36
FOGHORN
A
fter several years of tight 
funding, 2026 is shaping up 
to be a significant year for 
the U.S. Maritime Administration’s 
(MARAD) Small Shipyard Grant 
Program. Congress delivered a major 
funding increase in the fiscal year 
2026 appropriations bill, underscor-
ing a growing recognition on Capitol 
Hill that small shipyards play a critical 
role in supporting the nation’s mar-
itime economy—and the passenger 
vessel operators who depend on them.
A MAJOR FUNDING 
INCREASE IN FY26
For fiscal year 2026, Congress appro-
priated $35 million for the Small Ship-
yard Grant Program—up from $8.75 
million in FY25. That fourfold in-
crease represents the program’s stron-
gest funding level in recent history and 
reflects renewed bipartisan support 
for domestic shipyard capacity.
For years, demand for these grants has 
far outpaced available funding. Many 
strong applications went unfunded 
simply because the program did not 
have sufficient resources. The FY26 
increase is an important step toward 
closing that gap and allowing more 
shipyards to move forward with need-
ed investments.
BUILDING TOWARD 
A LARGER PROGRAM
Beyond the immediate funding boost, 
there are signs that policymakers are 
thinking more expansively about the 
program’s future.
Congress has increased the program’s 
authorization level to $105 million 
annually, a substantial jump that 
signals long-term intent to grow the 
program. While authorization does 
not guarantee funding, it establishes 
a clear benchmark for what Congress 
believes the program should support.
The administration has echoed that 
approach. The president’s FY27 bud-
get request also calls for $105 million 
for the program, aligning with the 
new authorization level and reinforc-
ing momentum for continued growth.
Taken together, these developments 
suggest that the Small Shipyard Grant 
Program is gaining traction as a key 
tool for strengthening the U.S. mari-
time industrial base.
WHY THIS MATTERS 
FOR PVA MEMBERS
For Passenger Vessel Association mem-
RICHARD PATCH // PVA LEGISLATIVE DIRECTOR
LEGISLATIVE REPORT
A Breakthrough Year for 
the Small Shipyard Grant Program
LEGISLATIVE

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