While the official business of the federal government slowed to a crawl during the government shutdown, the U.S. Senate Committee on Commerce, Science, and Transportation and its Subcommittee on Coast Guard, Maritime, and Fisheries dedicated valuable hearing time to maritime issues that matter deeply to PVA members and commercial mariners across the industry.
MARAD Leadership and the Maritime Action Plan
The committee first convened to consider the president’s nomination of Stephen Carmel to lead the U.S. Department of Transportation Maritime Administration (MARAD). A graduate of the U.S. Merchant Marine Academy and a licensed master by age 26, Mr. Carmel received broad bipartisan praise from senators. Senator Mark Kelly (D-Ariz.), himself a Merchant Marine Academy graduate, remarked, “We need leaders at MARAD who can hit the ground running on day one. I believe Steve Carmel is the right leader for this moment.”
If confirmed, Mr. Carmel would lead an agency that will play a central role in implementing the administration’s Maritime Action Plan, a blueprint to rebuild domestic shipbuilding capacity, strengthen the U.S.-flag fleet, and expand maritime workforce development—goals strongly supported by PVA. In addition to its policy responsibilities, MARAD administers programs that directly benefit the passenger vessel industry, including the Small Shipyard Grant Program, which provides essential funding for infrastructure upgrades, equipment purchases, and workforce training at small and medium-sized U.S. shipyards. These grants strengthen America’s maritime industrial base and sustain skilled jobs in coastal and inland communities nationwide.
Reviving Commercial Shipbuilding
Later in the month, the Subcommittee on Coast Guard, Maritime, and Fisheries held a hearing titled “Sea Change: Reviving Commercial Shipbuilding.” The discussion focused on ways to modernize and expand both commercial and naval shipbuilding while reinforcing the broader maritime industrial base. A link to view the hearing can be found here.
PVA submitted written testimony to the committee emphasizing its support for America’s small shipyards, as well as its long-standing advocacy for the Small Shipyard Grant Program, the Jones Act, and the Passenger Vessel Services Act (PVSA)—each a cornerstone of the U.S. passenger vessel industry. A link to PVA’s statement can be found here.
At the center of the hearing was the SHIPS for America Act, sponsored by Senators Mark Kelly of Arizona and Todd Young of Indiana, which would establish a national maritime strategy to Title XI vessel financing, and the addition of 250 U.S.-flagged commercial vessels over the next decade. The bill also proposes streamlined mariner credentialing, expanded workforce training, and the creation of a maritime security advisor within the White House.
In a joint statement, Senators Kelly and Young said: “Today’s hearing made clear that there is growing, bipartisan momentum to rebuild American shipbuilding, which will be good for our economy and national security. We’ll keep working with maritime leaders to pass our bill and revitalize our shipbuilding industry.”
The hearing also touched on the Trump Administration’s forthcoming Maritime Action Plan (MAP), expected to reinforce domestic shipbuilding, impose new port fees on foreign-built vessels, and expand ship construction for the Navy, U.S. Coast Guard, and commercial operators.
The Role of Small and Mid-Sized Shipyards
PVA’s statement underscored that U.S.-flagged passenger vessels are designed and built almost entirely in small and mid-sized domestic shipyards, many of which are family-owned businesses that anchor local economies. Within PVA’s membership alone, there are 39 shipyards across 17 states, constructing ferries, excursion vessels, and overnight cruise ships for every region of the country.
“These yards represent the lifeblood of regional economies and the heart of America’s maritime workforce,” PVA wrote. “They are vital to the health of the broader U.S. maritime industrial base and the skilled trades that sustain it.”
The Small Shipyard Grant Program, administered by MARAD, remains essential to this ecosystem. These modest yet transformative grants allow small shipyards to modernize, improve efficiency, and train workers—enhancing their ability to compete in an increasingly globalized industry.
Ferry Construction: A Force Multiplier
PVA’s testimony also emphasized the importance of federal ferry programs as a direct and reliable driver of domestic shipbuilding. The Federal Transit Administration’s three ferry grant programs—the Passenger Ferry Grant Program, the Ferry Service for Rural Communities Program, and the Electric or Low-Emitting Ferry Pilot Program—enable communities to replace aging fleets with modern, efficient, U.S.-built vessels that comply with Buy America standards.
Additionally, the Federal Highway Administration’s Ferry Boat Program provides formula funding to states to support ferry construction and modernization, sustaining mid-sized shipyards and ensuring reliable ferry service for rural, coastal, and island communities nationwide. PVA reiterated its strong support for the Jones Act and the Passenger Vessel Services Act, which ensure that vessels engaged in domestic trade are built, owned, and crewed by Americans. These laws maintain demand for U.S.-built vessels and safeguard shipyard jobs across the country.
As PVA concluded in its testimony: “These programs aren’t just about building vessels—they’re about building the workforce, the innovation, and the industrial base that keep America’s maritime industry, and our national security, strong.”
Richard Patch is the Legislative Director of the Passenger Vessel Association.