MARAD FY2026 Small Shipyard Grant Program
U.S. Department of Transportation — Maritime Administration (MARAD)
Varies (25% match required)
Capital grants for small U.S. shipyards — equipment, facilities, and workforce training
Annual federal grant program that funds capital improvements and workforce training at small U.S. shipyards. Eligible shipyards employ 1,200 or fewer workers. Grants cover equipment purchases, facility upgrades, and training programs to strengthen domestic maritime industrial capacity. Federal share covers up to 75% of project costs; recipients provide at least a 25% match. FY2026 cycle under opportunity DTMASSG26 with a May 11, 2026 deadline.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $500,000 – $5,000,000
- Realistic amount
- Most recipients receive $500K–$3M. Single shipyard cap at 25% of annual appropriation limits very large awards. Expect $…
- Deadline
- May 11, 2026
- Status
- active
- States
- Nationwide
- Payment model
- reimbursement
Who qualifies
- Must be a shipyard located in the United States with no more than 1,200 total employees
- Facility must be located at a single geographic location (multiple facilities at the same site count as one)
- Shipyard must be engaged in shipbuilding, ship repair, or related maritime industrial activities
- No more than 25% of annual program appropriations may go to a single small shipyard employing more than 600 workers
- Applicant must have an active SAM.gov registration with a valid UEI at time of application
- Must provide at least 25% of total project cost as non-federal cost share
- Foreign-owned shipyards are generally ineligible; primary place of performance must be in the U.S.
Hard requirements
- Must be incorporated
- Restricted to industry: true
What it covers
Eligible expenses
- Capital improvements to shipyard facilities (docks, drydocks, marine railway systems, craneways)
- Procurement of shipbuilding and ship repair equipment (cranes, welding equipment, CNC machinery, propulsion test equipment)
- Computer hardware and software systems required for ship design, production planning, or facility management
- Workforce training programs — direct costs of training shipbuilders, welders, pipefitters, and other maritime tradespeople
- Safety improvements required to comply with OSHA or Coast Guard standards
- Project management costs directly attributable to the funded project
Ineligible expenses
- Construction of new buildings (prohibited by 46 U.S.C. § 54101(d)(3))
- Purchase or acquisition of land
- Non-domestic materials and equipment (Buy American Act applies with limited statutory exceptions)
- Operating costs, overhead, or general administrative expenses not directly tied to the funded project
- Costs incurred before the date of award
- Grant administration costs exceeding 2% of total program appropriation (agency-level cap)
How to apply
-
1
Confirm eligibility and obtain the NOFO
Download and read the full FY2026 NOFO (DTMASSG26) from Grants.gov. Confirm your facility qualifies as a small shipyard under 46 U.S.C. § 54101 (≤1,200 employees, single geographic location, U.S.-based, maritime industry). Identify eligible project types (capital improvements or workforce training).
~3 hrs
-
2
Register in SAM.gov and verify active status
Confirm your entity has an active SAM.gov registration and valid UEI number. If not registered, begin immediately — SAM.gov activation takes up to 10 business days. Your SAM.gov registration must be active at the time of application submission and at the time of award.
~2 hrs
-
3
Define the project scope and budget
Identify the specific capital improvement (equipment, facility upgrade) or training program you will fund. Develop a project narrative describing how the investment improves shipyard efficiency, competitiveness, or workforce capability. Prepare cost estimates and confirm your 25% match source.
~16 hrs
-
4
Prepare required application documents
Complete SF-424 (Application for Federal Assistance), SF-424A (Budget Information), project narrative, budget justification, and supporting documents. Include evidence of matching funds commitment. Ensure no funds will be used for land purchase, building construction, or non-domestic materials (prohibited by statute).
~20 hrs
-
5
Submit through Grants.gov before May 11, 2026
Upload complete application package to Grants.gov under opportunity DTMASSG26. Submit at least 48 hours before the deadline to allow time to resolve any submission errors. MARAD does not accept late submissions. Keep confirmation receipts.
~3 hrs
Industry & certifications
NAICS codes: 336611, 488390, 811310
MARAD releases this NOFO annually in late March — if FY2026 has closed, monitor maritime.dot.gov in early 2027. The 25% match requirement can often be met using state port authority or maritime workforce development funds, not just company cash.
Deadline & timing
FY2026 NOFO (DTMASSG26) closes May 11, 2026 — this is a firm deadline. Applications submitted through Grants.gov. New applicants must have an active SAM.gov registration with a valid UEI. Allow at minimum 10 business days for SAM.gov registration to activate. Note: this is an annual program; if this cycle has passed, monitor MARAD for FY2027 NOFO expected March–April 2027.
Programs that stack well
- State Maritime Workforce Grants
- EDA Public Works Grants (For Facility Infrastructure)
- SBA 504 Loans (Equipment Financing)
- USDA Business & Industry Loans (Rural Shipyards)
Related programs
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.