Congress Could Quadruple Small Ship Grants

Dave Matsuda, former Maritime Administrator and currently a transportation consultant and founder of the Small Shipyard Grant Coalition, has an urgent message for all operators and owners of small shipyards: apply now for Maritime Administration Small Shipyards grants— and go big.

While the Trump administration formally requested $105 million for the Small Shipyard Grant Program in the fiscal year 2026 budget proposal, his request does come with some strings, Matsuda noted. The president’s support includes a preference for capital/equipment upgrades as well as projects that provide “construction of ships with defense applications.”

On January 22, the House of Representatives passed its FY2026 Transportation, Housing and Urban Development Appropriations bill that included $35 million in funds for the Small Shipyard Grant Program. While that amount is $70 million less than the president’s request and similarly less than what House champion Rep. Salud Carbajal requested, it is still four times higher than last year’s sum and the highest level of funding in a single round since 2009.

In a newsletter to Small Shipyard Grant Coalition supporters, Matsuda wrote, “For those of you who have been sitting out of the grant process the past couple of years due to scarce funding availability, this could be a critical year to submit an application. Budget hawks will be watching closely to see whether there is actual demand for these funds, or whether this funding can be reduced next year instead of increasing it further. With a pot of $35 million, we can expect the agency to dole out average awards of $1 million and as high as $2 million or so. Just think of the great projects you can move forward with this kind of funding!”

$35 million represents a significant boost over each of the past two years, when the program was funded at $8.75 million. For each of the three years prior to that, it was funded at roughly $20 million. When it was founded in 2008, it was funded at $10 million a year. Under President Barack Obama, the program received a one-time appropriation of $100 million as part of his American Recovery and Investment Act in 2009.

If the bill is signed into law before January 30, as expected, applications will be due 60 days later, at the end of March. Grant requirements, including a 75 percent cap for federal funds per grant, are published on the Maritime Administration’s website.

“This is a great opportunity to educate your members of Congress about the importance of this program to your shipyard and to meet other professionals in the small shipyard community,” Matsuda said. He encouraged shipyard professionals to attend an upcoming fly-in.

Of the two measures passed by the House January 22, H.R. 7148 included funding for Labor, Health and Human Services and Education, Defense and Transportation and Housing. H.R. 7147, contains Homeland Security appropriations.

H.R. 7147 passed by a vote of 220 to 207, while H.R. 7148 passed by a wider margin—341 to 88.

As introduced, the measures include: $98 million for Waterways Commerce Cutters, $40 million for deferred shore-side maintenance, $30 million for deferred cutter and boat maintenance, $481.6 million for the Cable Security Program, the Maritime Security Program and the Tanker Security Program, $347 million for maritime academies, $917 million for the Maritime Administration (a $17 million boost over FY25) and $39 million for Port Infrastructure Development Program grants.