A ferry on water before snow-capped mountains.

DOT awards $175M to boost ferry facilities, services

August 18, 2025

The U.S. Department of Transportation announced last week $175 million in Federal Highway Administration (FHWA) Ferry Boat Program funding for 35 states, Puerto Rico, U.S. Virgin Islands, and American Samoa for fiscal year (FY) 2025.

The funding is set aside for areas where communities rely on ferry service, and bridges or tunnels would not be feasible. Ferry boat operators receive federal funding via their State Departments of Transportation to support construction, operation and maintenance of ferry boats and terminals.

The disbursements are based on the Federal Highway Administration’s formula-based allocation, rather than a competitive grant process. Since awards are essentially an annual entitlement based on service statistics, states with more ferry vessels and ferry riders accordingly receive a larger share of the funds.

Alaska, with its reliance on maritime routes, is the largest recipient with $38.5 million. The largest part of that, $37.6 million, goes to Alaska Marine Highway System, along with $605,428 for Ketchikan Gateway Borough and $295,594 for the Inter-Island Ferry Authority.

Louisiana is receiving nearly $8.5 million. About $3.7 million goes to the Louisiana Department of Transportation and Development, $3.2 million goes to Plaquemines Parish, $1.4 million goes to the New Orleans Regional Transit Authority, and $50,000 goes to the St. Mary Parish Council.

California’s allocation of $7.31 million is divided among several operators. The largest of these is the San Francisco Bay Area Water Emergency Transportation Authority, followed by Alcatraz Cruises, Catalina Express and seven others.

U.S territories may have smaller allotments, but some remote areas receive significant funding due to a need for connectivity in rural areas. American Samoa will receive $2.44 million through the Federal Highway Administration Virgin Islands Consortium. The same consortium will disburse $1.67 million to Guam, $1.19 million to Puerto Rico and $1.06 million to the U.S. Virgin Islands.

Active ferry networks support urban and rural transit, tourism and regional commerce. DOT officials state that in addition to being a vital transportation link, ferries also relieve congestion on nearby highways.


Photo by Matheus Guimarães from Pexels

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