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Alaska Marine Highway seeks calendar‑year 2026 funding, reliant on FTA grant
Summary
DOT officials told the Senate DOT Finance Subcommittee that the Alaska Marine Highway’s 2026 operating request depends on a Federal Transit Administration grant and existing state funds, and outlined fund balances and budget structure changes.
For the record, Dom Pinone, Director of Program Management and Administration for the Department of Transportation, told the Senate DOT Finance Subcommittee on March 12, 2025, that the Alaska Marine Highway System (AMHS) is seeking calendar‑year 2026 operating funds and is “relying on a $76,200,000 federal appropriation” from the Federal Transit Administration (FTA) for its proposed budget.
Pinone said the AMHS represents about 20% of the DOT operating budget and accounts for 32% of the department’s unrestricted and designated general funds when the system is isolated. “The Marine Highway system is 20% of our operating budget at $159,400,000 … and we've isolated just the unrestricted general funds and the designated general funds, the Marine Highway system accounts for 32% of those funds at $82,100,000,” he said.
The budget presentation explained the system now operates on a calendar‑year funding schedule that began in 2022 after multi‑year appropriations provided a bridge from the prior fiscal structure. Pinone said that calendar‑year funding gave the system a “longer runway” to finalize schedules earlier, which the department associated with higher fare revenues.
Why it matters: AMHS serves coastal communities where alternative travel is limited; the department said federal operating grants and state fund balances are critical to maintain current service levels and to fund capital projects such as vessel replacements.
Key funding details and balances presented by DOT staff: - Proposed calendar‑year 2026 funding request includes roughly $61,400,000 of unrestricted general fund (UGF) and $20,700,000 of Marine Highway designated general funds, plus the proposed $76,200,000 FTA operating grant. - The department reported using FTA operating grants in recent years: roughly $30.9 million (2023), $38 million (2024) and $66 million (calendar year 2025) and plans to apply for the 2026 opportunity when it is announced. - The Marine Highway Operations Fund balance was reported at about $30,200,000; of that, roughly $4,000,000 is currently available for appropriation above existing obligations and projected receipts of about $6,000,000 before the next fiscal year. - The Vessel Replacement Fund was reported at about $43,400,000, with approximately $19,600,000 of that available for appropriation and a portion already committed as local match for a replacement vessel.
DOT staff also said the department is proposing to change the budget structure so multi‑year appropriations appear in the language section of the bill. Pinone said that change would provide a single annual closeout, allow roll‑forward during shortfalls, and preserve unspent funds when surpluses occur, with immediate accountability to the Legislature the next session.
Subcommittee discussion focused on the FTA grant’s future; Pinone told the panel the federal program has been temporarily paused at the federal level and that “we are, of course, advocating with our congressional delegation” and expect to apply if a notice of funding opportunity is issued.
The presentation also referenced Federal Highway Administration support that had been used in recent years. No formal action or vote occurred during the hearing; staff said follow‑up would include distribution of requested materials and that DOT would provide additional answers to specific policy questions after the meeting.
