The FERRIES Act converts several ferry pilots from the Infrastructure Investment and Jobs Act into standing federal grant programs, revises existing statutory grant authorities in Titles 23 and 49, and layers new multi-year authorizations and appropriations on top of those changes. It both expands capital programs for building ferries and terminals and establishes dedicated programs for urban passenger service, rural essential ferry service, and fleet modernization with an explicit shipyard job creation focus.
Why it matters: the bill moves the federal role in ferry transportation from episodic pilots to an enduring suite of grant programs, channels targeted capital dollars to shipyards and transit agencies, and directs new appropriations from the general fund (with some statutory references to the Highway Trust Fund). That combination elevates ferry infrastructure as a discrete national investment priority and creates immediate programmatic, procurement, and administrative demands for DOT, FTA, state recipients, and domestic shipbuilders.
At a Glance
What It Does
The bill codifies IIJA ferry pilots into permanent grant programs in chapter 53 of Title 49, increases statutory authorizations for ferry construction, creates a Ferry Fleet Modernization and Shipyard Job Creation program, and formally establishes a Ferry Service for Rural Communities program. It also changes apportionment language and specifies how funds are to be administered.
Who It Affects
State departments of transportation, designated recipients under sections 5307/5311, transit agencies that operate or plan ferries, U.S. shipyards and maritime manufacturers, and coastal/rural communities that rely on essential ferry links. Federal agencies (FHWA, FTA) will manage new grant portfolios and oversight obligations.
Why It Matters
By turning pilots into standing programs and attaching multi-year funding authorizations plus explicit appropriations, the bill shifts federal policy from ad hoc investments to sustained capital support—likely altering regional transit planning, domestic shipyard demand, and how states prioritize ferry projects.
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What This Bill Actually Does
The bill makes three kinds of statutory changes and then funds them. First, it amends Title 23 and Title 49 to increase and formalize existing ferry grant authorities.
The construction program in 23 U.S.C. 147(h) receives revised multi-year authorizations, and the Urban Passenger Ferry provision in 49 U.S.C. 5307 is amended to include a standalone authorization for passenger ferry grants. Separately, the IIJA pilot that supported electric and low-emitting ferries is renamed, broadened, and elevated from a pilot to a grant program focused on fleet modernization and shipyard job creation and is moved into Title 49 as a new section 5313.
The IIJA rural ferry grant language is likewise transferred into Title 49 as a new section 5308 and revised to clarify eligible rural service patterns.
Second, the statutory changes alter funding mechanics and prioritization. The bill increases a specific apportionment figure in section 5336(h)(1), changes which services get prioritized under the rural program (it requires at least 80 percent of funds to go to certain eligible services), and expands the definition of eligible entities for the fleet modernization program to include recipients and designated recipients under sections 5307 and 5311.
Those edits turn previously experimental authorities into full programs with clearer eligibility rules and distribution preferences.Third, Title II delivers concrete appropriations to operationalize the authorizations: the House text appropriates multi-hundred-million-dollar sums to FHWA and FTA lines and to each of the new or recast programs, splitting totals evenly across fiscal years 2027–2031. The appropriations language repeatedly states that these amounts come from the general fund of the Treasury and that a small percentage (1.5–2 percent, depending on the account) may be used for administration and oversight.
One notable statutory detail remains: the rural program’s authorization text references a $100 million-per-year carve-out from the Highway Trust Fund, even though the Title II appropriation language directs funds from the general fund—creating a statutory-designation versus appropriation-source mismatch that agencies will have to reconcile during implementation.
The Five Things You Need to Know
The bill codifies the IIJA electric/low‑emitting ferry pilot as a permanent “Ferry Fleet Modernization and Shipyard Job Creation Grant Program” and transplants it to 49 U.S.C. §5313.
It creates 49 U.S.C. §5308, the “Ferry Service for Rural Communities Program,” and requires that not less than 80 percent of program funds go to certain eligible basic essential ferry services.
Section 147(h) of 23 U.S.C. is rewritten to establish new multi‑year construction authorizations for ferry boats and terminal facilities over fiscal years 2027–2031.
The bill adds an authorization for urban passenger ferry grants under 49 U.S.C. §5307(h) and increases the apportionment figure in 49 U.S.C. §5336(h)(1) from $30 million to $100 million.
The Appropriations title provides discrete, multi‑year appropriations: $500M to FHWA for construction, $1.25B to FTA for passenger ferry grants, $1.25B for the rural program, and $500M for fleet modernization—each split across FY2027–2031—with administrative caps of 1.5–2 percent.
Section-by-Section Breakdown
Every bill we cover gets an analysis of its key sections.
Short title
Declares the Act’s short name as the Federal Enhancement and Revitalization of Reliable Infrastructure for Essential Seaways (FERRIES Act). This is a formal naming provision with no substantive effect on program mechanics, but it frames the package as a comprehensive, maritime-focused infrastructure initiative.
Construction of ferry boats and terminal facilities — increased authorizations
Rewrites the authorization schedule for the federal program that supports ferry boat and terminal construction under 23 U.S.C. 147(h). The amendment replaces the prior numbered authorization entries with a new five‑year authorization sequence. Practically, this raises the statutory ceiling for capital awards that states and other eligible entities can seek under the FHWA construction authority and signals stronger federal commitment to ferry capital projects.
