The US Federal Transit Administration (FTA) has allocated US$665 million to 23 projects aimed at expanding and modernising ferry services across the United States and its territories. The funding will support the construction of new ferries, passenger terminal improvements and other infrastructure projects.
The programme includes projects in both urban and rural areas, with Alaska receiving the largest share of the latest federal investment. Seven projects in the state were selected for a combined US$410.5 million, representing more than 60% of the total funding.
The largest individual award, US$153.4 million, will support the replacement of the 52-year-old LeConte, a 300-passenger, 34-vehicle ferry operated by the Alaska Marine Highway System on routes in Southeast Alaska.
US Transportation Secretary Sean P. Duffy said the investment formed part of the administration’s wider effort to expand the US ferry fleet and increase transportation options for communities across the country.
Congresswoman Lisa Murkowski, a Republican from Alaska and one of the lead authors of the Infrastructure Investment and Jobs Act, said the more than US$410 million allocated to Alaska would support the state’s ferry infrastructure and advance the objectives established under the legislation.
Other projects receiving funding include Washington State Ferries’ Anacortes–San Juan Islands and Port Townsend–Coupeville services, which will receive US$7.2 million through the Washington State Department of Transportation to help cover vessel fuel costs. King County Metro Transit was awarded US$22.1 million for the expansion of its passenger-only ferry facility in Seattle.
The latest allocations come as the US ferry sector awaits further federal investment through the proposed BUILD America 250 Act, or HR 8870. The legislation passed the House Committee on Transportation and Infrastructure on May 22nd, 2026, and would provide a 5-year reauthorisation of federal surface transportation programmes covering roads, bridges, rail and ferry infrastructure.
Congressman Rick Larsen, a Democratic representative from Washington State and a co-sponsor of the bipartisan legislation, said the bill would provide US$1.7 billion in dedicated funding for ferry construction and repair. The proposed package includes an increase in the Federal Highway Administration’s Ferry Boat Program to US$932 million, together with US$625 million for the FTA’s urban ferry programmes and a further US$125 million for rural and insular ferry services.
Despite the proposed increase in federal support, the legislation faces an uncertain timetable. With the November 3rd, 2026 midterm elections approaching and a new Congress due to be sworn in afterward, there is considerable uncertainty over whether the bill will advance before the current congressional session ends.