Rebuilding the Maritime Industrial Base: What Congress Heard from America’s Small Shipyards
- Erika Young
- Oct 28
- 3 min read
Today, the Senate Commerce Committee’s Subcommittee on Coast Guard, Maritime, and Fisheries convened its hearing, Sea Change: Reviving Commercial Shipbuilding. During this hearing, the need to rebuild America’s maritime industrial base stood out as a major theme with each witness providing greater context from a variety of maritime sectors.
On behalf of the Small Shipyard Grant Coalition and its U.S. vessel construction and repair facilities and equipment manufacturers, Founder Dave Matsuda submitted testimony underscoring that message. In his comments, he called the Small Shipyard Grant Program, “a model of success for the rapid modernization of a key part of the U.S. maritime industrial base.”.
The testimony supports the bipartisan SHIPS for America Act which is currently being considered by Congress and would increase funding fivefold for the Small Shipyard Grant Program by investing $1 billion over ten years.
A Proven Model That Works
Created in 2008, the Small Shipyard Grant Program has become one of the most efficient federal tools for maritime industrial modernization. Administered by the Maritime Administration (MARAD), the program has awarded over 380 grants across 34 states and territories to shipyards that build and repair government, commercial, and workboat vessels.
The program’s success, Matsuda noted, lies in its discretionary, shipyard-driven design. Each yard identifies its own modernization priorities which helps to ensure that federal dollars flow to high-impact projects. Frequently, these projects range from U.S.-built cranes to welding systems to worker training facilities.
Its efficiency is also a result of MARAD's 60-day review process, minimal paperwork, and a proactive environmental review that helps avoid permitting delays. The result is that projects are completed quickly, funds are spent efficiently, and operational improvements are easily measurable.
Increased Funding Matters
Small and mid-sized facilities often struggle to access capital for the kind of modernization authorized by the Small Shipyard Grant Program. Their waterfront infrastructure carries industry-specific costs, while they also compete for labor in largely the same markets as larger employers.
The SHIPS for America Act’s proposal to increase annual funding for this program from $20 million to $100 million per year would be transformative. It would provide multi-year, dedicated funding and give small yards certainty to plan and invest in new capacity.
As Matsuda emphasized in the Coalition's testimony, “The proposed increase in funding will allow the program to fully leverage its proven efficiency and deliver transformative impact in many parts of the U.S. maritime industrial base that do not have access to other federal programs.”
Strengthening the Nation’s Maritime Base
When policymakers across parties are calling for greater domestic manufacturing and supply-chain resilience, the Small Shipyard Grant Program offers an efficient, results-driven way to achieve both. Nationwide, small shipyards build and maintain the vessels that power commerce, public safety, and national defense. Their ability to compete globally depends on modernization investments like those funded through the Small Shipyard Grant Program.
“The SHIPS for America Act ensures that small shipyards can continue to modernize efficiently, remain competitive globally, and support national security interests through job creation, supply chain resilience, and enhanced efficiency and capabilities,” Matsuda concluded.
Coalition Support Remains Steadfast
Through public testimony, congressional outreach, and engagement with maritime labor and industry groups, the Small Shipyard Grant Coalition’s ongoing advocacy demonstrates how critical this program has become to coastal and inland economies alike.
With demand surging and bipartisan support growing, the message from the maritime community to Congress is clear: investing in small shipyards is investing in America’s maritime industrial future.
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