# Shipbuilding Innovation Act: Plain Language Summary

This bill creates a federal grant program to help American shipyards develop and build new types of ships that support clean energy projects. The government would provide up to $100 million per year from 2025 through 2029 to shipyards that want to design and construct specialty vessels—these are ships specifically built to support renewable energy initiatives like offshore wind farms. The bill also funds a study to understand the market opportunity for these vessels and requires annual reports to Congress on the status of American ships capable of supporting energy transition work.

The grants can be used for two main purposes: upgrading shipyard facilities and equipment to build these new specialty vessels, and actually constructing the ships themselves. Shipyards would need to contribute at least 20 percent of the project costs themselves, with the federal government covering up to 80 percent. The money cannot be used to buy land or construct buildings, only for equipment and vessel construction. Additionally, materials and parts used in these projects must be made in America—at least 70 percent of component costs must come from U.S.-made materials initially, increasing to 80 percent by 2029, though there are exceptions for items unavailable domestically or from allied countries.

The program is designed to move quickly. Once Congress appropriates money, the Maritime Administration must announce funding opportunities within 15 days and award grants within 120 days. This speed is meant to help American shipyards compete in the growing market for vessels that support offshore wind and other clean energy projects. By investing in this infrastructure now, the bill aims to create jobs in American shipyards and ensure the U.S. can build the specialized ships needed as the country transitions to renewable energy sources.