FY 2026 Notice of Funding Opportunity for Small Shipyard Grants

The Small Shipyard Grant Program, administered by the Maritime Administration (MARAD) of the U.S. Department of Transportation, is a discretionary federal grant initiative designed to support capital improvements and workforce training in small shipyard facilities across the United States. Established under 46 U.S.C. § 54101 and funded through the Consolidated Appropriations Act, 2026 (Pub. L. 119-75), the program for fiscal year 2026 has $35 million allocated, with $34.3 million available for award distribution after administrative deductions. The program is aimed at fostering efficiency, competitiveness, and quality in ship construction, repair, and reconfiguration, as well as enhancing workforce skills and productivity within the maritime industry. Eligible applicants are defined as small shipyard facilities operating in a single geographic location with no more than 1,200 production employees. These facilities must be engaged in the construction, repair, or reconfiguration of vessels that are at least 40 feet in length for commercial or government use, or at least 100 feet in length for non-commercial use. Only the operating company of the shipyard may apply. The grant may cover capital improvements involving new equipment owned by the grantee or maritime training programs delivered either internally or via external vendors, provided the training aligns with the goals of the program. Notably, the grants cannot be used for land acquisition or building construction. Applicants are required to cover at least 25% of the total project cost from non-federal sources, as MARAD funding is capped at 75%. In-kind contributions are not permitted for the match. Detailed financial documentation must be submitted to demonstrate the applicant's ability to meet the cost-share requirement. Grants are awarded on a reimbursable basis, and no costs incurred before execution of a grant agreement will be eligible for reimbursement unless explicitly approved by MARAD. Applications must be submitted via Grants.gov and must include a Standard Form SF-424 along with detailed project descriptions, cost itemization, NEPA considerations, domestic sourcing statements, and comprehensive financial documentation. The deadline for application submission is May 11, 2026, at 12:00 p.m. EDT, and MARAD plans to announce awards by July 10, 2026. Only one application per applicant is permitted, though multiple projects may be included in a single application. Each project must include quantitative analysis to demonstrate efficiency and productivity gains and be sufficiently documented to meet all program requirements. The evaluation process involves three phases: technical review, senior review, and final selection. Applications are assessed for merit based on their potential to improve operational efficiency, competitive positioning, and product quality. Additional selection preferences are given to proposals that exceed the minimum cost share, use domestic materials, or incorporate innovative technologies. MARAD will ensure that projects selected are ready for execution, have appropriate authority, and demonstrate sufficient funding availability for their required match. Risk assessments will also be conducted using data from SAM.gov and other federal systems. For further information, applicants can contact David M. Heller, Deputy Associate Administrator for Shipbuilding & Industry Expansion at the Maritime Administration, via phone at (202) 366-5737 or fax at (202) 366-5904. All application instructions and required forms can be found at www.grants.gov or MARAD’s Small Shipyard Grant Program website. Awards must be made no later than 120 days after the enactment of the funding legislation, in accordance with 46 U.S.C. § 54101. The program does not include recurring family-oriented benefits and is not subject to Executive Order 12372.

Quantitative analysis and innovation use are strongly encouraged and may result in preferential scoring.