Shipbuilding and Maritime Manufacturing 

Congress and the Trump Administration are moving full steam ahead to revitalize the American defense and commercial shipbuilding and industrial manufacturing base.  Through funding, legislation, and trade agreements, Washington, D.C., is creating opportunities for businesses throughout the maritime supply chain, from shipyards to ship component manufacturers, to the businesses that fabricate the products used in ships. This page provides updates on recent federal action that affects maritime businesses.  

Funding

The recently enacted One Big Beautiful Bill Act provides an infusion of funding for defense and commercial shipbuilding and the maritime industrial base. The bill provides a total of $29 billion to the Department of Defense for defense and commercial shipbuilding and the maritime industrial base.  Importantly, this funding is available through September 30th, 2029 (which is different than the one-year funding cycle Congress typically uses). The funding for the Navy is for a Virginia-class submarine, two Guided Missile Destroyer ships, and T-AO oilers, among other defense priorities. Funding for the maritime industrial base is broken down as follows: 

  • $250 million for the production of turbine generators for the shipbuilding industrial base
  • $450 million for additive manufacturing for wire production and machining capacity for the shipbuilding industrial base
  • $492 million for next-generation shipbuilding techniques
  • $85 million for United States-made steel plate for the shipbuilding industrial base;
  • $50 million for machining capacity for naval propellers for the shipbuilding industrial base
  • $110 million for rolled steel and fabrication facility for the shipbuilding industrial base
  • $500 million for the adoption of advanced manufacturing techniques in the shipbuilding industrial base
  • $500 million for additional dry-dock capability
  • $50 million for the expansion of cold spray repair technologies
  • $450 million for additional maritime industrial workforce development programs
  • $750 million for additional supplier development across the naval shipbuilding industrial base
  • $250 million for additional advanced manufacturing processes across the naval shipbuilding industrial base
  • $300 million for ship-to-shore connectors

The Coast Guard will receive $25 billion for shore infrastructure, training facilities and homeports, Polar Security Cutters,  nine new Offshore Patrol Cutters, Arctic Security Cutters, depot level maintenance to sustain readiness, Fast Response Cutters, light and medium Icebreaking Cutters, long-range unmanned aircraft systems, maritime domain awareness including next-generation sensors, and three Waterways Commerce Cutters. 

In addition, on July 23rd, 2025, the Trump Administration announced that a new $550 billion fund was included in a trade agreement with Japan that would provide funding for defense and commercial shipbuilding, including new yards and modernizing existing yards.  The $550 billion fund would be financed by Japan and directed by the United States to priority areas, including critical minerals, semiconductors, energy, pharmaceuticals, and commercial and defense shipbuilding. The United States will retain 90% of the profits from this investment, according to the fact sheet. This is a novel concept, and the details of how it will operate and how much funding will be allocated to shipbuilding will be worked out during implementation.  

Policy

Bipartisan legislation, the SHIPS for America Act, aims to revitalize the U.S. Merchant Marine to transport vital goods and military cargo during times of conflict while reinforcing American supply chains in peacetime. This legislation entails a comprehensive strategy to ensure national oversight and consistent funding for the maritime industry, enhance the competitiveness of U.S.-flagged vessels, rebuild the U.S. shipyard base, and expand efforts to recruit, train, and retain skilled mariners and shipyard workers.  The bill is led by Senators Young (R-IN), Kelly (D-AZ), Kelly (R-MS), and Garamendi (R-CA).

In addition, the Trump Administration released an Executive Order on April 9th, 2025, to complement the legislative effort and establish an administration plan to coordinate shipbuilding efforts.  The plan is due by October 2025.  In July, the Administration announced that its shipbuilding efforts would be moved from the National Security Council to the Office of Management and Budget. 

Trade Penalties on Chinese Ships

In April 2025, the United States Trade Representative issued penalties to restore American shipbuilding and address China’s policies to dominate the maritime, logistics, and shipbuilding sectors.  In a sign of bipartisan support, the Trump Administration's action follows an investigation initiated by USTR under President Biden and supported by congressional Democrats. The Administration took the following action:

After 180 days:

  • Fees on vessel owners and operators of China based on net tonnage per U.S. voyage, increasing incrementally over the following years;
  • Fees on operators of Chinese-built ships based on net tonnage or containers, increasing incrementally over the following years; and
  • To incentivize U.S.-built car carrier vessels, fees on foreign-built car carrier vessels based on their capacity.

The second phase actions will not take place for 3 years:

  • To incentivize U.S.-built liquified natural gas (LNG) vessels, limited restrictions on transporting LNG via foreign vessels. These restrictions will increase incrementally over 22 years

Conclusion 

Washington is in the midst of a one-in-a-generation effort to revitalize the shipbuilding and maritime industrial base.  This bipartisan effort provides ample opportunities for businesses in the maritime and shipbuilding arenas, and McCarthy Consulting's experience and connections in Congress and the Administration help businesses ensure their specific needs are met.  Reach out to see how we can help your business.