The Small Shipyard Grant Coalition announced that the federal Small Shipyard Grant Program will receive $35 million in fiscal year 2026, marking a significant funding increase compared with the previous two years. Administered by the U.S. Maritime Administration, the program continues a multiyear trend of bipartisan congressional support aimed at strengthening small and mid-sized U.S. shipyards through capital improvements and workforce development initiatives.

Under statutory requirements, MarAd must issue a Notice of Funding Opportunity (NOFO) within 15 days of enactment, with the notice expected by February 18 and applications due by April 4. Awards are typically announced in early June. The grant program has historically supported equipment purchases, facility upgrades, and training infrastructure that improve shipyard efficiency and competitiveness. Industry groups expect eligibility requirements to remain largely consistent with prior years, prompting shipyards to quickly prepare project scopes and cost estimates. Advocates say the increased funding reflects sustained bipartisan backing and growing recognition of the role small shipyards play in U.S. maritime industrial capacity.