- The U.S. Maritime Administration has granted $8.75 million to 17 small shipyards across 12 states to strengthen maritime infrastructure.
- This year’s funding marks the lowest level since 2016, despite previous years seeing over $20 million annually.
- The initiative supports President Trump’s maritime policy goals but faces challenges, including leadership changes and lack of performance metrics.
The U.S. Maritime Administration (MARAD) has awarded $8.75 million to support 17 small shipyards across 12 states under its Small Shipyard Grant Program. The funding, announced by Transportation Secretary Sean P. Duffy, aims to revitalize domestic shipbuilding and reinforce America’s maritime strength. This is part of a broader strategy aligned with President Trump’s goal to reclaim U.S. leadership at sea, according to gCaptain.
Lowest Allocation Since 2016
This year’s allocation mirrors the 2024 amount, marking a significant drop from 2022 and 2023 when funding peaked at around $20–21 million. Despite reduced funding, the program remains a key mechanism for upgrading shipyard capabilities.
Key Recipients and Equipment Investments
The grants will be used for essential facility improvements and new equipment purchases, including cranes, cutting machines, and welding systems. Among the notable recipients receiving over $800,000 each are Breaux’s Bay Craft in Louisiana, Chesapeake Shipbuilding in Maryland, Snow & Company in Washington, and Fraser Shipyards in Wisconsin.
Strategic Importance of Small Shipyards
According to Acting Maritime Administrator Sang Yi, small shipyards play a vital role in bolstering economic growth and national security. They employ more than 100,000 people and provide specialized maritime services critical to maintaining fleet readiness and industrial resilience. Since 2008, the program has distributed 382 grants totaling over $320 million nationwide.
Link to National Policy and Challenges Ahead
This year’s funding follows President Trump’s executive order in April aimed at restoring U.S. maritime dominance. However, recent departures from the National Security Council’s shipbuilding office have raised concerns about continuity and direction in countering Chinese maritime expansion.
Concerns Over Program Accountability
A Government Accountability Office (GAO) report recently criticized MARAD for lacking clear performance metrics to assess the impact of its shipbuilding programs. While details for FY 2025 applications have not been released, FY 2024 saw 78 applications requesting nearly $50 million—far exceeding the amount awarded. This raises questions about demand-supply gaps and transparency in the selection process.
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Source: gCaptain
