggregation prevents reverse-engineering; and (B) no metric is shared until a minimum of 30 days has elapsed from the date of the transmittal to the Initiative of the information included in the metric.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  11. (7) Preservation of independent jurisdiction.--Nothing in this subsection supersedes the independent statutory authority of the Federal Maritime Commission, the Surface Transportation Board, or the Department of Justice to compel the production of information through standard lawful subpoenas conducted entirely outside the mechanisms and data architecture of the Initiative. (8) Data destruction.--The Secretary shall ensure that confidential business information received and maintained by the Initiative is destroyed or irreversibly anonymized not later than 2 years after the date on which the information is received by the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  12. (5) Immunity from discovery and cyber liability.-- (A) Immunity from discovery.--Data submitted to the Initiative-- (i) shall be immune from legal process; and (ii) shall not be subject to subpoena in any civil action. (B) Cyber liability.--No cause of action shall lie against any participant for a cybersecurity incident reliably determined to have originated solely from the authorized connection to the Initiative. (6) Limitations on targeting.--No Federal agency may use data from the Initiative to identify or target specific entities for independent audit or investigation in an attempt to circumvent the prohibitions under this subsection, except as explicitly authorized for the Department of Homeland Security and the Department of Commerce under paragraph (3)(B).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  13. (E) Limitation on evaluative use.-- (i) In general.--The statutory purpose of the Initiative is strictly limited to predictive cargo routing and network forecasting and, therefore, no aggregated data products, predictive models, or operational metrics disseminated or output by the Initiative under this section may be utilized, extrapolated, or published by any participant or Federal agency to evaluate, benchmark, or audit the operational execution, personnel output, or comparative efficiency of particular marine terminals. (ii) Savings provision.--Nothing in this subparagraph restricts, limits, or governs the use, analysis, or publication by a participant of its own native, proprietary operational data collected or maintained independently of the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  14. (D) Dispute resolution.--The transmission or receipt of predictive routing data and digital notifications under this section-- (i) shall be governed entirely by the existing dispute resolution procedures and operational parameters established within applicable collective bargaining agreements; and (ii) shall not create new, independent statutory grounds for regulatory intervention or compulsory arbitration.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  15. (B) Preservation of bargained frameworks.--Participation in the Initiative shall not be construed by any participant or Federal agency to alter, waive, or preempt any operational definitions, jurisdictional boundaries, or technology- adoption frameworks established under an existing collective bargaining agreement. (C) Employer obligations.--Nothing in this section relieves, diminishes, or supersedes the contractual obligations of an employer to confer, disclose, or negotiate with exclusive bargaining representatives regarding operational workflows or the integration of digital data into terminal processes, as governed by an applicable collective bargaining agreement.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  16. (B) Exception.--Nothing in this paragraph prohibits the Department of Homeland Security or the Department of Commerce from utilizing data to investigate and enforce laws relating to trade remedies, customs revenue, illegal transnational freight diversion, or the evasion of border duties, subject to the condition that such data consists exclusively of-- (i) data voluntarily submitted for the expedited service tier under subsection (f); or (ii) participant tier data unmasked strictly in accordance with the active, independent enforcement and investigation authorization conditions described in subsection (h)(1)(B)(ii). (4) Workforce protection.-- (A) In general.--Data derived from the Initiative shall not be introduced by any Federal agency to intervene in labor disputes.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  17. (2) Statistical confidentiality and enforcement prohibition.--No Federal agency may compel the production or use of data protected under this subsection to initiate civil or administrative enforcement against a submitting entity, including as evidence of violations of part A of subtitle IV of title 46, United States Code, or any regulation regarding detention and demurrage. (3) Secondary use prohibition.-- (A) In general.--Except as provided in subparagraph (B), under no circumstances shall data derived from the Initiative be shared with any Federal, Tribal, or State agency for the purpose of enforcing civil, environmental, occupational safety, tax, revenue, or labor regulations.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  18. (i) Preservation of Information Protections and Prohibited Uses.-- (1) Exemption from disclosure.