$657M for Ferries Available From 3 FTA Grant Programs

Why It Matters

The grants will expand and modernize ferry services, especially in coastal and rural areas, boosting connectivity, economic activity, and the shift toward low‑emission transportation.

Key Takeaways

• $657M allocated for ferry terminals, routes, and vessels
• $105M for Passenger Ferry competitive grants
• $98M for Electric/Low‑Emitting Ferry pilot program
• $454M reserved for Rural Ferry Service program
• Application deadline May 11 2026 for all ferry grants

Pulse Analysis

The Federal Transit Administration’s latest grant announcement pours $657 million into the nation’s ferry system, targeting terminal upgrades, new routes, and vessel procurement. Funded through the 2021 Infrastructure Investment and Jobs Act, the money is split among three competitive programs: a $105 million Passenger Ferry grant, a $98 million Electric or Low‑Emitting Ferry pilot, and a $454 million Rural Ferry Service allocation. With the IIJA set to expire on September 30, these grants represent the final wave of federal capital for waterborne transit before a new surface‑transportation bill is enacted.

Coastal and Great‑Lakes states stand to benefit most, as the grants can accelerate electrification of ferry fleets and expand service to underserved communities. Electric‑powered vessels promise lower emissions, reduced fuel costs, and quieter operations—key advantages for environmentally conscious regions like Washington, California, and Maine. Rural ferry programs also address connectivity gaps, supporting commerce and tourism in isolated areas. By leveraging the $98 million pilot, transit agencies can test battery‑electric or hybrid technologies, creating a template for nationwide adoption.

The ferry funding dovetails with a separate $517 million bridge‑rebuilding initiative and $54 million for tribal and rural projects, underscoring a broader federal push to modernize multimodal infrastructure. As Congress negotiates the next multiyear transportation law, the timing of applications—due May 11—becomes critical for state and local agencies seeking to lock in capital before the current funding stream dries up. Successful projects will not only improve mobility but also generate jobs, stimulate local economies, and set a precedent for future federal‑state partnerships in sustainable transport.