Title 11, for them what're fortunate enough not to know, provides U.S.-taxpayer backing for maritime-related construction, usually ships. If the ship makes money, the money is never expended. If the ship (or company) goes bankrupt, the U.S. taxpayer loses money. It is the same concept as a VA mortgage guarantee. In both cases, the projects are those which private lenders deem too risky.
Query: why should the taxpayer, making something like $50k/year, be underwriting a loan which the finance professionals won't touch?
American Flagship Project Challenges Obama Administration | Maritime News | Maritime Executive Magazine
And I'd be enthusiastically cheering this decision if this was an indication that POTUS44 was trying to lead the US out of these dunderheaded concepts. Unfortunately, this just means the administration doesn't like this particular concept; not the whole idea.
Interesting side-note: these jobs would almost certainly be unionized, so you'd think the administration would be anxious to play to an important part of its base. But nah...