Alaska has been awarded over $410 million in federal funding from the Trump Administration to significantly enhance the Alaska Marine Highway System (AMHS), targeting crucial improvements for rural Southeast Alaska.
Governor Mike Dunleavy announced the historic investment on August 21, 2026, highlighting six successful applications submitted by the Alaska Department of Transportation and Public Facilities. The funding includes $161.2 million for AMHS operations support across more than 20 communities, covering vessel operations, crew, fuel, and maintenance.
A substantial $153.4 million is allocated for the design and construction of a replacement for the M/V LeConte, aiming to improve reliability, accessibility, and fuel efficiency. Additionally, $37.6 million will go towards the Cascade Point Ferry Terminal, which is expected to shorten the Juneau-Haines-Skagway sailing by approximately one-third and reduce operating costs.
Further investments include $33.4 million for the Kake Ferry Terminal modernization to accommodate larger vessels, $20.6 million to expand the Saxman Seaport for improved capacity and freight movements, and $4 million for customer service and operations modernization, including a modern reservations system.
Governor Dunleavy emphasized the AMHS's vital role, saying, "This investment will provide the resources to build on our successes for the past years to provide for decades of reliable service." U.S. Transportation Under Secretary for Policy Ryan McCormack added, "From Juneau to the Aleutian Islands, we know residents rely on ferries to commute, move goods, and access healthcare."
Senators Dan Sullivan and Lisa Murkowski, along with Congressman Begich, also welcomed the funding, underscoring the importance of marine transportation for Alaska's coastal communities and the long-term sustainability of the AMHS.