- DOJ Cites Constitutional Limits on Vessel Charges.
- Cruise Industry Says Fee Unfairly Targets Ships.
- Hawaii Defends Green Fee as Climate Measure.
The U.S. Department of Justice is stepping into the cruise industry’s legal battle against Hawaii’s new Green Fee, a climate-focused tourism tax set to kick off on January 1. In a filing dated November 13, the DOJ contended that this measure breaches federal law and the U.S. Constitution, reports Marine Insight.
Concerns Over Federal Authority and Vessel Taxation
According to the DOJ, Hawaii’s tax clashes with the Constitution’s Tonnage Clause, which mandates that states get Congressional approval for any vessel charges they impose. They also referenced the Rivers and Harbours Appropriation Act of 1884, which restricts the fees states can levy on vessels. Federal attorneys argued that Hawaii intends to use the tax revenue for environmental initiatives rather than for services benefiting ships or their passengers.
Cruise Industry Claims Discrimination
The Cruise Lines International Association (CLIA) initiated the lawsuit on August 27, claiming that cruise operators are being unfairly singled out compared to hotels and airlines. The industry points out that hotels are facing only minor cost increases, while air travel is completely exempt, making this tax seem discriminatory.
Hawaii Defends Climate-Focused Legislation
Hawaii introduced the Green Fee in May 2025, estimating that it could generate up to $100 million annually for climate and environmental projects. State officials argue that climate change poses a significant threat to shorelines and natural habitats, and they are committed to defending the law while also pushing for the lawsuit’s dismissal.
Cruise Sector’s Limited Role in Hawaii Tourism
Cruising represents a small fraction of Hawaii’s tourism market due to cabotage laws. Currently, only one large U.S.-flagged cruise ship, the Pride of America, operates year-round from Honolulu. In 2023, cruise arrivals totalled around 300,000 visitors, a stark contrast to the 9.6 million total tourists that year. Bookings for the Pride of America in 2026 have dropped by 30% compared to 2025, a decline the industry attributes to the additional costs imposed by the Green Fee.
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Source: Marine Insight
