The Small Shipyard Grant Coalition (SSGC) announced Feb. 4 that the federal Small Shipyard Grant Program will receive $35 million in fiscal year 2026 funding following the signing of the latest federal appropriations package. The total represents a notable increase compared with the previous two years.
In a press release, SSGC said the funding, administered by the U.S. Maritime Administration (Marad), continues a multiyear trend of congressional support aimed at strengthening small and mid-sized U.S. shipyards through capital improvements and workforce training.
Under statutory requirements, Marad must publish its Notice of Funding Opportunity (NOFO) within 15 days of enactment. The notice is expected by Feb. 18, with applications anticipated to be due by April 4. Awards are typically announced in early June.
The Small Shipyard Grant Program supports projects that improve shipyard efficiency, competitiveness, and workforce development. In past cycles, awards have funded equipment purchases, facility upgrades, and training infrastructure at yards engaged in commercial and government vessel construction and repair.
Industry groups expect eligibility criteria for both applicants and project types to remain largely consistent with prior years. That puts pressure on prospective applicants to quickly assemble project scopes and vendor quotes once the NOFO is released.
For many smaller yards, the program helps advance projects that might otherwise be delayed due to capital constraints. Equipment suppliers and training providers often assist yards in shaping proposals tied to production efficiency and skills development.
The funding increase follows bipartisan backing in Congress, including support from lawmakers representing maritime-focused states. Industry advocates have cited Sens. Bill Cassidy (R-La.) and Tammy Baldwin (D-Wis.), along with Reps. Mike Ezell (R-Miss.) and Salud Carbajal (D-Calif.), who serve as chairman and ranking member, respectively, of the House Coast Guard and Maritime Transportation Subcommittee.
Maritime advocates have also pointed to broader administration budget proposals seeking higher overall funding levels for small shipyard modernization, which helped build momentum for the final appropriation.
Shipyards considering applications are encouraged to refine project concepts and cost estimates ahead of the NOFO release to meet the relatively short application window. In a previous discussion with WorkBoat, SSGC founder Dave Matsuda spoke to best practices that may give applicants an edge in the review process.
