US shipyards need $162.7 million in funding for fiscal year 2026-2027
Stocznia Chesapeake Ship Building, jeden z beneficjentów grantów federalnych. Fot. Chesapeake Ship Building
By Grant competitions for private shipyards operating in the United States concluded in June of this year. New grants will be awarded this summer. The market for American shipyards is by no means small, although the United States has long since lost its foothold in the production of ocean-going commercial and passenger vessels.
In individual US states, there are regions with considerable activity among manufacturers of smaller specialized vessels, ferries, and riverboats. There are many small shipyards located along the coasts, rivers, and inland waterways in the US.
The shipbuilding industry in North America is not dead and employs tens of thousands of workers. Alongside manufacturing, repair yards are also actively operating. Most repairs and class overhauls of commercial and fishing vessels take place there. Small vessel construction is ongoing.
Small shipyards in the United States are considered a strategic asset by the Trump administration. The US government emphasizes that shipyards are “critical to national security and economic development.” The US Maritime Administration reports that shipyards directly employ over 100,000 Americans.
Key Factors in the Recovery of the US Shipbuilding Industry According to Deloitte Experts
Large Shipyards in the Red
Deloitte analysts have described the shipbuilding industry’s problems globally. “It’s hard to ignore this picture: in 2024, the US shipbuilding industry accounted for just 0.1% of global shipbuilding production. In the same year, China State Shipbuilding Corporation – the largest shipyard group in the country – shipped more commercial tonnage than all US shipyards combined since the end of World War II,” Adam Routh, Pete Heron, RADM John W. Mauger, W. Robert de Jongh, Nick Pant, and Akash Keyal summarize the state of the US shipbuilding industry.
The United States ranks 22nd among the world’s flag registries, and US ships transport only 0.2% of global maritime container traffic. It is emphasized that “6% of this traffic is handled by US ports.” Deloitte analysts emphasize that [in 2024 – MG] “China accounts for 53%, South Korea for 29%, and Japan for 13% of the global shipbuilding market, with the rest of the world accounting for the remaining 4%.
Small shipyards as a local driver
Particular attention is paid to the fact that shipyards in their local communities “are the primary driver of local employment growth and offer unique opportunities, from custom ship design to specialized repair services.”
It is repeatedly emphasized that President Trump’s administration is providing the impetus to restore America’s dominance in the maritime market. The naval expansion program is intended to ensure that shipyards contribute to “strengthening defense, developing production, and increasing innovation and employment in the maritime sector.”
The US government is therefore trying to save what is still functioning well. In 2026, it allocated a record subsidy to small shipyards. U.S. Secretary of Transportation Sean P. Duffy announced last summer that the Maritime Administration (MARAD) had awarded $8.75 million in financial support to revitalize American shipyards and strengthen America’s maritime dominance. Shipyards could use these grants in the 2025-2026 fiscal year.
Source: Deloitte
Training and Technology Grants
The funding is part of the Small Shipyard Grants program. The grants are used to train workers using advanced technologies. The federal funding allows for vocational training for the workforce. They are used for new technologies that will improve the competitiveness of small American shipyards in shipbuilding and repair.
“President Trump’s plan to regain maritime dominance starts with rebuilding America’s shipyards,” said U.S. Secretary of Transportation Sean P. Duffy, announcing the grants for shipyards. He said, “This program will help America build big, beautiful ships again to face Chinese competition and maintain freedom of the seas.” The economic importance of the shipbuilding industry as a vector of innovation and an industry vital to national security has also been recognized. “Unleashing the full potential of America’s shipyards will strengthen our economic strength and national security,” stated Acting Maritime Administrator Sang Yi.
“The Small Shipyard Grant Program revitalizes the American maritime industry by investing in businesses that drive innovation, increase productivity, and stimulate job creation in communities across the country,” the MARAD press release emphasizes.
The U.S. Maritime Administration notes that “Since its inception in 2008, the Small Shipyard Grant Program has awarded 382 grants totaling $320.5 million to eligible small shipyards.”
Conrad Shiyard. Source; Conrad Shipyard
Plasma and Welding Grants
In the latest competition, grants were awarded to 17 recipients in 12 states last year. Among them, Conrad Orange Shipyard, Inc. of Orange, Texas, received over $418,200 for the purchase of a CNC plasma cutting system. Ice Floe, LLC, operating under the name Nichols Brothers Boat Builders, in Freeland, Washington, received over $357,300 for the purchase of a CNC milling table, a CNC laser table, a dust collector, an air dryer, and 15 multi-process welders with wire feeders. Lake Union Drydock Company in Seattle, Washington, used a grant of over $298,100 to purchase a 9-ton mobile crane, a set of four welders, sheet metal cutters, and LED drydock lighting.
In 2026, grant applications were inundated. The U.S. Maritime Administration received 172 applications for a total of $162.7 million. However, under the Small Shipyard Grant Program, only $35 million was budgeted for the upcoming financial year. This is still a remarkable increase compared to the $8.75 million awarded in each of the previous two years.
Demand for grants from small shipyards continues to significantly exceed the budgeted funds. – The fact that small shipyards applied for over USD 162 million in funding,
