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Updated January 27, 2022
Ferry Programs in the Department of Transportation

Ferries provide transportation services in a wide variety of
settings and for many purposes. The main types of ferry
service in the United States are commuter passenger service
in urban areas, and highway vehicle carriage in rural areas
where a bridge is unavailable. Coastal and island regions,
such as Alaska, the U.S. Virgin Islands, Puget Sound, and
New England, can be especially dependent on ferries for
both passenger and freight transportation. There are also
many ferries that provide service mainly for recreational
purposes, including several in national parks. Overall,
ferries play a minor role in the U.S. transportation system,
providing about 1% of public transportation trips in 2019.
The U.S. Department of Transportation (DOT) supports
ferry services through both highway and public
transportation programs. Generally, federal funds are
eligible for capital projects, including buying and
refurbishing ferries, and building and rehabilitating ferry
terminals and maintenance facilities. Ferries must be built
domestically according to a law dating to 1886 (46 U.S.C.
§55103). In certain circumstances, federal funds may be
used for operating expenses. The programs discussed here
are intended for permanent ferry operations. Temporary
ferry operations may be eligible under other programs, such
as DOT's highway and public transportation Emergency
Relief programs.
Ferry Systems
According to the Bureau of Transportation Statistics,
ferries, prior to the Coronavirus Disease 2019 (COVID-19)
pandemic, annually served about 126 million passengers
and 27 million vehicles. Three states-New York,
Washington, and California-accounted for more than half
of ferry passenger boardings, and the state of Washington
alone accounted for more than 40% of vehicle boardings
(Table 1).
Ferry operators, reporting one or more reasons for
providing service, listed commuter transit most often (67%
of operators), followed by transportation for
pleasure/recreation (65%), roadway connections (29%),
emergency services (27%), island access to mainland
(23%), and national park access (23%).
Both public and private entities operate ferry service, but
the public/private distinction can be complicated. About
40% of ferry operators are public agencies, and about the
same share of vessels is owned publicly. A larger
proportion of ferry terminals, about 70%, is publicly
owned, indicating that many public terminals serve
privately owned ferry operators and vessels. Furthermore,
publicly owned vessels and terminals are sometimes run
privately. In a few cases, privately owned vessels and
terminals are run publicly.

Table I. Top 10 States for Ferry Passenger and
Vehicle Boardings, 201 7
Passengers                    Vehicles
NY             28,348,259      WA           11,488,050
WA             27,493,805      NY            2,164,453
CA             15,657,080      LA            2,021,741
MA             7,784,885       TX            1,778,178
NJ             6,494,024       MI            1,082,962
TX             5,449,355       VA            956,720
LA             3,949,472       MA            876,154
GA             3,857,943       IL            828,052
IL             3,388,347       NC            703,247
VA             2,499,787       CA            505,158
U.S., Total    126,239,031     U.S., Total 27,010,994
Source: Bureau of Transportation Statistics, National Census of
Ferry Operators, 2018.
Infrastructure Investment and Jobs Act
The Infrastructure Investment and Jobs Act (IIJA; P.L. 117-
58) authorized and appropriated funding for surface
transportation programs for FY2022-FY2026. The act funds
ferries through both dedicated programs and broader
highway and public transportation programs. The IIJA more
than tripled annual dedicated ferry funding compared with
the previous authorization act (unadjusted for inflation).
The IIJA provided $2.3 billion specifically for ferries,
comprising $0.7 billion in contract authority from the
Highway Trust Fund and $1.6 billion in general fund
appropriations. The bill also authorized another $1.3 billion
specifically for ferries from the general fund, subject to
future appropriations (Figure 1).
Figure I. Dedicated Ferry Funding in the IIJA
FY2022-FY2026
Highway Trust Fund, Authorized a General Fund, Appropriated  General Fund, Authorized
$ in billions
$0.  $0.5  $1.0  $1.5  $2.0  $25  $2.0  $3.5  $4.9
FHWA, FeBoat     0.9
FTA, Ferry Boat Di Scretin-  0.2
FTA  Electric/tow  emitting  r  0.5
PTA, Rural Ferry           ).-
 t tue  n.6
Source: Infrastructure Investment and Jobs Act (P.L. 117-58).

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