Trump Administration Announces $8.75 Million in Small Shipyard Grants, Continuing Funding Decline

The U.S. Maritime Administration (MARAD) has awarded $8.75 million in grants to support 17 small shipyards across 12 states, Transportation Secretary Sean P. Duffy announced today. The funding, part of the Small Shipyard Grant program, aims to revitalize U.S. shipyards and strengthen America’s maritime capabilities.

This year’s allocation matches the 2024 amount, marking the lowest funding levels since 2016. The program saw significantly higher investment in recent years, with funding peaking at approximately $20-21 million in both 2022 and 2023.

“President Trump’s plan to reclaim maritime dominance starts with rebuilding America’s shipyards,” said Transportation Secretary Sean P. Duffy. “This program will help America to build big, beautiful ships again to counter Chinese competition and maintain freedom on the seas.”

The grants will fund various shipyard improvements, including new equipment purchases such as cranes, cutting machines, and welding systems. Among the recipients, Breaux’s Bay Craft in Louisiana, Chesapeake Shipbuilding in Maryland, Snow & Company in Washington, and Fraser Shipyards in Wisconsin each received grants exceeding $800,000.

“Unleashing the full power of America’s shipyards will boost our economic strength and national security,” said Acting Maritime Administrator Sang Yi. “The Small Shipyard Grant program is revitalizing America’s maritime industry by investing in businesses that spur innovation, improve productivity, and fuel job creation in communities around the country.”

Since its inception in 2008, the Small Shipyard Grant program has awarded 382 grants totaling $320.5 million to qualified facilities nationwide. Small shipyards are considered critical infrastructure for national security and economic growth, employing more than 100,000 Americans and providing specialized maritime services.

This funding supports President Trump’s April executive order aimed at restoring America’s maritime dominance. However, the administration’s efforts have faced challenges with recent setbacks, including the departure of key officials from the National Security Council’s shipbuilding office that was established to counter China’s maritime influence.

The awards come after a recent GAO report found that despite having four financial assistance programs designed to bolster U.S. shipbuilding, including the Small Shipyard Grant Program, MARAD lacks proper performance metrics to determine their effectiveness in growing the nation’s maritime fleet.

MARAD did not publicly release official statistics on the number of applications submitted or the total amount requested for FY?2025, however in FY 2024 there was 78 applications requesting nearly $50 million in funding, according to the GAO.

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