The MARAD Small Shipyard Grant Program: What Equipment Projects Can Qualify

The U.S. Maritime Administration (MARAD), part of the Department of Transportation, runs the Small Shipyard Grant program. It funds capital and related improvements that make qualified small shipyards more efficient, competitive and productive. For a yard weighing new production equipment, including automated welding, it is one of the most relevant funding sources available.

This is a general primer, not legal or grant advice. MARAD decides eligibility and awards, and program rules can change from year to year. Always read the current Notice of Funding Opportunity (NOFO).

What the program funds

The program supports capital and related infrastructure improvements at eligible shipyard facilities. Funded projects have commonly included cranes and lifting equipment, cutting and welding equipment, buildings and covered work areas, dry docks and launch equipment, and training. The focus is equipment that improves productivity, safety or quality in ship construction, repair and conversion.

How much a grant covers

For FY 2026, federal funds could not exceed 75 percent of an eligible project's total cost. The remaining non-federal share comes from the applicant or other non-federal sources, and showing that the yard can commit its share is part of a strong application. Check the current NOFO for future cycles.

Award scale

MARAD's FY 2026 award list totals $35.18 million across 45 shipyards. The FY 2026 round is closed, so the practical work now is preparing for the next notice. The program is competitive, and individual awards are modest next to large yard investments, so applicants should size projects to fit.

Who decides eligibility

Eligibility is set by statute and the annual funding notice, and MARAD evaluates every application. Program materials have historically weighed the size of the shipyard, the type of work it performs and the economic benefit of the project. The authoritative, current criteria are in MARAD's published materials.

Framing an automated welding project

A strong application for a welding cell usually explains five things clearly:

• The problem. Which work is constrained today: which weld families, what throughput, which quality or safety issues.
• The project. What equipment is being bought, how it will be installed and how it fits the production flow.
• The benefit. How it raises efficiency, capacity or quality, ideally against measured baselines.
• Cost and timeline. A credible budget and schedule, including the non-federal share.
• Readiness. Evidence the yard can complete the project within the grant period.

Where a weld-family study helps

The benefit case is often the weakest part of an equipment application. "The robot will double throughput" persuades no one without data. A weld-family study measures the current work, defines the target cell and estimates the benefit on the yard's own numbers.

In Catfish Vanguard's design-partner program, the weld-family study supplies yard-specific technical inputs the applicant can adapt for its application. Catfish does not determine eligibility or awards, and the shipyard remains the applicant.

Timing

Funding notices follow an annual cycle with a fixed application window. Projects must be defined, priced and documented before the window closes. Measuring weld families and designing a cell takes weeks, so yards targeting a future cycle should start the technical and economic work early.

Cautions

• Do not incur project costs before MARAD obligates funds and the grant agreement is executed, unless MARAD gives prior written approval.
• Work from current program documents; older guidance may be out of date.
• Treat any vendor's statements about grants, including ours, as context only. MARAD is the authority.

For a small yard, a grant covering up to three quarters of a project can change the economics of new equipment. A clear, data-backed project description is the foundation of a good application.