--Information submitted to or generated by the Initiative shall be-- (A) exempt from disclosure under section 552(b)(3) of title 5, United States Code; and (B) considered to be confidential information for purposes of section 1905 of title 18, United States Code, except as explicitly authorized for limited disclosure to operational tier members and participant tier members under subsection (g).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  19. (5) Bi-directional exchange.-- (A) In general.--The Secretary of Homeland Security shall transmit to the Initiative the real-time disposition and release status of cargo, including Automated Export System clearances. (B) Limited sharing of status.--The Secretary of Transportation may share a binary indication of this status with operational tier members, subject to the condition that no Department of Homeland Security targeting methodologies, inspection codes, or law enforcement sensitive information is disclosed to any non-Federal participant.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  20. (3) Permitted uses.--Data made available by the Secretary under this subsection may be used strictly and exclusively-- (A) to support national mobilization; (B) to identify any country of concern or foreign entity subject to the jurisdiction, direction, or control of a country of concern, regardless of the destination of the applicable cargo; (C) to facilitate lawful trade; and (D) to detect anomalous transshipments or the routing of United States-bound cargo through contiguous foreign ports. (4) Preservation of authorities.--Nothing in this subsection supersedes the independent authorities of the Department of Homeland Security or the Department of Commerce.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  21. (2) Prohibition on unilateral expansion.--To preserve the confidentiality of data collected by the Initiative, the Secretary may not share data, analysis, or predictive models derived from the Initiative with any Federal or State agency not described in paragraph (1)(A), including the Department of Justice, the Environmental Protection Agency, and the Department of Labor, unless directed to do so by the President for the purposes of national defense during a declared national emergency.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  22. (iii) Proprietary cargo exception.--The commodity and aggregation constraints under clauses (i) and (ii) shall not apply to granular asset-level data or confidential business information strictly relevant to individual shipments where the Department of Agriculture or the Agricultural Marketing Service is the shipper of record, exporter of record, or procuring agency.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  23. (C) Department of agriculture.-- (i) Commodity limitation.--Data shared with the Department of Agriculture (including the Agricultural Marketing Service) shall be strictly limited to data, analysis, and predictive models directly regarding agricultural commodities, food products, forestry items, and related agricultural shipment flows. (ii) Aggregation requirement.--Except as provided in clause (iii), all data accessed by or disseminated to the Department of Agriculture or the Agricultural Marketing Service under this section shall-- (I) be strictly anonymized and aggregated; and (II) exclude granular asset-level data and unmasked confidential business information across all participation tiers.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  24. (ii) Private data firewall and balanced enforcement access.--Confidential business information unique to the Initiative under subsection (d)(1)(A), including forward- looking purchase orders, carrier booking projections, and landside distribution capacities, shall be strictly masked or withheld from the Department of Homeland Security and the Department of Commerce for participant tier members, subject to the condition that such data protection mask shall be lifted automatically and seamlessly for any cargo voluntarily designated for the expedited service tier under subsection (f), or upon the formal presentation of an active, independent trade remedy or customs revenue investigation authorization executed by an authorized enforcement agency.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  25. (B) Interagency data integration and mandatory enforcement protocols.-- (i) Compliance simplification.--The Secretary shall ensure that any data element required to be submitted to the Initiative across all participation tiers that is concurrently collected by or filed with the Department of Homeland Security or the Department of Commerce under existing customs, border security, or export clearance authorities is integrated seamlessly and transmitted electronically between the respective agencies to eliminate duplicate administrative burdens on participants.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  26. (h) Interagency Coordination for National Defense.-- (1) Strictly limited data sharing.-- (A) In general.--Subject to subparagraphs (B) and (C), the Secretary may share data, analysis, and predictive models derived from the Initiative strictly and exclusively with-- (i) the Department of Defense; (ii) the Department of Homeland Security; (iii) the Department of Agriculture (including the Agricultural Marketing Service); and (iv) the Department of Commerce.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  27. (6) Priority for infrastructure grants.