Status of Proposed 2026 Legislative Changes to the Small Shipyard Grant Program
With both houses of Congress now recessed until after the November elections, here is where things stand on potential changes to the Small Shipyard Grant Program (SSGP).
Trump Administration position
Building on the February 2026 America’s Maritime Action Plan, the Trump Administration transmitted a legislative proposal to House Committees that would, among other things, fold the SSGP into a larger grant program available to shipyards of all sizes.
Administration officials have since assured the Coalition that the proposal to combine the SSGP with a broader grant program was not intended to minimize support for small shipyards. Rather, they have indicated continued strong support for the SSGP and a desire to further strengthen shipyard grant funding up to $105 million per year.
House of Representatives position
In July, the House adopted the Administration’s proposal as part of its version of the National Defense Authorization Act (NDAA), in Section 3561 (page 2228). At the same time, the House bill contains several provisions that specifically support the Small Shipyard Grant Program and small shipyards, including:
$105 million authorization for the SSGP (Section 3501, page 2142)
Explicit SSGP eligibility for digital shipyard tools (Section 3525, page 2177)
Large portions of the Ships for America Act (SHIPS Act), including a number of provisions intended to strengthen the U.S maritime industrial base (starting with Section 3601, page 2311).
The House bill also creates a new Maritime Security Fund (Section 3621, page 2347). This provision does not specifically dedicate funding for SSGP or any individual program. However, the concept is significant because a dedicated maritime funding mechanism could potentially provide a more predictable, multi-year source of funding for programs such as the SSGP.
Additional House NDAA provisions of interest to small shipyards are summarized below.
Senate position
In June, the Senate Armed Services Committee approved its version of the NDAA without provisions addressing SSGP or other MARAD programs.
The bill did not advance to Senate floor consideration before the recess, and informal negotiations between key House and Senate staff are ongoing. The next major step is likely to be negotiations over a final NDAA package that could be considered in both houses after the November elections.
What is at stake and what the Coalition is doing
More than in most recent years, the future structure of the Small Shipyard Grant Program is actively being considered in Congress, with potentially significant changes on the table. At the same time, the prospects for substantially increased funding appear stronger than at any point since 2009.
In June, after discussions with a broad range of Small Shipyard Grant Program stakeholders, we developed a views statement outlining concerns with combining the SSGP with a broader shipyard grant program. Among our principal concerns is preserving a program specifically designed around the needs, project sizes, financial capabilities and investment timelines of small shipyards.
We have shared the statement with key policymakers for consideration as negotiations continue and are in the process of updating the document. We encourage you to contact us with any questions, concerns, or perspectives that may help inform our continued advocacy.
Other House NDAA provisions of note
The House NDAA contains several additional provisions potentially important to small shipyards and the broader maritime industrial base:
New MARAD shipyard grant program for shipyards building or repairing military vessels and commercial vessels engaged in international trade (Section 3643, page 2361, originally in the SHIPS Act)
Explicit eligibility of shipyards for the Defense Industrial Base Fund (Section 1831, page 1871)
MARAD Title XI loan guarantee program reforms, including adding commercial fishing vessels and measures intended to streamline the application process (Section 3522, page 2161)
Authorization of regional maritime incubators, including shipyard-focused ones (Section 3668, page 2420)
Transfer of the National Shipbuilding Research Program to MARAD (Section 3669, page 2436)
Elevation of the Maritime Transportation System National Advisory Committee (MTSNAC) from MARAD to White House level (Section 3612, page 2340)
The bill also includes several relevant strategy, planning and reporting provisions:
Expanded Navy strategy findings concerning maritime industrial base needs (Section 1016, page 1093)
A requirement for a Navy strategy to increase the use of distributed shipbuilding (Section 1026, page 1117)
A clean five-year extension of the Defense Production Act (DPA, Section 1735), along with a plan for using DPA authorities in certain shipyard sectors (Section 3666, page 2417)
A report on improving federal incentive and regulatory programs for shipyards, including development of a government-wide shipbuilding plan (Section 3531, page 2187)
The Coalition will continue to follow negotiations closely and provide updates as final decisions are made this year on any changes to the SSGP.
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