USDOT Awards $175 Million for Electric Ferry Boats and Rural Coastal Transit Terminals

WASHINGTON, DC — The United States Department of Transportation (USDOT) Federal Transit Administration (FTA) announced the award of $175 million in competitive grants through the Ferry Programs, delivering capital to 18 coastal and island municipal transit operators across 12 states.

Modernizing Maritime Transit with Zero-Emission Electric Vessels

The funding packages provide capital to construct 15 hybrid and all-electric passenger ferries, upgrade marine terminal rapid-charging berths, and construct passenger boarding walkways in Puget Sound (Washington), Southeast Alaska, New York Harbor, and the Outer Banks (North Carolina). Marine transit modeling indicates electric ferry conversions reduce operating fuel costs by 65% while eliminating diesel exhaust around crowded coastal commuter terminals.

Transportation Secretary Pete Buttigieg stated that ferry services provide vital highway lifelines for island and coastal communities, affirming that federal grants make maritime travel cleaner, faster, and more dependable.

Ferry System Operators and Shipbuilders Support

Washington State Ferries and the Alaska Marine Highway System praised the grants for modernizing aging vessel fleets.

Domestic shipyard trade associations commended the Buy America requirements, securing union marine fabrication jobs in coastal shipyards.

Shipyard Construction Schedule

Vessel construction contracts will be awarded to American commercial shipyards in November 2026, with first hybrid vessel launches scheduled for late 2027.