Small Shipyard Grant Notices Delayed, GAO Recommends Changes

The Maritime Administration missed a July 13 deadline for announcing recipients of this year’s Small Shipyard grants. Congress made $8.75 million available for this year’s program.

While the Trump Administration has formally requested $105 million for the Small Shipyard Grant Program in the FY2026 budget proposal, the president’s support includes a preference for capital/equipment upgrades as well as projects that provide “construction of ships with defense applications.”

The Government Accountability Office (GAO), Congress’ investigatory agency, issued a report on June 30 about the Maritime Administration’s shipbuilding promotional programs, including some recommendations for the Small Shipyard Grant Program. While the GAO reinforced the importance and value of the Small Shipyard Grant Program, it also recommended that the Maritime Administrator develop “measurable goals” for the program to identify the results it seeks to achieve and then develop a process to collect information to measure progress. The program could then use that information to assess progress on a regular basis, according to Recommendation 5 from the GAO.

Recommendation 6 urges the Maritime Administrator to document the agency’s decision rationale for selecting or not selecting applications to receive Small Shipyard Grant Program awards.

Recommendation 7 suggests the Maritime Administration should notify all applicants to the Small Shipyard Grant program of their award status and how to request feedback on unsuccessful applications.

Naval Repair Grants

In related news, the Navy’s Naval Sea Systems Command (NAVSEA) has announced the availability of $5 million in grants for shipyards that perform repairs or alterations work on Navy surface combatants or amphibious ships. The deadline to apply is August 14.

These awards, expected to range from $300,000 to $500,000, are for capital projects or worker training, similar to the Small Shipyard Grant Program. The Navy expects to make 10 to 15 awards nationwide. There is no size limit for shipyards to be eligible, and matching funds in the amount of 25 percent are required. The Navy intends to award:

• Grants that may provide the largest return on investment
• Grants that may improve efficiency, operations, or capability
• Grants that may improve crew quality of life, decrease availability duration, and/or meet emergent fleet requirements

There are no NAVSEA grants to support construction of buildings or other physical facilities—except for piers, dry docks and structures in support of piers and dry docks—or to acquire land.