US DOT announces $35m investment for small shipyards

The US Department of Transportation announced on March 31 that the Maritime Administration (MARAD) will invest $35 million into the revitalization of small shipyards across the country. This funding represents a 300 per cent increase for the small shipyard grant program in 2026.

The federal investment is intended to upgrade ship repair and construction facilities while also facilitating the purchase of new equipment, such as cranes and welding systems.

According to the Department of Transportation, these funds will also support maritime training programs designed to expand the industry workforce.

Transportation Secretary Sean P. Duffy stated that the increase in shipyard investments is part of a strategy to enhance national security and ensure the affordable transport of goods.

Maritime Administration Administrator Stephen M. Carmel noted that the $35 million will allow the domestic maritime industry to modernize facilities and foster "competitive operations."

Eligible facilities must be located in a single geographic area and employ no more than 1,200 production workers to qualify for the funding. The Maritime Administration specifies that these yards must construct or repair vessels at least 40 feet (12.19 metres) long for commercial use, or 100 feet (30.48 metres) for non-commercial purposes.

Applicants are encouraged to submit eligible projects through the notice of funding opportunity by the deadline of May 11, 2026.