Trump signs $35M for Small Shipyard Grants in 2026

The Small Shipyard Grant Coalition recently announced that the federal government has been fully funded for fiscal year 2026 following President Trump’s signing of the FY26 federal funding package, including $35 million for the U.S. Maritime Administration’s Small Shipyard Grant Program.

The funding triggers a statutory timeline for the grant program. By law, the Maritime Administration (MARAD) must publish its notice of funding opportunity within 15 days of enactment, expected around February 18. Applications will be due approximately 60 days later, placing the deadline around April 4.

The Small Shipyard Grant Program provides federal funding to eligible small shipyards for capital improvements and workforce training projects. Industry stakeholders say the application window will move quickly, particularly for shipyards that have not begun preparing project documentation or vendor quotes.

The funding level reflects a significant increase from prior years and follows a proposed $105 million allocation included in the administration’s budget request. The final appropriation also reflects continued bipartisan support in Congress.

Support for the program was led in the Senate by Bill Cassidy (R-La.) and Tammy Baldwin (D-Wis.), and in the House by Mike Ezell (R-Miss.) and Salud Carbajal (D-Calif.), who serve as chairman and ranking member of the Coast Guard and Maritime Transportation Subcommittee of the House Transportation and Infrastructure Committee.

MARAD is not expected to make significant changes to applicant or project eligibility requirements for the 2026 grant cycle. Industry advisors recommend that shipyards reference the 2025 Small Shipyard Grant Program notice as preliminary guidance while awaiting the updated notice.

Eligible projects typically include capital equipment purchases, facility upgrades, and workforce development initiatives. Shipyards are encouraged to secure vendor quotes early, as the compressed timeline may limit the ability to develop new project scopes after the notice is released.

The program also presents opportunities for domestic shipyard equipment manufacturers, as grant funding can accelerate customer investments that might otherwise be delayed for years. Workforce training providers may also support shipyard applicants by helping structure eligible training related capital and program costs.

The Small Shipyard Grant Program is administered by MARAD and is intended to strengthen domestic shipbuilding capacity, improve shipyard competitiveness, and support the U.S. maritime workforce.

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