Budget in Brief Table of Contents | DOT.gov
Overview: The Maritime Administration’s (MARAD) mission is to strengthen the U.S. maritime transportation system to meet the economic and security needs of the Nation. Through the management of the Maritime Security Program, the Voluntary Intermodal Sealift Agreement program, the Ready Reserve Force, and War Risk Insurance program, MARAD helps support national security and defense mobilization by assuring access to ships and crews for Department of Defense mobilizations. MARAD’s mariner education and training programs, through the U.S. Merchant Marine Academy and six State Maritime Schools, provide most of the new, skilled U.S. merchant marine officers needed to serve the Nation’s defense and commercial maritime transportation needs. Through its ship disposal program, MARAD also continues to reduce the significant environmental risks posed by the presence of obsolete ships in the National Defense Reserve Fleet.
For FY 2009, MARAD is requesting $313 million to carryout its organizational mission.
| Maritime Administration Budget (Dollars in Millions) |
|||
|---|---|---|---|
| 2007 Actual |
2008 Enacted |
2009 Requested |
|
| Operations and Training | 112 | 122 | 118 |
| Ship Disposal | 21 | 17 | 18 |
| Maritime Security Program | 154 | 156 | 174 |
| Assistance to Small Shipyards | 0 | 10 | 0 |
| Maritime Gauaranteed Loans | 4 | 8 | 4 |
| Total | 291 | 313 | 313 |
| Summary of MARAD FY 2009 Increases and Decreases (Dollars in Millions) |
||||||
|---|---|---|---|---|---|---|
| Operations & Training |
Ship Disposal |
Maritime Security Program |
Assistance to Small Shipyards |
Maritime Guaranteed Loans |
Total | |
| FY 2008 Base | 122 | 17 | 156 | 10 | 8 | 313 |
| Pay Inflation Adjustments | 1 | 0 | 0 | 0 | 0 | 1 |
| Non-Pay Inflation Adjustments | 1 | 0 | 0 | 0 | 0 | 1 |
| Annualization of FY 2008 Initiatives | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-recurring Costs or Savings | 0 | 0 | 0 | 0 | 0 | 0 |
| Base Re-engineering, Reductions, or Adjustments | 0 | 0 | 0 | 0 | 0 | 0 |
| FY 2009 Current Services Levels | 124 | 17 | 156 | 10 | 8 | 315 |
| Program Initiatives | -6 | 1 | 18 | -10 | -5 | -2 |
| FY 2009 Request | 118 | 18 | 174 | 0 | 3 | 313 |
Operations and Training: The FY 2009 budget request includes $118 million to support the U.S. Merchant Marine Academy, State Maritime Schools, and MARAD operations. All three programs support national security and emergency response, reduced congestion, global connectivity, and environmental stewardship. The budget request includes $61 million for the U.S. Merchant Marine Academy (including $8 million for critical capital improvement projects), $11 million for the State Maritime Schools, and $46 million for MARAD Operations.
Maritime Security Program: The FY 2009 budget request includes $174 million for payments of approximately $2.9 million per ship, as authorized by the National Defense Authorization Act for Fiscal Year 2004. MARAD will continue to retain a fleet of 60 active, militarily useful, privately owned vessels to meet national defense and other security requirements, and to maintain a U.S. presence in international commercial shipping. The Maritime Security Program, together with the Voluntary Intermodal Sealift Agreement Program, the Ready Reserve Force and the War Risk Insurance program, assures the Department of Defense (DOD) access to ships and crews during DOD mobilizations, and helps ensure the efficient flow of military cargo through commercial ports.
Ship Disposal: The FY 2009 budget request includes $18 million to remove 14 obsolete ships from the National Defense Reserve Fleet for disposal. MARAD continues to pursue alternative disposal methods, such as artificial reefing initiatives, with other Federal agencies to minimize any impact on the human and natural environment. The budget request also includes funding to continue nuclear license management for the inactive Nuclear Ship SAVANNAH.
Maritime Guaranteed Loan Program: The FY 2009 budget request includes $3.5 million to fund the administration of the existing Title XI guaranteed loan portfolio.
Ready Reserve Force: The Ready Reserve Force (RRF) is funded in the DOD budget, but managed by MARAD. RRF vessels were used in Operation Enduring Freedom and continue to serve in Operation Iraqi Freedom. The initial activation of the vessels for Iraqi Freedom was the fastest and most efficient sealift in U.S. history. Vessels from the RRF also participated as part of the DOT emergency response team for Hurricane Katrina relief efforts on the Gulf coast. MARAD will continue to support national security by meeting DOD sealift requirements and readiness levels for the RRF with an estimated $277 million for FY 2009 activities.