--In awarding discretionary grants for freight infrastructure projects, including grants under the Port Infrastructure Development Program under section 54301 of title 46, United States Code, and the Nationally Significant Multimodal Freight and Highway Projects program under section 117 of title 23, United States Code, the Secretary [[Page S3843]] may, in addition to any other applicable provision of law providing for priority consideration under the applicable grant program, give priority consideration to applications submitted by or on behalf of operators that are active participants in good standing.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  28. (C) Subsequent integration.--Following the initial operational deployment for inbound containerized freight under subparagraph (B), the Secretary shall integrate outbound containerized exports and dry and liquid bulk commodities as technological readiness and commercial adoption permit. (D) Annual report.--The Secretary shall publish an annual report providing high-level statistical summaries of supply chain performance that shall not reveal confidential business information.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  29. (4) Prohibition on commercial competition.--The Secretary shall not develop, offer, or assess a fee for premium software modules that replicate commercially available fleet management, commercial routing, or reservation booking products. (5) Phased deployment.-- (A) In general.--The Secretary may implement data collection and dissemination pursuant to the Initiative in phases through technologically neutral interfaces. (B) Deadline for initial deployment.--Not later than 1 year after the date of enactment of this Act, the Secretary shall deploy the digital architecture for inbound containerized freight developed for the Initiative.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  30. (B) Disqualification and remediation.--If the Secretary determines that a technology service provider or terminal operating system vendor has violated a contractual prohibition described in subparagraph (A) or compromised data provenance, the Secretary-- (i) may disqualify that vendor from receiving data under this section; and (ii) except where an immediate threat to national security requires immediate cessation, shall provide any participant utilizing that vendor in good faith a reasonable operational transition period to remediate the exposure without penalty, revocation, or loss of status under this section.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  31. (C) Prohibition on resale.--No entity receiving data under this paragraph may sell, license, or incorporate the data into a commercial product offered to third parties. (3) Vendor exception.-- (A) In general.--Any participant receiving data under this subsection may transmit that data to a contracted technology service provider or terminal operating system approved by the Secretary, which shall include any legacy commercial system provisionally approved or deemed approved by the Secretary upon initial deployment, strictly to facilitate the internal logistics operations of the participant, subject to the condition that the vendor of the technology service provider or terminal operating system is contractually prohibited from utilizing the data for any other purpose.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  32. (x) To the Corps of Engineers, predictive vessel-specific data for barge and deep-draft vessel traffic across inland waterways and federally maintained coastal channels necessary to optimize lockage scheduling, water level management, dredging schedules, trust fund utilization, and infrastructure maintenance. (xi) To a participating licensed customs broker, read-only visibility of clearance status. (2) Participant tier members.-- (A) In general.--Subject to subparagraphs (B) and (C), the Secretary may share aggregated, anonymized benchmarking data with participant tier members. (B) Prohibition on real-time tracking.--Data shared under this paragraph shall not provide continuous, real-time location tracking of individual commercial assets.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  33. (v) To participating motor carriers, container-specific predictive availability strictly to optimize dispatch scheduling and facilitate advanced terminal and gate coordination. (vi) To participating providers of intermodal chassis, aggregated demand forecasts and empty equipment priority status to optimize equipment availability. (vii) To participating off-dock container yards, transload facilities, and warehouses, predictive availability strictly for cargo explicitly routed to that yard, facility, or warehouse. (viii) To a participating maritime operator on inland waterways, predictive queuing and lock status for transiting vessels and barges. (ix) To a participating pipeline operator or port-side bulk storage facility, predictive arrival times, volume, and priority status of liquid or dry bulk vessels.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  34. (B) Permitted disclosures.--The Secretary may disclose operational data to operational tier members as follows: (i) To a participating ocean common carrier, container- level or commodity-level data necessary to facilitate origin stowage plans and priority cargo blocks. (ii) To a participating marine terminal operator, predictive arrival times and container-level or tank-and- hold-level priority-mapped vessel stowage plans to support the expedited movement of priority containers, pipeline manifold scheduling, and the dynamic coordination of export receiving windows for outbound expedited cargo. (iii) To a participating port authority, anonymized volume and capacity forecasts relevant to the jurisdiction of the port authority. (iv) To participating railroad carriers, aggregated demand forecasts to plan railcar supply.