Construction Differential Subsidy

Summary of Construction Differential Subsidy

An economic subsidy offered by the U.S. government to vessel operators to encourage the building of ships in American shipyards. Recognizing that American labor and material costs are generally higher than those in many other countries, Title XI of the Merchant Marine Act of 1936 empowers the Maritime Administration to subsidize U.S. shipbuilding costs up to 50 percent.

(Main Author: William J. Miller)