The Department of Transportation on Aug. 24 announced what it called a historic investment of $410 million in the Alaska Marine Highway System ferry network servicing the state.
Of the $410 million, $161 million will go toward ferry operations and maintenance, $153 million will be spent to replace aging fleet vessels, and $90 million will be used for terminal and seaport upgrades, the department’s official X account stated in a post.
The funding comes from the Infrastructure Investment and Jobs Act signed by former President Joe Biden in 2021 that set aside $912 million for public ferry systems over fiscal years 2022 to 2026.
The Alaska Marine Highway System (AMHS) is a ferry system spanning 3,500 miles of coastline that services more than 30 coastal communities that lack road connections to the rest of the state as well as the rest of the country. As such, it is a crucial part of Alaska’s transportation system.
Multiple Alaskan lawmakers welcomed the latest funding for the AMHS, according to an Aug. 21 statement from the office of Sen. Lisa Murkowski (R-Alaska).
“Growing up in Southeast Alaska, I know our waterways connect us to our neighbors,” Murkowski said in the statement. “When we have a thriving ferry system, our coastal communities can thrive. That is why the Alaska Marine Highway System has remained a priority of mine throughout my career, and why I continue to push our state and federal partners to ensure that our AMHS meets Alaskans’ needs.”
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The funding will ensure that AMHS remains a sustainable, stable service that can be used by Alaskans for several decades, the lawmaker said.
Over $161 million will go toward funding AMHS operations support for ferry services in more than 20 communities, including supporting crews, fuel, and maintenance.
More than $153 million will be spent on replacement works for the AMHS’s M/V LeConte vessel which is designed to carry 225 passengers. This is expected to improve reliability, accessibility, and long-term flexibility of the fleet.
Over $37 million will go for the Cascade Point Ferry Terminal, which is projected to shorten sailing time between Juneau, Haines, and Skagway locations by around a third. The Kake Ferry Terminal will get $33.4 million in federal funding for modernization that will allow it to accommodate more vessels.
The Saxman Seaport will receive more than $20 million for expansion to improve connections between various regions and freight movements.
Gov. Mike Dunleavy and Alaska’s congressional delegation welcomed the Trump administration’s funding in the rural ferry program, according to an Aug. 21 statement.
Data from the Federal Transit Administration shows the Alaska Department of Transportation & Public Facilities received more than $285 million in 2022 from the federal government for things such as building an electric ferry, running AMHS operations, and modernizing Alaska Marine Highway System vessels.
In 2023, the department was granted over $131 million for improving AMHS operations and building a new ferry. And in 2024, the federal government gave more than $177 million to improve AMHS operations, construct a ferry, and install wireless connectivity to ferry vessels.
In April, the Transportation Department announced a $657 million investment in America’s ferry services and infrastructure to launch new ferry routes, modernize terminal infrastructure, and fund new ferries.
“Under President Trump, America is building again and that includes our nation’s ferry fleet responsible for moving American families,” Transportation Secretary Sean Duffy said in the statement. “This investment will expand routes and fund new ferries to give American workers and families more transportation options in both rural and urban cities.”
