U.S. Department of Transportation (DOT) through the Maritime Administration (MARAD) provides various types of financial assistance to support the six State Maritime Academies (SMAs). This support includes student incentive payments, workforce development, direct payments, supply of training ships, fuel reimbursement payments, ship sharing funds, maintenance and repair funding, the vessel operations revolving fund, and special projects such as the National Security Multi-Mission Vessel Program (NSMV).

Student Incentive Payment Program

The Student Incentive Payment Program (SIP) is a federally funded initiative through MARAD that provides financial support to students (also called cadets) enrolled in the Strategic Sealift Officer Program (SSOP) at one of six State Maritime Academies (SMAs) becoming licensed officers in the U.S. Merchant Marine. The SSOP provides the opportunity for Navy officers to obtain a valid U.S. merchant mariner’s license and subject matter expertise in sealift, maritime operations, and logistics necessary to fulfill many of the Navy’s combat support missions. To further support defense requirements incentives are available to SSOP cadets through SIP. Those enrolled can receive up to $32,000, which must be used to offset the cost of tuition, uniforms, books, and subsistence.

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Workforce Development

MARAD partners with the military, government, and the private maritime industry sector to address the challenges facing the maritime workforce by introducing or continuing initiatives such as the Military to Mariner Program, Student Incentive Payment funding for SSO Cadets, Fellow and Intern Programs, and industry engagement.

In addition, MARAD provides career related services to USMMA and SIP cadets in an effort to further support fulfillment of their service obligation. Career services are offered as an additional resource to each academy's career advisors and is subject to annual funding. For further information please contact your respective academy or MARAD or click here.

Direct & VORF Payments

MARAD provides direct assistance to the six State Maritime Academies (SMAs) each fiscal year. This funding ensures the U.S. has a continuous supply of capable and well-trained U.S. Merchant Mariners. Direct payments help the SMAs offset the cost to train credentialed USCG Merchant Mariner officers and strengthen the ability to maintain high quality faculty, innovative facilities, and state of the art technology.

The Secretary of Transportation utilizes the Vessel Operations Revolving Fund (VORF) to carry out duties and powers related to vessel operations, including charter operation, maintenance, repair, reconditioning, and improvement of merchant vessels under the jurisdiction of the Secretary. The process includes the distribution of funds to SMAs and USMMA from proceeds of the sale of scrapped vessels.

Training Ships

Training ships provide cadets with the ability to accumulate sea time and complete training exercises to obtain a license credential. Under the provisions of section 1304(c) of the Act, the Maritime Administrator may furnish any suitable vessel in order for cadets to achieve this.  Training cruises are critical to ensure Midshipmen/Cadets obtain the necessary sea time to qualify to take the written examination to earn their USCG MMC.

Currently, each academy utilizes one of MARAD's existing training ships to perform sea cruises. Occasionally, academies share training ships when needed.

National Security Multi-Mission Vessel (NSMV) Program

MARAD provides ships from the National Defense Reserve Fleet (NDRF) as training vessels for the six maritime academies. The agency is currently working to replace the current vessels for the SMAs using the NSMV design that will better meet the academies’ training needs. The design of the NSMV was established as the most economical approach, considering initial acquisition, lifecycle and programmatic costs. 

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