Urban passenger ferry grants and apportionment change
Adds an explicit authorization for urban passenger ferry grants to subsection 5307(h), creating a dedicated authorization stream for passenger ferry projects administered through FTA mechanisms. It also amends section 5336(h)(1) to replace a $30 million apportionment figure with $100 million, changing the statutory distribution available to support certain ferry-related activities. That apportionment edit alters the statutory baseline agencies use when calculating available formula or discretionary allocations for small transit/Capital projects tied to ferries.
Ferry Fleet Modernization and Shipyard Job Creation Grant Program
Transforms the IIJA pilot for electric or low‑emitting ferries into a standing grant program, renames it to include shipyard job creation, broadens eligible recipients to include section 5307 and 5311 recipients, and deletes pilot‑specific language. The provision moves the authority into Title 49 (as section 5313), replaces experimental framing with an ongoing grant program structure, and increases the multi‑year authorization level. For applicants, this change means continued eligibility for fleet modernization grants on a non‑pilot basis and an explicit federal interest in domestic shipyard utilization.
Ferry Service for Rural Communities program
Converts the IIJA ferry service grants for rural areas into a permanent statutory section (5308) that defines eligible services, tightens how rural service patterns are treated (including language allowing services that connect at least two rural areas), and sets program priorities by statute (including an 80 percent floor directing most funds to a specified service category). The amendment also specifies a larger authorization total per year and includes a statutory statement that part of the authorized funding ‘‘shall be derived from the Highway Trust Fund,’' creating a funding designation within the authorization text.
Appropriations and administrative provisions to fund the programs
Provides appropriations to operationalize the new and recast programs: a multi‑year $500 million FHWA pot for construction, $1.25 billion to FTA passenger ferry grants, $1.25 billion for the rural program, and $500 million for fleet modernization, with each total split into equal annual allotments for FY2027–FY2031. The appropriations language repeatedly states funds are derived from the Treasury general fund, places small percentage caps (1.5–2 percent) on administrative uses, and declares that these amounts are additional to other appropriations and not subject to certain obligation limits in annual appropriations acts. That combination constrains agency admin budgets while delivering front‑loaded capital funding.
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Explore Transportation in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Coastal and island communities that rely on ferries — receive clearer, sustained federal capital support for maintaining and restoring essential links, enabling longer‑term service planning.
- State DOTs and designated recipients under sections 5307/5311 — gain new grant lines and larger statutory authorizations to pursue terminal and vessel projects and to apply for fleet modernization awards.
- U.S. shipyards and the domestic maritime manufacturing workforce — stand to gain from the program’s shipyard job creation emphasis and a predictable pipeline of federally funded newbuilds and retrofits.
- Transit agencies and ferry operators in urban areas — get a dedicated urban passenger ferry grant authorization that supports vessel purchases, terminal work, and service expansion within FTA administration.
- Rural transit-dependent populations — the new rural program and its statutory priority language increase federal capital access for basic essential ferry services that are otherwise difficult to fund.
Who Bears the Cost
- U.S. Treasury (general fund) — Title II appropriations repeatedly draw on the general fund to finance the large, multi‑year capital packages the bill creates.
- Highway Trust Fund (statutorily referenced) — the rural authorization text designates part of the program for HTF funds, creating potential future pressure on HTF balances if appropriations follow that route.
- Federal agencies (FHWA and FTA) — must staff and implement expanded programs with only small administrative allowances (1.5–2 percent), increasing oversight and grant management workload without proportional admin funding.
- U.S. shipyards and contractors — may face near‑term capacity constraints and competitive pressure to scale production quickly, which can raise bid costs or delay project schedules.
- Other transit priorities at state and local level — because the bill channels dedicated federal capital to ferries, agencies may need to rebalance local planning and budget priorities to align with new federal opportunities.
Key Issues
The Core Tension
The central dilemma is between rapid, visible capital investment—aimed at modernizing fleets and boosting domestic shipbuilding—and the long‑term sustainability and deliverability of ferry services: federal funds can buy new vessels and terminals, but they do not by themselves solve ongoing operating subsidies, nor do they immediately expand skilled shipyard capacity; pushing hard on capital now risks cost inflation, implementation delays, and persistent operating shortfalls.
The bill creates a practical implementation puzzle by coupling generous authorizations with narrowly prescribed administrative funding. Appropriations are explicit and sizeable, but Title II caps agency administrative allowances at 1.5–2 percent; grant programs that require project review, environmental compliance, and close monitoring may need more overhead than the statute anticipates, pushing costs onto recipients or slowing award timelines.
The move from pilots to permanent programs reduces latitude for experimental evaluation; programmatic lessons learned under a pilot model may be harder to pursue once permanent rules and statutory priorities are set.
Another unresolved issue is the mismatch between authorization text and appropriation sourcing. The rural program’s authorization language designates a $100 million‑per‑year Highway Trust Fund component, but the appropriation provisions in Title II specify general fund financing for the program totals.
That statutory tension leaves open whether future appropriations will follow the HTF carve‑out, whether the Department of Transportation will treat the HTF language as a direction for apportionment, or whether Congress will continue to fund these programs from the general fund. Finally, the scale‑up in capital funding will likely strain domestic shipyard capacity, creating risks of cost escalation and schedule slippage for vessel construction; policymakers will need to balance near‑term job and industrial benefits against higher unit costs and potential delays for critical ferry routes.
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