The U.S. Maritime Administration said the funding available under its 2026 Small Shipyard Grant Program will increase to $35 million, up from the $8.75 million awarded in June 2025.
The agency said the move follows last week’s opening of the application period for the 2026 Port Infrastructure Development Program and aligns with the Trump administration’s effort to increase support for the U.S. maritime industry.
Transportation Secretary Sean Duffy said the new grant level represents a 200% increase from the June 2025 award total. MARAD had also provided about $20 million a year through the program in 2022 and 2023.
The grants are intended for shipyard investment projects, including facility upgrades for vessel construction and repair, new equipment purchases, and maritime training programs. Eligible equipment can include cranes, plasma cutters, and welding systems.
MARAD Administrator Stephen Carmel said the $35 million allocation would support facility modernization, improve operating competitiveness, and help workers build skills for the domestic maritime sector.
Under the program rules, eligible shipyards must operate from a single geographic site and employ no more than 1,200 production workers. They must also build, repair, or reconfigure vessels of at least 40 feet for commercial or government use, or vessels of at least 100 feet for non-commercial use.
Since 2008, the Small Shipyard Grant Program has provided 382 grants worth $320.5 million. In 2025, 17 recipients in 12 states received awards, with the largest individual grants exceeding $800,000 and mainly going toward new equipment purchases.
MARAD also said last week that it was accepting applications for the Port Infrastructure Development Program, which is aimed at port modernization and stronger supply chains. Duffy said more than $488 million would be available this year, with the program placing renewed emphasis on technology and infrastructure.
In addition, MARAD said it was awarding about $13.3 million to 11 marine highway projects across seven states. The U.S. Marine Highway system includes 35 designated routes that support supply chains, critical infrastructure, transportation, and maritime workforce development. This year’s grants include projects ranging from waste transport in Oregon to barge dock improvements in Pennsylvania.
