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5 MEMBER RELATIONS & GOVERNMENT AFFAIRS CABINET SECRETARIES Incoming Secretaries of Transportation, Labor and Commerce will all, in time, have prominent influence on the Maritime sector. Of particular note is the Secretary of Transportation, Elaine Chao, who has a rich hist- ory in the maritime industry. NATIONAL LABOR RELATIONS BOARD (NLRB) The NLRB has taken on three new Administration-nominated members and has started on a path to review and rescind some of the previous ad- ministration's rulings. FEDERAL MEDIATION AND CONCILIATION SERVICE (FMCS) As of this writing, a new FMCS Director has been nominated but not confirmed. FEDERAL MARITIME COMMISSION (FMC) The FMC has lost two Commissioners, leaving a three-member panel chaired by Michael Khouri. The Commission has signaled its desire to move in line with the Administration's wishes on regulation. Of note, it has been addressing an issue on free time and demurrage raised by the Coalition for Fair Port Practices. This issue has the potential to negatively impact USMX membership, so USMX has submitted on record a brief opposing the pro- posal set forth by the Coalition. Hearings and deliberations will continue through 2018. The funding for the FMC in FY 2018 is tied to two differing approaches in Congress. Both have the potential to affect the formation of vessel alliances, with one also calling for more terminal operator oversight. These proposals are in committee. MARITIME ADMINISTRATION (MARAD) The new Maritime Administrator, Rear Admiral Mark H. "Buz" Buzby, USN, Ret., whose background includes maritime sector experience, was sworn in on August 8, 2017. Prior to his appointment, Buzby served as president of the National Defense Transportation Association. GOVERNMENT AND TRADE ORGANIZATION OUTREACH USMX has continued its outreach program to members of the House of Representatives and the Senate, their representative staffs and associ- ated committees by utilizing a visitation policy that encompasses discus- sion topics of interest to our membership. USMX has also met with various trade organizations of interest to our industry. Legislative activity in our sector has not been vigorous. While various bills that would touch upon maritime activities either directly or indirectly have been introduced, none have gained much traction. The PLUS Act was re- introduced but movement on it has been slow. ADMINISTRATION INITIATIVES Two Administration initiatives, Infrastructure Development and the Fed- eral Budget for FY 2018, were introduced this Spring. One of the Administration's top priorities is infrastructure development. The rollout of its plan for development is aggressive and relies heavily on significant private sector funding. The plan as presented has potential to impact the maritime industry. The FY 2018 Budget passed by Congress is projecting a noteworthy in- crease in spending in matters of importance to the maritime sector. Of interest, the Harbor Maintenance Tax that is collected, is anticipated to be almost fully used for its intended purpose. The TIGER Grant program has been expanded and renamed the BUILD program. Government is also elevating the profile of cyber security and is seeking to determine its role on the subject. It also continues to debate the merits of the Jones Act. USMX maintains its support of adequate funding of maritime sector-related programs, including increased funding for Customs and Border Protection operations. THE COMING YEAR As we move through 2018, the Maritime industry will continue to retain a high profile in Government. National interest in the progress of our bar- gaining will be a focal point, as it relates not only to our country's well- being, but also to the effect it will have on the mid-term elections that are scheduled a mere five weeks from the conclusion of our current collective bargaining agreement.

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