The fiscal year 2027 budget proposal released by Donald Trump includes $105 million in funding for the U.S. Maritime Administration’s Small Shipyard Grant Program, matching the record funding level proposed for fiscal year 2026. According to the Small Shipyard Grant Coalition, the continued commitment at this level reflects sustained federal focus on strengthening the domestic shipbuilding sector, particularly among small and mid-sized shipyards that play a critical role in repair, maintenance, and new vessel construction.
The Small Shipyard Grant Program has long served as a key source of federal support for shipyard modernization efforts, providing funding for capital improvements such as equipment upgrades, efficiency enhancements, and workforce development initiatives. Last year, $35 million of grants were awarded under the program. Grant applications can be filed online on the federal government’s website. Maintaining the $105 million request signals that policymakers continue to view these investments as essential to preserving the competitiveness and operational capacity of smaller shipyards across the United States.
In addition to continued funding for existing programs, the proposal introduces a new initiative (the Commercial Shipbuilding Infrastructure Development Program) with a recommended funding level of $250 million. While details regarding eligibility and program structure have not yet been released, the initiative suggests a broader strategic effort to expand and modernize the nation’s shipbuilding infrastructure. Industry stakeholders are expected to closely monitor forthcoming guidance to assess potential opportunities under this new program.
The budget proposal now advances to Congress, where appropriators will determine final funding levels. As with prior years, the ultimate outcome will depend on bipartisan support in both chambers. Notably, Bill Cassidy and Tammy Baldwin are leading a bipartisan effort in the Senate to secure full funding for the Small Shipyard Grant Program at the requested $105 million level, reflecting continued legislative interest in supporting the maritime industrial base.
The coalition has emphasized the importance of industry engagement during the appropriations process, noting that similar efforts are underway in the House of Representatives. Outreach efforts are expected to intensify in the coming months as stakeholders advocate for sustained or increased funding, particularly in light of ongoing supply chain pressures and workforce challenges affecting the shipbuilding sector.
Taken together, the administration’s proposal underscores a continued policy emphasis on domestic shipbuilding capacity and infrastructure investment. For shipyard operators and maritime businesses, the coming appropriations cycle will be critical in determining the availability of federal funding opportunities and shaping the trajectory of industry support in the years ahead. For more information, contact Liskow attorneys Leon Rittenberg III, Caroline Lafourcade, and Kevin Naccari, and visit Liskow’s Tax Practice page.