Small Shipyard Grant Coalition Advocates for Increased Funding in Washington
By Dave Matsuda
This week, the Small Shipyard Grant Coalition (www.smallshipyards.com) held its annual Fly-In in Washington, D.C., to meet with federal officials and advocate for increased funding for the U.S. Maritime Administration’s Small Shipyard Grant Program. More than 40 members of the shipyard industry participated, effectively representing the sector’s interests.
We made the case that small shipyards are the backbone of the U.S. maritime industrial base. We also highlighted how small shipyards can contribute to significant growth in the nation’s overall shipbuilding capacity. Small shipyards can rapidly expand capacity to fabricate and outfit ship modules and components, often requiring significantly less investment than establishing a new shipyard.
Additionally, small shipyards play a vital role in workforce development, helping to mitigate the costly turnover of newly trained workers. These facilities are led by experienced executives who possess the knowledge and expertise needed to build and sustain efficient operations.
We emphasized the effectiveness of the Small Shipyard Grant Program, which supports shipyard modernization projects that are typically completed within a year. Unlike many federally funded projects that require extensive permitting, this program delivers results quickly.
We also highlighted the program’s strong safeguards against fraud, waste, and abuse. The Maritime Administration’s rigorous application review process and the program’s 25 percent matching fund requirement help ensure only viable, high-impact projects receive funding. This makes the program a model of efficiency and fiscal responsibility.
Our discussions with the Maritime Administration and senior White House advisors confirmed that enhancing national maritime capabilities is a top priority for the administration. One senior advisor described growing shipbuilding capacity as a “top five priority.”
Meetings with Senators and House members revealed a growing bipartisan commitment to expanding funding for the program. Many new lawmakers quickly grasped its importance, further strengthening support on Capitol Hill.
The Fly-In was a success, despite ongoing congressional gridlock. As Congress debates either a government shutdown or a full-year Continuing Resolution (CR), neither scenario would increase funding for the Small Shipyard Grant Program. At best, a full-year CR would maintain the program’s historically low FY2024 funding level of $8.75 million—one of the lowest amounts ever allocated for these grants. This stands in sharp contrast to the administration’s broader trend of cutting and freezing programs. Notably, no Maritime Administration employees connected to the program have been laid off, and only a limited number have departed voluntarily.
Once a decision is made on the FY2025 funding level, attention will shift to FY2026, starting with the president’s formal budget proposal. The upcoming budget will reveal the administration’s commitment to strengthening U.S. shipyards. Since 2008, President Joe Biden has been the only president to include funding for the Small Shipyard Grant Program in his budget proposal. We hope President Trump will do the same.
Dave Matsuda is a maritime industry veteran, a former Maritime Administrator and founder of the Small Shipyard Grant Coalition.
