On April 9, 2025, President Donald Trump signed Executive Order 14269 “Restoring America’s Maritime Dominance” and called for the development of a “Maritime Action Plan” (“MAP”). Under the leadership of the Secretary of State, the Assistant to the President for National Security Affairs, and the Director of the Office of Management and Budget, and in coordination with the Secretary of War, the Secretary of Commerce, the Secretary of Labor, the Secretary of Transportation, the Secretary of Homeland Security, and the United States Trade Representative, the Trump administration recently released the strategic Maritime Action Plan aimed to support the construction of domestically made commercial vessels in domestic shipyards in an effort to increase the national industrial shipbuilding capacity.

Driving Domestic Shipbuilding and Economic Growth

The MAP will also serve to support the nation’s responsibility to revitalize and rebuild domestic maritime industries, enhance the related workforce, promote and protect our national security, and establish and expand domestic economic prosperity.

The MAP aims to address issues with the shipbuilding industry resulting from withering federal as well as private investment and outdated and burdensome federal regulations leading to a deficit of domestic vessel production.

The MAP outlines four strategic pillars for action:

1. Rebuilding U.S. Shipbuilding Capacity and Capabilities;
2. Reforming Workforce Education and Training;
3. Protecting the Maritime Industrial Base; and
4. Supporting National Security, Economic Security, and Industrial Resilience.

Key Policy Priorities and Industry Impacts

Among the goals stated within those pillars are concepts to:

1. Increase domestic shipbuilding capacity.
2. Incentivize investment in U.S. shipyards.
3. Address supply and demand issues for the domestic shipbuilding industry.
4. Expand mariner training and education to address workforce challenges and modernization of the U.S. Merchant Mariner Academy.
5. Reform federal maritime regulations to encourage the use of domestic industry to serve maritime needs domestically by adding additional requirements to use U.S. flag vessels for shipping cargo and requiring port maintenance taxes from foreign imports and vessels to help support domestic infrastructure.

Unlocking Capital Through New Financing Mechanisms

The larger executive order contains language not only seeking to enhance the items addressed in the MAP, but also to provide creative and tangible alternatives and options to existing and traditional vessel finance modalities. For example, Section 10 of Executive Order 14269 is entitled, “Shipbuilding Financial Incentives Program,” and establishes financial flexibility to incentivize private investment not only in the building of vessels, but also in the fabrication and construction of various commercial components, parts, and appurtenances to be used in those vessels.

There is also a capital improvements focus, to enhance capabilities and facilities at commercial vessel shipyards. Additional language highlights capital improvements to commercial vessel repair facilities and drydocks through grants and government-backed resources, such as the Federal Credit Reform Act and similarly compliant loans and loan-guarantee structures. Proponents are hopeful that these proposals may replace or supplement existing programs with similar objectives, including the Small Shipyard Grant Program and the Federal Ship Financing (Title XI) Program.

What This Means for the Maritime Industry

If successful, the instant initiatives might lead to increased investment in and physical plant expansion and development in our nation’s domestic shipyards, ports, vessel fleets, and shipping industry as a whole.

For more information about the content and potential impact of Executive Order 14269, the MAP, or shipbuilding and vessel finance incentives, please contact Stephen Hanemann and Ambrose Stearns in Kean Miller’s International Trade and Marine Asset Finance Practice.

Stephen Hanemann and Ambrose Stearns are members of Kean Miller’s Offshore Energy & Marine group, based in the firm’s New Orleans and Lafayette offices, respectively. They advise a wide range of clients – including Louisiana-based and multistate energy companies – on complex international trade, corporate and transactional matters, regulatory compliance, and commercial agreements, delivering practical, business-focused counsel across all stages of growth.