United States Marine Highway Grants

Mitigate landside congestion, expand transportation options, and realize public benefit and external cost savings by awarding Marine Highway grants to qualified applicants to implement designated Marine Highway projects.

The assistance will be used to expand the use of water transportation along designated Marine Highway Routes. Grant funds are typically used to procure cargo/material handling equipment; to build or modify barges or vessels; or for planning efforts related to increasing freight on Marine Highway Routes.

Eligible applicants include states, Political subdivision of a State or a local government, United States metropolitan planning organization, United States Port Authority, Tribal government, United States private sector operators of marine highway projects or private sector owners of facilities, including an Alaska Native Corporation. Private applicants require an endorsement letter from the current marine highway route sponsor.

Eligible applicants include states, Political subdivision of a State or a local government, United States metropolitan planning organization, United States Port Authority, Tribal government, United States private sector operators of marine highway projects or private sector owners of facilities, including an Alaska Native Corporation. Private applicants require an endorsement letter from the current marine highway route. Eligible beneficiaries include those entities defined in OMB 2CFR 200.

Eligible projects for Marine Highway Program grants are Marine Highway Transportation Projects or components of Projects that 1) provide a coordinated and capable alternative to landside transportation; mitigate or relieve landside congestion; promote marine highway transportation; or use vessels documented under Chapter 121; and 2) develop, expand, or promote Marine Highway Transportation or shipper use of Marine Highway Transportation. This program will not provide funding to improvements to port or land-based infrastructure, including equipment, outside the United States. In addition, this program will not provide funding to raise sunken vessels, construct buildings or other physical facilities, or acquire land, unless the Secretary determines that such activities are necessary to carry out the Marine Highway Transportation Project for which such assistance is provided. If an applicant requests funding to raise sunken vessels, construct buildings or other physical facilities (as "facility" is defined in Section A.3.), or acquire land, it must explain why the activities are necessary to carry out the Marine Highway Transportation Project. Refer to Section D.2.b. of this notice for further information on documentation needed to justify these activities. Improvements to Federally owned facilities are ineligible under the FY 2024 USMHP. This program will not fund the purchase or installation of fully automated cargo handling equipment, or the installation of terminal infrastructure that is designed for fully automated cargo handling equipment, if the Secretary determines that such equipment would result in a net loss of good jobs or reduction in the quality of jobs within the port or port terminal.

Applicants shall demonstrate to the satisfaction of the Secretary that the funds received will be spent efficiently and effectively. MARAD expects grant recipients to expend funds within five years after obligation. Method of awarding/releasing assistance: Grants are expended upon invoicing.

Preapplication coordination is required. Environmental impact information is not required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance if the State has selected the program for review. As stated in the Notice of Funding Opportunity, "Section 55601 of Title 46 of the United States Code directs the Secretary to establish a Marine Highway Transportation grant program. From the Notice of Funding Availability, "Requirements of the National Environmental Policy Act (NEPA) may apply. Applicants should consult 40 CFR Section 1500 if there are any questions regarding NEPA requirements. An application must detail whether the project will significantly impact the natural, social and/or economic environment. If the NEPA process is completed, an applicant must indicate the date of, and provide a Web site link or other reference to, the final Categorical Exclusion, Finding of No Significant Impact or Record of Decision. If the NEPA process is underway but not complete, the application must detail where the project is in the process, indicate the anticipated date of completion and provide a website link or other reference to copies of any NEPA documents prepared".

The criteria will be considered in the evaluation process, which were established in the final rule. This information will have been provided by applicants during the project designation process. No additional applicant input is required to address these criteria. These criteria establish the degree to which projects are expected to: 1. Reduce external cost and provide public benefit, 2. Offer a lower-cost alternative to increasing land-based capacity in the Corridor, and 3. Demonstrate the likelihood of becoming self-supporting in a specified and reasonable timeframe. Also, the following factors will be taken into consideration: 1. Applicants shall demonstrate to the satisfaction of the Secretary that the funds received will be spent efficiently and effectively, 2. Applicants shall demonstrate to the satisfaction of the Secretary that a market exists for the services of the proposed project as evidenced by contracts or written statements of intent from potential customers, 3. An applicant shall provide at least 20 percent costs from non-Federal sources unless the application is from a tribal government, is a rural project, or an application from a US territory with a match of $200,000 or less, and, 4. In awarding grants or cooperative agreements under the program, the Secretary shall give preference to those projects or components that present the most financially viable transportation services and require the lowest percentage Federal share of the costs. While the criteria above were generally addressed in the original Marine Highway Project application requirements, these more specific requirements may warrant submission of additional information in response to this Notice of Funding Availability. It is important that this information is available to the Department during the grant evaluation process.

All applicable Federal laws, rules and regulations will apply to projects that receive Marine Highway Grants or Cooperative Agreements. How soon after award a project is expected to expend Grant Funds and start construction, acquisition or procurement will be considered on a case-by case basis and will be specified in the project-specific grant agreement. The Department reserves the right to revoke any award of Marine Highway Grant funds and to award such funds to another project to the extent that such funds are not timely expended and in accordance with the project schedule.

The Notice of Funding Opportunity must be published no later than 60 days following enactment of the appropriation. The applications will be due approximately 60 days following publication of the Notice of Funding Opportunity. Awards must be announced no later than 270 days following the enactment of the appropriation.

The Department's ability to obligate funds for Marine Highway Grants and Cooperative Agreements is dependent upon current available appropriations. The Consolidated Appropriations Act of 2024 (Public Law 118-42) signed by the President on March 6, 2024 appropriated $5,000,000 for the Marine Highway Program.