Shipbuilding Innovation Act

The Shipbuilding Innovation Act creates a federal grant program to fund U.S. shipyards developing specialty vessels for energy transition projects, such as offshore wind support vessels. It allocates $100 million annually (2025-2029) for grants covering up to 80% of project costs, requiring 70-80% of materials to be U.S.-made (with limited exceptions). Grants support shipyard infrastructure upgrades and building vessels with energy-efficient propulsion systems, while prohibiting land/building purchases and mandating strict reporting. Shipyards applying must demonstrate project need, methodology, and leverage existing programs, with annual reports to Congress on U.S.-flagged vessel capabilities for energy initiatives.