Congress Approves $35 Million For Small Shipyard Grants

With President Donald Trump signing H.B. 7148 into law on February 3, Congress has officially appropriated $35 million for the Maritime Administration’s Small Shipyard Grant Program, quadrupling the program from its fiscal year 2025 funding level.

“The clock has officially started, with 60 days until applications are due around April 4,” the Small Shipyard Grant Coalition said in a notice to members. “MarAd by law is required to publish its grant notice within 15 days, around February 18.”

If MarAd releases the Small Shipyard Grant Program notice of funding opportunity on February 18, with applications due on April 4, that would mean grant awards could be announced around June 3, according to statute.

According to the Small Shipyard Grant Coalition, the 2025 notice of funding opportunity serves as a solid guideline for what to expect for fiscal year 2026 grants. Last year, to be eligible, shipyards had to have no more than 1,200 production employees and engage in the construction, repair or reconfiguration of vessels 40 feet long or greater for commercial or government use or vessels 100 feet long or greater for non-commercial vessels. Eligible projects included capital improvement projects and maritime training projects. Funds from the Small Shipyard Grant Program may not be used to build physical facilities, and federal funds may not exceed 75 percent of the total cost of a project.

H.B. 7148 also appropriated $103.3 million for the Port Infrastructure Development Program as part of the National Defense Authorization Act. Of that total, Congress designated $38.6 million for coastal seaports, inland river ports or Great Lakes ports, with the minimum grant amount set at $1 million. The remainder, $64.7 million, was designated for Community Project Funding/Congressionally Directed Spending.