37
APRIL 2026
bers, the Small Shipyard Grant Pro-
gram has real, practical implications.
The 
program, 
administered 
by 
MARAD, provides funding to quali-
fied small shipyards to support capital 
improvements, workforce training, 
and facility upgrades. Those invest-
ments, in turn, help shipyards operate 
more efficiently, expand capacity, and 
adopt modern technologies.
For vessel operators, that translates 
into tangible benefits: more capable 
shipyards, shorter repair timelines, 
improved reliability, and better long-
term value in vessel construction and 
maintenance.
In short, when small shipyards are 
stronger, the entire passenger vessel 
industry benefits.
PREPARING FOR FUTURE 
GRANT OPPORTUNITIES
The Small Shipyard Grant Program 
moves quickly once funding is an-
nounced, so the most successful appli-
cants tend to plan ahead rather than 
wait for the opening of a grant cycle.
The U.S. Maritime Administration 
typically releases grant opportunities 
with a relatively short application 
window. That means shipyards that 
already have a clear idea of what they 
want to do and how they plan to do 
it, are in the best position to compete.
For PVA vessel members, this creates 
an opportunity to stay engaged with 
your shipyard partners even outside of 
an active funding cycle. Conversations 
about future vessel construction, repair 
needs, or facility upgrades can help 
identify projects that may be a good fit 
for grant funding down the road.
Generally, the strongest applications 
are built around practical, well-de-
fined projects, whether that’s upgrad-
ing equipment, expanding capacity, or 
investing in workforce training. These 
projects also tend to reflect real opera-
tional needs, not ideas developed solely 
for the purpose of applying for a grant.
The bottom line is simple: even if a 
grant opportunity isn’t immediately 
on the horizon, it’s worth thinking 
ahead. Shipyards and operators that 
take the time to plan and coordinate 
are better positioned to take advantage 
of funding when it becomes available.
LOOKING AHEAD
The FY26 funding increase is a major 
win for the maritime industry, but it is 
also part of a broader, ongoing effort.
Even at $35 million, demand for Small 
Shipyard Grant funding will likely 
continue to exceed supply. The new 
$105 million authorization—and the 
administration’s matching FY27 bud-
get request—point to a larger vision 
for the program, but continued ad-
vocacy will be important to turn that 
vision into sustained funding.
For the passenger vessel industry, the 
takeaway is clear: a strong network of 
small shipyards is essential to keeping 
vessels operating safely, efficiently, 
and competitively. The Small Ship-
yard Grant Program remains one of 
the most effective federal tools for 
supporting that network—and 2026 
may mark the beginning of a new 
chapter in its growth.
Conversations 
about future vessel 
construction, repair 
needs, or facility 
upgrades can help 
identify projects  
that may be a good 
fit for grant funding 
down the road.
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