(JUNEAU, Alaska) – The Alaska Department of Transportation and Public Facilities (DOT&PF) has been awarded three competitive Rural Ferry Program grants by the Federal Transit Administration (FTA), totaling $177.4 million to enhance the Alaska Marine Highway System (AMHS). This significant funding, provided through the Bipartisan Infrastructure Law, marks a historic investment in upgrading and improving Alaska’s ferry services.
DOT&PF secured these grants to boost the reliability and efficiency of the AMHS, as well as to enhance customer experience. The awarded grants include:
- $106.4 million to construct the new Tustumena Replacement Vessel
- $5 million to implement system-wide wireless connectivity between ports
- $66 million to perform system-wide operational improvements
The $106.4 million grant for the Tustumena Replacement Vessel, combined with previous grants and other secured funds, enables DOT&PF to fully finance the $319 million project. This new state-of-the-art ferry will replace the 60-year-old Tustumena, ensuring continued and improved service to Homer, Seldovia, Kodiak, and rural southwest Alaska, while enhancing safety and reliability for these communities.
“I’m proud of the collaborative efforts of our DOT&PF and AMHS teams in competing for and securing these crucial funds,” said Alaska DOT&PF Commissioner Ryan Anderson. “This funding allows us to complete the Tustumena Replacement Vessel, continue improving our operations, and install public Wi-Fi at our terminals and on our vessels. We are deeply appreciative of this investment in our communities.”
The $5 million grant will fund the installation of Wi-Fi across ferry vessels and terminal facilities statewide, improving connectivity for residents and businesses in coastal communities, and supporting regional economic growth. The $66 million grant will support ongoing operational improvements throughout the AMHS.
This funding is part of nearly $300 million in grants announced by the FTA to enhance ferry services in 14 states, with a focus on advancing energy-efficient technology and supporting local economies.