Building commercial ships in U.S. shipyards supports the maritime industry, which plays a vital role in national security. However, U.S. commercial shipbuilding has been in decline for decades. The Maritime Administration (MARAD)
Building commercial ships in U.S. shipyards supports the maritime industry, which plays a vital role in national security. However, U.S. commercial shipbuilding has been in decline for decades. The Maritime Administration (MARAD) has four financial assistance programs to help change that – U.S.-built vessels generally cost more than foreign-built ones.
It's not clear if these programs are meeting the needs of the industry or national security, says the Government Accountability Office (GAO).
MARAD hasn't established measurable goals, such as the number of ships built because of a program. It can't assess the programs' performance without them.
The Federal Ship Financing Program generally offers loan guarantees for vessel construction at U.S. shipyards. In the last five years, the program executed two loan guarantees for two vessel owners totaling nearly $400 million.
The two tax deferral programs, the Construction Reserve Fund Program and the Capital Construction Fund Program, allow vessel owners or operators to defer paying tax on certain eligible deposits that are placed into an account and can be used to fund projects at U.S. shipyards. In 2024, seven vessel owners or operators had a Construction Reserve Fund program account, and 137 vessel owners or operators had a Capital Construction
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