The FY 2025 Small Shipyard Grant Program, administered by the Maritime Administration (MARAD) under the U.S. Department of Transportation, offers competitive funding opportunities to small shipyards across the United States. With a total of $8.75 million available, this program is designed to support capital improvements and maritime training programs to boost technical skills, enhance productivity, and encourage competitive operations in the shipbuilding and ship repair sectors. These grants aim to improve the quality and efficiency of operations within small shipyards and bolster workforce development in associated industries.

The primary objectives of the program are to increase operational efficiency, foster competitive capabilities, and support quality ship construction, repair, and reconfiguration. Training grants are also awarded to promote the development of workforce skills critical to these operations. Eligible applicants are defined under 46 U.S.C. 54101(h) and must be small shipyards located at a single geographic site, employing no more than 1,200 production workers. Additionally, shipyard facilities must be actively engaged in the construction, repair, or reconfiguration of vessels that are 40 feet or longer for commercial/government use, or at least 100 feet for non-commercial use.

Eligible uses of the grant funds include new, recipient-owned capital improvement items, as well as maritime training programs conducted by or for the benefit of eligible applicants. Grants cannot be used for land acquisition or building construction. No more than 25 percent of the total funds may be allocated to any shipyard with more than 600 production workers in a single geographic location. Applicants must provide at least 25 percent of the total project cost from non-federal sources, and in-kind contributions are not accepted as matching funds.

Applicants must submit their grant applications through Grants.gov by 11:59:59 p.m. EDT on May 15, 2025. Each applicant may submit one application, which can include multiple projects. Required documents include a completed SF-424 form, detailed project descriptions, quantitative efficiency analyses, project timelines, cost breakdowns with vendor quotes, and financial documentation proving the ability to meet matching requirements. Additional items such as environmental impact statements, domestic content compliance strategies, and corporate financial health reports must also be included.

Applications are evaluated based on responsiveness to eligibility requirements and merit criteria. MARAD assesses how well projects align with goals for increased efficiency, quality, and productivity. Projects offering a higher percentage of matching funds, strong labor standards, and U.S.-sourced materials are given preference. The selection process involves technical reviews by maritime experts, followed by evaluations from a Senior Review Team and final selection by the Secretary of Transportation, ensuring geographic fund distribution.

Award announcements will be made no later than 120 days after the enactment of the FY 2025 appropriations act. Following selection, MARAD will initiate grant agreements, with funding disbursed on a reimbursement basis post-approval of expenses. Projects must comply with applicable federal laws and performance monitoring requirements, including civil rights compliance and national policy mandates on domestic preference and critical infrastructure security.