By SUZANNE DOWNING
Aug. 21, 2026 – The Trump Administration has awarded more than $410 million to strengthen the Alaska Marine Highway System, including money to replace the aging M/V LeConte, support ferry operations and improve terminals serving rural Southeast Alaska.
Gov. Mike Dunleavy announced the funding Friday after the Alaska Department of Transportation and Public Facilities secured awards for all six applications it submitted.
The largest award is $161.2 million to support ferry operations across more than 20 communities. The funding will help cover vessel operations, crews, fuel and maintenance in accordance with the system’s 2045 Long-Range Plan.
Another $153.4 million will go toward the design and construction of a replacement for the M/V LeConte, one of the oldest vessels in the state ferry fleet. The LeConte was constructed in 1974 and has long provided service to smaller Southeast communities that cannot accommodate larger vessels. Its replacement is intended to improve reliability, accessibility and fuel efficiency while giving the state greater flexibility in scheduling its fleet.
“The Alaska Marine Highway System is vital for Southeast Alaska,” Dunleavy said. “This investment will provide the resources to build on our successes for the past years to provide for decades of reliable service.”
Dunleavy thanked state transportation employees for developing the successful applications, Alaska’s congressional delegation for securing the federal funding and President Donald Trump for recognizing the importance of investing in Alaska.
The awards also include $37.6 million for the Cascade Point Ferry Terminal north of Juneau. The proposed terminal would shorten sailings between Juneau, Haines and Skagway by roughly one-third, reducing travel time and ferry operating costs.
The Kake Ferry Terminal will receive $33.4 million for modernization work that will allow it to accommodate more vessels in the state fleet, including larger ferries.
Another $20.6 million will be used to expand the Saxman Seaport near Ketchikan, increasing freight capacity and improving transportation connections among Ketchikan and Saxman, Metlakatla and Prince of Wales Island.
The remaining $4 million will support customer-service and operational improvements, including modernization of the ferry reservation system.
US Transportation Under Secretary for Policy Ryan McCormack said the administration recognizes that ferries are an essential link for Alaskans who lack road access.
“Under President Trump and Secretary Duffy, the tens of thousands of Alaskans who depend on a safe and reliable ferry system will not be overlooked,” McCormack said. “From Juneau to the Aleutian Islands, we know residents rely on ferries to commute, move goods, and access healthcare.”
Alaska’s congressional delegation also welcomed the announcement.
Sen. Dan Sullivan said the $410 million represents a historic investment in Alaska’s ferries, terminals and day-to-day operations. He said he worked to include flexibility in the federal infrastructure law allowing federal money to cover ferry operating expenses in addition to 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 pointed to her role in crafting the Infrastructure Investment and Jobs Act, signed by President Joe Biden in 2021.
Congressman Nick Begich said reliable ferry service is fundamental to the economy and quality of life in Southeast and coastal Alaska.
“From replacing aging vessels to improving terminals and strengthening day-to-day operations, these projects represent meaningful investments in the long-term health of the Marine Highway system,” Begich said.
The Alaska Marine Highway System serves communities stretching from Southeast Alaska to the Aleutian Islands. Many of those communities have no road connections to the rest of the state and depend upon ferries to transport residents, vehicles, groceries, construction materials and other freight.
10 thoughts on “Trump administration awards more than $410 million for Alaska Marine Highway System”
The $410 million in funding for the Alaska Marine Highway System comes from federal grants awarded by the U.S. Department of Transportation. The money originates from the federal Infrastructure Investment and Jobs Act passed in 2021 under President Biden. So lets not give too much credit to the current administration. They would prefer to spend tax dollars on ballrooms, fireworks, and gold leaf bric-a -brac.
If Biden was still in office, his lackeys may well have awarded the money to border towns that helped smuggle in illegal immigrants. Trump awarded the money to the AMHS. The derangement seizure makes you look foolish.
the ballroom construction is privately funded
I am pleasantly shocked: Finally a dollar from the Feds that is not for the military or a small Native village.
With that kind of loot, Let’s put bars back on the ferries. In honor of T$. Thanks Trump!
Better idea would be allowing gambling aboard like the riverboat gambling elsewhere. Short trips could bea cheap entertainment industry
Right, where a drink the customer pays $7 for costs us about $20 to serve.
Its surprising this didn’t happen when Bootyjuice was the Secretary of Transportation, he could have been the Ferry Fairy
Like!
410 million of more debt. There ain’t no mo bread in the bread box. The hunter has been captured by the game.