September 1, 2026
The Maritime Administration is updating and streamlining regulations for its vessel and shipyard financing program, as the Trump administration presses the quest to expand the national maritime base.
The U.S. Maritime Administration is updating and streamlining regulations for its Vessel and Shipyard Financing Program, as the Trump administration presses the quest to expand the national maritime base.
Marad provides loan guarantees to finance U.S.-flagged vessel construction, with the exception of fishing vessels, and for shipyard modernization and improvement projects.
Established under Title XI of the Merchant Marine Act of 1936, the program, ensures payment of debt obligations to U.S. shipowners “for the purpose of financing or refinancing U.S. flag vessels constructed, reconstructed, repaired, or reconditioned in U.S. shipyards; and U.S. shipyards for the purpose of financing advanced shipbuilding technology and modern shipbuilding technology of a privately-owned shipyard facility located in the U.S.”
An interim final rule announced in the Aug. 28 Federal Register eliminates 14 of the current rule’s 34 sections. Marad noted the program’s old rule “does not conform to modern credit standards or accurately reflect the current process for evaluating applications. At the time the Title XI Program regulations were first promulgated in 1978, Federal credit standards for agencies did not exist.”
Thus, the new rule incorporates modern Office of Management and Budget (OMB) credit program requirements that reduce the federal government’s risks associated with credit default.
Another step is reducing a $5,000 application fee to $1,000, which Marad reasons “will lower barriers to entry for certain participants with limited resources for capital investment.”
The rule changes also include restructuring of the former loan investigation fee – now dubbed the “commitment fee” – which Marad says will eliminate “unnecessarily high initial costs for larger projects.” The commitment fee is capped at the lesser of 0.25% of the guaranteed debt or $250,000, with eligible professional-services expenses subtracted.
Overall, one of the most significant reforms are streamlining Marad Title XI regulations by removing 14 of 34 sections of the existing regulations – which date from 1978. For imported equipment, shipbuilders’ projects now may advance through processing and approval while a waiver for the foreign-sourced equipment is still under review.
Marad officials conclude that under the federal Administrative Procedure Act, an extended public notice and comment period is unnecessary for the interim rule. The revisions “do not impose new, substantive requirements on the public; rather, they codify existing administrative processes, statutory updates, and established Federal fiscal practices,” according to the agency.
While the interim final rule is effective immediately, Marad is still open to public comments “in response to this interim final rule in determining how to proceed with any final rule,” according to the agency. It will take written comments until Oct. 27.