Credit Subsidy Availability & History
MARAD is limited in the amount of new loans it may approve by the “credit subsidy” appropriated by Congress. This appropriation does not expire at the end of a fiscal year but remains available until it is expended by the program. This credit subsidy is expended by MARAD for an initial credit risk premium for any new loan approval.
The approximate credit subsidy available for Title XI is $136 million, as of March 2025. Based on the “average risk” for previously approved projects, MARAD could support approximately $1.8 billion in new loan approvals. This estimate is based on the following assumptions: (i) financing provided by the Federal Financing Bank (FFB); (ii) 25-year maturity; (iii) MARAD’s historical recovery rate; (iv) the interest rate set at the Treasury rate which achieves a zero-financing credit subsidy; and (v) MARAD’s historical average upfront fee.
Below is a table listing Title XI funding amounts by year.
Title XI Credit Subsidy Funding History
|
Fiscal Year |
President Budget (Requested) |
Enacted |
|---|---|---|
| FY 2025 | $0 | $50,586,000 |
| FY 2024 | $0 | $50,586,000 |
| FY 2023 | $0 | $0 |
| FY 2022 | $0 | $0 |
| FY 2021 | ($27,900,000) | $0 |
| FY 2020 | $0 | $0 |
| FY 2019 | $0 | $0 |
| FY 2018 | $0 | $27,000,000 |
| FY 2017 | ($5,000,000) | $0 |
| FY 2016 | $0 | $5,000,000 |
| FY 2015 | $0 | $0 |
| FY 2014 | $0 | $35,000,000 |
| FY 2013 | $0 | $0 |
| FY 2012 | $0 | $0 |
| FY 2011 | $0 | $4,990,000 |
| FY 2010 | $0 | $5,000,000 |
| FY 2009 | $0 | $0 |
| FY 2008 | $0 | $5,000,000 |
| FY 2007 | $0 | $0 |
| FY 2006 | $0 | $5,000,000 |
| FY 2005 | $0 | $0 |
| FY 2004 | $0 | $0 |
| FY 2003 | $0 | $25,000,000 |
| FY 2002 | $0 | $33,000,000 |
| FY 2001 | $2,000,000 | $29,934,000 |
| FY 2000 | $6,000,000 | $5,977,000 |
Last updated: Friday, April 11, 2025