Alaska ferry system awarded more than $410 million in federal funding

The Alaska Marine Highway System will receive more than $410 million in federal money, Gov. Mike Dunleavy announced Friday. The Alaska Department of Transportation and Public Facilities submitted six winning applications.

The largest award, $161.2 million, supports operations in more than 20 communities. It covers vessel operations, crew, fuel and maintenance under the AMHS 2045 Long-Range Plan.

The state also received four capital awards. It got $153.4 million to design and build a replacement for the M/V LeConte. It received $37.6 million for the Cascade Point Ferry Terminal, which the state says would shorten the Juneau-Haines-Skagway sailing by roughly a third. It won $33.4 million to modernize the Kake Ferry Terminal so it can accommodate more of the fleet, including larger vessels. It got $20.6 million to expand the Saxman Seaport, improving capacity, freight movement and connections among Ketchikan, Saxman, Metlakatla and Prince of Wales Island. A separate $4 million will fund customer service and operations modernization, including a new reservation system.

"The Alaska Marine Highway System is vital for Southeast Alaska. This investment will provide the resources to build on our successes for the past years to provide for decades of reliable service," Dunleavy said.

Sen. Dan Sullivan said he secured infrastructure-law language letting federal dollars cover ferry operating costs, not just capital projects. "For many of Alaska's 230 communities that are not connected by the road system, marine transportation isn't optional, it's how people travel to meet their everyday needs," Sullivan said.

Sen. Lisa Murkowski, a lead author of the Infrastructure Investment and Jobs Act, said the award "will help realize the vision I had." Under Secretary for Policy Ryan McCormack said "the Trump Administration is investing nearly half a billion dollars to bolster the Alaska Marine Highway System." Rep. Nick Begich called the projects meaningful long-term investments.

DOT&PF won three Rural Ferry Program grants totaling $177.4 million in September 2024 under the same law. The federal program lists AMHS as running 3,500 miles and serving more than 30 communities.

The Wrangell Sentinel reported in February that Murkowski told the Southeast Conference the state had received about $550 million in federal ferry dollars over three years, with roughly half replacing state dollars in the operating budget. She said the current AMHS budget counted $78 million not yet received. The release does not address that criticism.

AMHS has opened winter reservations for sailings running Oct. 1 through April 30, a schedule built around four vessel overhauls. The release does not say when the new funds will be disbursed.