A wave of new federal money could help change the course of Alaska’s beleaguered state ferry system, but only if it is invested wisely, stakeholders say:
Alaska appears to be in prime position to capture well more than $1 billion in federal funding for ferries that many stakeholders hope is the catalyst for long-sought change in the Alaska Marine Highway System and elsewhere.
“There’s basically a billion dollars set aside for the next five years,” said Robert Venables, executive director of Southeast Conference, a community development group. “It’s historic and game-changing if we use it wisely.” The state is also set to receive $73 million from $342 million in grants aimed at ferry vessel and terminal construction through an existing capital program, according to Murkowski’s office.Congress failed to extend child tax credit expansion, but Murkowski says she’s open to negotiationsFor context, the Alaska Marine Highway System has had an annual operating budget of roughly $140 million in recent years.
The $200 million-$250 million Tustumena replacement vessel has been designed since 2016 but construction of the 330-foot ferry had been on hold as Alaska struggled to deal with ongoing budget deficits. “DOT participates but really this board is going to be integral in the decision-making process,” Anderson said.
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