The Federal Transit Administration announced $665 million in grants on Aug. 24 to modernize ferry terminals, vessels and supporting infrastructure across 14 states, targeting coastal and island communities that depend on water transportation as essential transit.
The funding comes from the Ferry Boat Program under the Bipartisan Infrastructure Law and represents one of the largest single investments in U.S. ferry infrastructure in recent memory, according to the DOT.
For millions of Americans — particularly in Alaska, Hawaii, Washington and New England — ferries serve as essential transportation infrastructure rather than recreational services, providing daily commuting access, commercial supply routes and emergency connections for island and coastal communities.
The grants are expected to improve vessel safety, reduce emissions from aging diesel ferries and upgrade terminal accessibility to comply with Americans with Disabilities Act requirements. Many ferry systems in the U.S. operate vessels that are decades old and approaching the end of their serviceable life.
Transportation Secretary Sean Duffy’s office framed the investment as supporting communities where water transportation is the only connection to the mainland or primary commercial corridors.
States receiving funding include those with significant island and coastal communities that lack alternative transportation connections. Alaska’s Marine Highway System, Washington State Ferries and ferry operations serving the New York metropolitan area are among the nation’s largest systems that could benefit from the investment.
The ferry grants complement broader infrastructure investments in roads, bridges, rail and transit systems funded through the Bipartisan Infrastructure Law. Ferry systems have historically received a smaller share of federal transportation funding relative to highway and transit programs despite serving critical connectivity roles.
Specific grant awards by state and project were detailed in the FTA’s announcement.