# 2026-19367: Feds Revamp Ship Funds: No More Location Limits, Dormant Closures 2026-19367, Capital Construction Fund Revision, is a Federal Register proposed rule from Transportation Department, Maritime Administration published 2026-09-22, effective MARAD invites the public to comment on this proposed rule and information collection. Comments should be filed on or before November 23, 2026. Late-filed comments will be considered to the extent practicable.; PRIA reads it as touching household money (as of 2026-09-29). - Canonical: https://policyrisk.com/federal-register/2026-19367 - As of: 2026-09-29 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-19367 - Title: Capital Construction Fund Revision - Type: Proposed Rule - Agencies: Transportation Department; Maritime Administration - Citation: 91 FR 60054 - Published: 2026-09-22 - Effective: MARAD invites the public to comment on this proposed rule and information collection. Comments should be filed on or before November 23, 2026. Late-filed comments will be considered to the extent practicable. - Comments close: 2026-11-23 - Significant: no - Touches household money: yes - Regulation identifier numbers: 2133-AC06 - Last updated: 2026-09-29 ## In one line Feds Revamp Ship Funds: No More Location Limits, Dormant Closures ## Summary The Maritime Administration wants to update the Capital Construction Fund rules to include all U.S.-built ships in domestic and foreign trade, remove location limits, and clarify project timelines. They’ll also allow funds for certain purchases and close inactive accounts after 10 years. These changes affect ship owners and operators, with comments open until November 23, 2026, so get ready to weigh in! ## Abstract MARAD proposes to revise its regulations governing the filing of applications and administration of Capital Construction Fund (CCF) Program accounts. The proposed rule would (i) conform the regulations to recent statutory amendments extending CCF Program application to all U.S. built vessels engaged in United States domestic or foreign commerce, (ii) eliminate limitations on CCF Program availability to certain geographic trades, (iii) clarify the maximum allowable completion time for reconstruction projects, and (iv) provide for funds to be used for acquisitions under certain circumstances. In addition, the NPRM proposes a mechanism to terminate inactive accounts, accounts with a zero balance, and accounts where a CCF Program objective has failed to commence within a 10-year period. The proposed rule would also correct numerous citations, modernize text, update agency contact information, and remove obsolete references. ## Effects PRIA read - Eligibility Expanded to All U.S.-Built Ships: benefit, medium. If you own or operate U.S.-built vessels, the proposed rule would let all U.S.-built ships engaged in United States domestic or foreign commerce use the Capital Construction Fund (CCF) Program and removes prior geographic trade limits. This change implements Section 3544 of the 2023 National Defens… - CCF Funds Can Be Used for Acquisitions: benefit, medium. You could use CCF funds to acquire vessels or interests in certain cases: buy a new vessel from the constructing shipyard; buy a vessel more than one year old if substantial reconstruction will be completed within 18 months of withdrawing CCF funds; acquire a contract to construct a new qualified v… - Reconstruction Rules: $3M Aggregate Threshold: benefit, medium. The rule lets reconstruction costs be aggregated across multiple vessels so reconstruction projects collectively can meet a $3,000,000 minimum program threshold. The rule also disallows reconstruction projects for a vessel that is more than 25 years old at the time of withdrawal. - 36-Month Construction/Reconstruction Deadline: benefit, low. Construction or reconstruction projects funded through CCF must be completed within 36 months from the date work first commences, unless MARAD consents to a different schedule. This sets a clear maximum project timeline for CCF-funded work. - Automatic Termination for 10-Year Inactivity or Zero Balance: benefit, medium. If a Schedule B project has not started within 10 years of establishing an Agreement, or if an Agreement's account balance is zero 10 years after establishment, MARAD may consider the Agreement inactive and subject it to termination. MARAD proposes this mechanism to address obsolete agreements and… - Applicant and Vessel Citizenship and Manning Requirements: cost, medium. To be eligible, an applicant must be a U.S. citizen and must own or lease eligible vessels (or be party to a construction contract). CCF-funded vessels generally must be documented in the United States and manned with United States citizens. - Prohibited Uses and Non-Qualified Operations: cost, low. The rule bars certain objectives and uses of CCF funds: CCF funds cannot be used to pay principal on existing indebtedness, and MARAD will not approve applications that propose certain unacceptable objectives. It also lists non-qualified operations such as using vessels as fixed housing/restaurants… ## Related documents - [2026-12547](https://policyrisk.com/federal-register/2026-12547): Tanker Security Program, 2026-06-23 - [2026-20761](https://policyrisk.com/federal-register/2026-20761): Request for Comments on the Renewal of a Previously Approved Information Collection: War Risk Insurance, Applications, and Related Informat…, 2026-10-09 - [2026-20760](https://policyrisk.com/federal-register/2026-20760): Request for Comments on the Renewal of a Previously Approved Information Collection: Application and Reporting Elements for Participation i…, 2026-10-09 - [2026-20584](https://policyrisk.com/federal-register/2026-20584): Request Notice: Use of Foreign-Built Small Passenger Vessel in United States Coastwise Trade, M/V BACK OFF, 2026-10-08 - [2026-20587](https://policyrisk.com/federal-register/2026-20587): Request Notice: Use of Foreign-Built Small Passenger Vessel in United States Coastwise Trade, M/V BEAR PAW, 2026-10-08 - [2026-20588](https://policyrisk.com/federal-register/2026-20588): Request Notice: Use of Foreign-Built Small Passenger Vessel in United States Coastwise Trade, M/V BACK OFF, 2026-10-08 ## Sources - [2026-19367 on federalregister.gov](https://www.federalregister.gov/documents/2026/09/22/2026-19367/capital-construction-fund-revision) - [2026-19367 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-09-22/pdf/2026-19367.pdf) ## Related - [Previous: 2026-19361, Periodic Reporting](https://policyrisk.com/federal-register/2026-19361) - [Next: 2026-19370, Part 572; Anthropomorphic Test Devices; Test Device for Human Occupant Restrain…](https://policyrisk.com/federal-register/2026-19370) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-19367 (as of 2026-09-29).