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Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap

Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap
Labor Dept launches multimillion-dollar shipbuilding training plan as US races to close China gap

The U.S. Labor Department is investing nearly $14 million to create advanced shipbuilding training programs aimed at rebuilding the domestic workforce. Delaware County Community College and Massachusetts Maritime Academy will receive $8 million and $5.8 million, respectively, to partner with international and domestic industry firms. The initiative seeks to establish standardized, internationally recognized curricula and expand apprenticeships as part of a broader push to narrow the gap with major shipbuilding nations.

The U.S. Department of Labor has announced nearly $14 million in grants to develop advanced shipbuilding training programs, part of a broader effort to rebuild American ship construction capacity and reduce reliance on foreign suppliers.

Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap
The Labor Department is distributing nearly $14 million to U.S. institutions as part of a new initiative to train American workers to enter the shipbuilding industry.

Funding and Partnerships

The awards designate $8 million to Delaware County Community College to partner with Hanwha Philly Shipyard and South Korean partners, and $5.8 million to the Massachusetts Maritime Academy to collaborate with Finnish firms and Bollinger Shipyards. These programs will deliver hands-on training in shipbuilding trades and seek to expand apprenticeship opportunities nationwide.

Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap
Construction continues on large-sized liquefied natural gas (LNG) carriers at the Daewoo Shipbuilding and Marine Engineering facility in Geoje Island, South Korea, in 2018.

Goals and Rationale

The Labor Department says the initiative will support “cutting-edge training programs” developed in coordination with allied partners and will work toward a standardized, internationally recognized trade curriculum. The goal is to create a pipeline of skilled U.S. workers capable of supporting both commercial and defense shipbuilding needs.

Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap
President Donald Trump told lawmakers in March that he would "resurrect" both commercial and military shipbuilding.

"Restoring America’s maritime dominance can’t be accomplished without skilled American workers," Secretary of Labor Lori Chavez-DeRemer said in a statement, noting the projects align with President Trump’s executive directives to revitalize the shipbuilding sector.

Strategic Context

U.S. shipbuilding capacity lags significantly behind major producers. The Center for Strategic and International Studies estimates China builds more than 50% of global tonnage, South Korea about 29% and Japan roughly 13%; the rest of the world accounts for roughly 4.4%, while the United States represents about 0.1% of global shipbuilding output. A March CSIS report warned that the erosion of U.S. and allied shipbuilding capabilities threatens military readiness and economic opportunity and enhances China’s global power-projection capabilities.

Specialized markets also show heavy foreign concentration: Finnish designers account for around 80% of icebreaker designs worldwide, and Finnish shipyards build more than 60% of those vessels, according to the Wilson Center.

Policy Measures and Next Steps

In April, President Trump signed an executive order directing federal agencies to explore tools to strengthen the shipbuilding industrial base, including use of the Defense Production Act, the Department of Defense Office of Strategic Capital, a proposed Maritime Security Trust Fund, and incentives for allied shipbuilders to invest in U.S. capacity. Agencies were also instructed to develop a maritime action plan and for the U.S. Trade Representative to recommend steps to address alleged anticompetitive behavior by China in the shipbuilding sector.

Officials say the new Labor Department grants are an early step in a broader, multi-agency effort to expand training, increase apprenticeships, and rebuild a resilient domestic shipbuilding workforce.

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Labor Department Commits Nearly $14M to Train U.S. Shipbuilders as Washington Moves to Close China Gap - CRBC News