BLUF: The Maritime Administration (MARAD) cut the Title XI Program application fee from $5,000 to $1,000 and eliminated 14 of 34 program regulation sections in an interim final rule effective August 28, 2026.

MARAD published the rule in the Federal Register as an interim final rule with request for comments, revising the regulations that govern the Title XI Vessel and Shipyard Financing Program — the federal loan guarantee program that helps U.S. shipyards and vessel owners finance new construction, reconstruction, repair, and shipyard modernization projects. The agency says the changes implement statutory updates, align the program with modern federal credit practices, and streamline a regulation that had grown to 34 sections across multiple subparts.

Why it matters: A lower application fee reduces the up-front cost of entry for shipyards and vessel owners seeking a MARAD-backed loan guarantee, which can extend financing terms up to 25 years. Consolidating the regulation from 34 sections to 20, with subpart headings removed, changes how applicants and their counsel need to cite and navigate program requirements going forward. Companies in the maritime industrial base that also hold federal contracts should track how MARAD implements the revised eligibility and documentation rules during the comment period.

By the numbers:

• Application fee: cut from $5,000 to $1,000
• Commitment fee: one-quarter of one percent (0.25%) of the guaranteed note amount, or $250,000, whichever is less
• Financing term for new vessel construction: up to 25 years from delivery
• Financing term for shipyard projects: up to 25 years from completion
• Regulatory sections: cut from 34 to 20 (14 eliminated)
• Comment period: 60 days, closing October 27, 2026

The rule is codified at 46 CFR Part 298. To qualify, an applicant must be a U.S. citizen eligible to document a vessel under U.S. registry, and the vessel must be U.S.-flagged and built or repaired in a shipyard located within the United States. Reconstructed or reconditioned vessels carry a guarantee term running to the earlier of 25 years from original delivery or the vessel's remaining useful life; repaired vessels carry a shorter term running to the earlier of five years from original delivery. Because the rule took effect immediately as an interim final rule, the revised terms already apply, though MARAD is accepting public comments through October 27, 2026 before finalizing.

Source: Federal Register