MARAD Increases Funding for Grants for Small Shipyards

The Maritime Administration (MARAD) reported that it is increasing the funding pool available for the 2026 grants in the Small Shipyard Grant Program. It follows the launch of the 2026 Port Infrastructure Development Program application period last week and is part of the Trump administration's strategy to increase support for the U.S. maritime industry.

Transportation Secretary Sean Duffy highlights that the grant pool for small shipyards is being increased by 200 percent to $35 million versus June 2025, when just $8.75 million was awarded under the program. MARAD had previously awarded approximately $20 million per year in both 2022 and 2023 to the small shipyards.

The yards apply for the grants, with the investments going to projects such as upgrading ship repair and construction facilities, and purchasing new equipment, which can include cranes, plasma cutters, and welding systems. It can also be used to bolster maritime training programs.

“This $35 million investment will empower our domestic maritime industry to modernize facilities, foster competitive operations, and equip the American worker with the skills needed to restore our nation's maritime dominance,” said MARAD Administrator Stephen Carmel.

Under the terms of the program, MARAD highlights that eligible shipyards must be in a single geographic location and may not have more than 1,200 production employees. Eligible shipyards must construct, repair, or reconfigure vessels 40 feet in length or greater for commercial or government use, or construct, repair, or reconfigure vessels 100 feet in length or greater for non-commercial vessels.

Since 2008, MARAD's Small Shipyard Grant Program has awarded 382 grants for $320.5 million. The largest individual grants in 2025 were over $800,000 and were mostly used for the purchase of new equipment. A total of 17 recipients in 12 states were awarded funds in 2025.

Last week, MARAD also announced it was accepting applications under the Port Infrastructure Development Program, which aims to modernize ports and strengthen the supply chains. Duffy said this year’s program was refocusing on elements such as technology and infrastructure and would have more than $488 million to award.

MARAD also announced that it was awarding approximately $13.3 million in grants to 11 marine highway projects across seven states. The Marine Highway system designates 35 routes that support U.S. supply chains, critical infrastructure, transportation, and maritime workforce development. This year’s awards ranged from a project for the transportation of waste in Oregon to the improvement of barge docks in Pennsylvania.