MARAD recently submitted their FY10 budget to Congress

The budget request also includes $3 million in funding to continue nuclear
license management for the inactive Nuclear Ship SAVANNAH.

“Ship Disposal
MARAD maintains the National Defense Reserve Fleet (NDRF) as a reserve of ships for defense
and national emergencies. When ships are no longer considered useful for defense or aid
missions, the Maritime Administration serves as the U.S. Government's agent for their
responsible disposal. MARAD continues to pursue alternative disposal methods, such as
artificial reefing initiatives, with other Federal agencies to minimize impact on the human and
natural environment. The budget request also includes funding to continue nuclear license
management for the inactive Nuclear Ship SAVANNAH. The FY 2010 request includes $15.0
million, no increase over the FY 2009 enacted, to continue to remove obsolete ships from the
NDRF for disposal. The budget request also includes $3 million in funding to continue nuclear
license management for the inactive Nuclear Ship SAVANNAH”

Although it was the first US Flag Merchant nuclear ship, none others have been built here in the United States and to date nuclear energy has not been a viable alternative to carbon based fuels for ships. Three million is not much in the big scheme of US Government spending but personally I think that $3 Million in funding could be better spent else were, like improving Merchant Marine training at the State Academies, or perhaps not spent at all.

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