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  35. (7) Revocation for abuse.--The Secretary may suspend or revoke participation in any tier of the Initiative for any entity determined to have knowingly submitted false or misleading data regarding the urgency, details, or strategic value of a shipment. (g) Tiered Information Sharing Architecture.-- (1) Operational tier members.-- (A) In general.--The Secretary may share operational data with directly interested operational tier members as necessary to facilitate the physical movement of cargo, subject to the condition that the disclosure is strictly limited to the operational data necessary for physical execution and shall not include commercial pricing, freight rates, financial contract terms, or any other confidential business information.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  36. (6) Essential cargo and abstraction during national emergencies.-- (A) In general.--During a declared national emergency, the President may develop a non-public Essential Commodity Target List for a country or affected region. (B) Exemption from disclosure.--An Essential Commodity Target List under subparagraph (A) shall be exempt from disclosure under section 552 of title 5, United States Code. (C) Requirement.--The Secretary shall not transmit the underlying Harmonized Tariff Schedule code or national security justification for any designation made under this paragraph to the applicable operational tier member executing the physical movement of the applicable cargo.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  37. (5) Mechanisms to prevent unreasonable displacement of general commerce.-- (A) In general.--In carrying out the Initiative, the Secretary may implement appropriate mechanisms to prevent the unreasonable displacement of general commerce. (B) Capacity allocation for small businesses.--In carrying out the Initiative, the Secretary shall establish a minimum percentage of all expedited capacity designations that shall be available for eligible small business concerns (within the meaning of section 3 of the Small Business Act (15 U.S.C. 632)). (C) Limitation.--Nothing in this paragraph provides any authority to impose physical terminal throughput quotas.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  38. (4) National interest waiver.-- (A) In general.--The Secretary, in consultation with the Secretary of Homeland Security, may temporarily waive the requirements of this section relating to covered logistics platform exposure, tamper-evident digital attestations, or both, for specific participants, trade lanes, or commodity classes if the Secretary determines that the waiver is in the national interest or necessary to prevent significant supply chain disruption. (B) Renewal.--A waiver granted under this paragraph shall be limited to a period not to exceed 180 days, but may be renewed by the Secretary for additional successive periods of up to 180 days upon a renewed determination of national interest or operational necessity.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  39. (C) Commercial intermediary safe harbor.--Nothing in this paragraph shall prevent or penalize the lawful routing of data by an authorized commercial intermediary, subject to the condition the commercial intermediary utilizes a secure architecture that preserves the original point-of-origin cryptographic attestation. (3) Transition period.--The Secretary shall establish a 2- year transition period for operational deployment, during which provisional eligibility for expedited service may be granted utilizing legacy electronic data transmission protocols and third-party audits, but after which the tamper- evident digital attestation requirements described in paragraph (2) shall be strictly enforced.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  40. (B) Requirement.--The standards promulgated under subparagraph (A) shall require-- (i) a tamper-evident digital attestation, originating from the physical point of execution, to verify that the data provenance has not been irreversibly scrubbed or masked by a proxy server affiliated with a covered logistics platform or an entity identified under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 113 note; Public Law 116-283); or (ii) an alternative verification mechanism that, in the determination of the Secretary, provides an equivalent or superior level of security and assurance of data provenance.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  41. (C) Requirements.--Cargo shall only be eligible for designation for expedited service under the Initiative if-- (i)(I) the importer or exporter of record is a validated participant in good standing of the CTPAT; (II) the cargo consists of supplies described in section 2631(a) of title 10, United States Code; or (III) the cargo consists of commodities included on an Essential Commodity Target List developed under paragraph (6); and (ii) the Secretary verifies that the cargo data is transferred via a trusted data chain, as described in paragraph (2). (2) Trusted data chain.-- (A) In general.--The Secretary shall promulgate technologically neutral data standards for verifying that cargo data is transferred via a trusted data chain.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  42. Customs and Border Protection, the Secretary of Commerce, and the Secretary of Agriculture, shall establish objective criteria to designate cargo for voluntary expedited service. (B) Risk profiles.