The U.S. Maritime Administration (Marad) will invest $35 million through its Small Shipyard Grant Program in fiscal year 2026 to support facility upgrades, equipment purchases, and workforce training at shipyards across the country, the U.S. Department of Transportation announced.
The funding will be used to help shipyards modernize ship repair and construction facilities, purchase equipment such as cranes, plasma cutters and welding systems, and support maritime workforce training programs.
Transportation Secretary Sean P. Duffy said the funding increase reflects a renewed focus on domestic shipbuilding capacity and maritime industry workforce development. Marad Administrator Stephen M. Carmel said the funding will help shipyards modernize facilities, improve competitiveness, and support workforce training.
The Small Shipyard Grant Program, established in 2008, has awarded 382 grants totaling $320.5 million to shipyards across the United States. The program supports capital improvements and training programs at smaller shipyards involved in ship construction, repair, and reconfiguration.
Eligible shipyards must be located in a single geographic location and employ fewer than 1,200 production workers. Facilities must construct, repair, or reconfigure commercial or government vessels at least 40' in length, or non-commercial vessels at least 100' in length. Grants are capped at 75% of a project’s estimated cost.
The Notice of Funding Opportunity outlines application criteria, with applications due May 11, 2026. Applications must be submitted electronically through Grants.gov.
Funding for the 2026 program was provided through the Consolidated Appropriations Act, 2026, which appropriated $35 million for the program. The funding represents a significant increase compared to recent years. For example, in fiscal year 2023, 27 shipyards in 20 states shared $20.4 million in grants, while funding dropped to $8.75 million in both 2024 and 2025.
