New USMMA Athletics Bill Creates Nonprofit, Authorizes Trademark Licensing to Fund Recruiting

The “USMMA Athletics Act of 2025” is essentially a restructuring plan for how the United States Merchant Marine Academy (USMMA) funds and manages its sports programs. Instead of relying solely on existing mechanisms, this bill authorizes the Secretary of Transportation to establish a dedicated, U.S.-owned nonprofit corporation, specifically a 501(c)(3), under New York State law to support USMMA athletics. Think of it as setting up a specialized booster club with official federal backing and a direct line to the Academy’s operations.

The New Booster Club: Structure and Oversight

This new corporation is designed to be the central hub for athletic funding. While the U.S. government will own all the stock, the corporation will have a Board of Directors serving without pay, though they can be reimbursed for travel. Critically, the Secretary can allow Department of Transportation (DOT) employees to sit on this board for oversight, but they can’t take up more than one-third of the total spots. This structure aims to keep the entity flexible like a nonprofit while ensuring the DOT maintains control and integrity. For everyday people, this means the Academy is getting a dedicated, tax-exempt fundraising arm, potentially leading to better facilities and support for student-athletes.

Getting Services and Property: The Sole-Source Shortcut

One provision that stands out is the authority for the Secretary to enter into contracts and cooperative agreements with this new corporation, including the ability to use sole-source contracts (Section 2). Normally, government agencies have to solicit competitive bids for services, but sole-source allows them to skip that process under certain conditions. This means the Academy can quickly acquire property, services, or travel from the corporation without the usual red tape. While this streamlines operations—allowing the Academy to, say, quickly hire a specific specialized coach or acquire specialized equipment—it also reduces transparency and competition, which is always something to watch.

The Secretary can also lease Academy real property to the corporation for up to five years, provided the property isn't immediately needed by the Academy. All money generated from these leases, along with ticket fees, game guarantees, and outside contributions, can be retained by the Secretary and spent on athletics without having to go back through the annual appropriations process. This flexibility is huge; it means revenue generated this year can be spent next year on a new project without being lost.

Turning Trademarks into Tuition (or Recruiting Funds)

One of the most interesting parts of this bill is the creation of a new revenue stream through licensing (Section 2). The Secretary is authorized to license USMMA trademarks and service marks—think logos, slogans, and branding—to the corporation for marketing and sponsorship deals. Any fees collected from these licensing agreements must first cover the cost of running the licensing program itself. Here’s the key: any fees left over after covering costs must be used for Academy recruiting activities.

This is a smart way to generate non-taxpayer revenue. If the USMMA logo becomes popular on hats, shirts, and other gear, that money doesn't just disappear into the general fund; it goes directly toward recruiting the next class of midshipmen. For the average person, this is a clear example of a federal entity finding a creative, market-based way to fund essential operations like recruitment, which is usually a budget line item.