--The Initiative shall provide vessel- and shipment-specific details to enrich existing information used by U.S. [[Page S3842]] Customs and Border Protection in the determination of risk profiles used to expedite freight upon entry.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  43. (5) Common carrier safe harbor.--The physical prioritization, block stowage, or expedited handling of cargo designated for expedited service consistent with the requirements of a secure supply chain under subsection (f) by a participating ocean common carrier or marine terminal operator, acting in good faith to fulfill the operational requirements of this section, shall not constitute an undue or unreasonable preference, advantage, prejudice, or disadvantage under section 41104 of title 46, United States Code, or any associated regulations. (f) Expedited Service Tier and Accountability.-- (1) Criteria for expedited service.-- (A) In general.--In carrying out the Initiative, the Secretary, in consultation with the Commissioner of U.S.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  44. (ii) Rule of construction for physical execution.--Nothing in clause (i) prohibits a commercial participant from assessing a just, reasonable, and non-discriminatory fee or published tariff for the actual physical handling, block stowage, expanded gate hours, or dedicated yard infrastructure required to physically execute the expedited service tier under subsection (f), subject to the advance notice and expedited review requirements under subparagraphs (A) and (B).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  45. (B) Oversight.--Any fee or mechanism described in subparagraph (A) shall remain subject to the continuous oversight of the Federal Maritime Commission, in accordance with its jurisdiction, including expedited review upon the filing of a participant tier member complaint. (C) Prohibitions and limitations on fees.-- (i) Prohibition on administrative fees.--A commercial participant shall not assess any secondary fee, surcharge, or cost-recovery mechanism against a participant tier member strictly for the administrative designation of cargo for the expedited service tier under subsection (f).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  46. (3) Operational requirement for expedited service.-- Notwithstanding paragraphs (1) and (2), the administrative designation and digital signaling of expedited cargo under subsection (f) shall be contingent on the good-faith physical execution of the designation or signaling by the participant electing to offer or utilize the expedited service tier, consistent with all applicable operational requirements under subsections (f) and (g), as determined by the Secretary. (4) Review of associated fees.-- (A) In general.--Nothing in this section exempts any fee or cost-recovery mechanism introduced by a commercial participant in relation to the Initiative from applicable statutory advance notice requirements.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  47. (ii) Requirement.--Individual container movements and shipments shall be evaluated for the expedited service tier under subsection (f) strictly on a transaction-by-transaction basis, subject to the condition that any specific move utilizing data that touches, originates from, or is transmitted via a covered logistics platform shall be ineligible for that expedited service tier or the receipt of granular operational tier data under subsection (g)(1), regardless of whether the moving party is an operational tier member or a participant tier member.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  48. (C) Inclusion for network visibility.-- (i) In general.--Nothing in this section shall be construed to prohibit an entity subject to the jurisdiction, direction, or control of a country of concern, or an entity utilizing a covered logistics platform, from participating as a participant tier member strictly for baseline data integration under subsection (d)(1)(A), subject to the condition that such entity and the moves of such entity shall remain strictly ineligible for each of the expedited service tier under subsection (f) and the receipt of granular operational tier data under subsection (g)(1).

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  49. (B) Authority.--Nothing in this section provides any authority to the Secretary to dictate commercial execution, market share allocation, or command-and-control logistics models utilized by state-owned enterprises or entities subject to the jurisdiction, direction, or control of a country of concern during the normal course of business.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD

  50. (2) Affirmation of voluntary participation.-- (A) In general.--Participation in the Initiative, including the data-sharing framework under subsection (g), shall be voluntary, subject to the condition that any individual or entity electing to participate shall-- (i) comply with the proportional, reciprocal data-sharing requirements established by the Secretary for the specific operational category or tier of participation of that individual or entity, including any additional data-sharing and cadence requirements necessary to execute the expedited service tier under subsection (f) for applicable cargo; and (ii) submit data in the format and cadence that the Secretary determines necessary for the Initiative to function properly.

    CREC-2026-07-13-PT1-PGS3840 · READ IN THE CONGRESSIONAL RECORD