Alaska DOT&PF Receives $177.4 Million Grant to Modernize Ferry Services
A recent federal grant provides the remainder of funding needed to replace “Trusty Tusty,” MV Tustumena, which has been serving Alaskans for sixty years.
Photo Credit: Alaska Department of Transportation and Public Facilities
The Federal Transit Administration awarded three competitive Ferry Service for Rural Communities Program grants totaling $177.4 million to the Alaska Department of Transportation and Public Facilities (DOT&PF) to enhance the Alaska Marine Highway System (AMHS). This funding, provided through the Bipartisan Infrastructure Law, marks a historic investment in upgrading and improving Alaska’s ferry services.
Funding Secured for New Ferry
The grants will be used to boost the reliability and efficiency of the AMHS and enhance the customer experience. The awarded grants include $106.4 million to construct a new MV Tustumena replacement vessel, $5 million to implement system-wide wireless connectivity between ports, and $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 sixty-year-old Tustumena, ensuring continued and improved service to Homer, Seldovia, Kodiak, and rural southwest Alaska, while enhancing safety and reliability for these communities.
Current Issue
May 2026
“I’m proud of the collaborative efforts of our DOT&PF and AMHS teams in competing for and securing these crucial funds,” says Alaska DOT&PF Commissioner Ryan Anderson. “This funding allows us to complete the Tustumena Replacement Vessel, continue improving our operations, and install public Wifi at our terminals and on our vessels. We are deeply appreciative of this investment in our communities.”
A $5 million grant will fund the installation of Wifi across ferry vessels and terminal facilities statewide, improving connectivity for residents and businesses in coastal communities, and supporting regional economic growth. A $66 million grant will support ongoing operational improvements throughout the AMHS.
This funding is part of nearly $300 million in grants announced by the Federal Transit Administration to enhance ferry services in fourteen states, with a focus on advancing energy-efficient technology and supporting local economies. DOT&PF oversees nine ferries serving thirty-five communities.
