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DOT details federal rural ferry awards, notes pending grants and risks to Marine Highway cash flow
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Summary
DOT officials told the Senate Finance Committee the IIJA rural ferry program has delivered substantial awards to Alaska but several grants are pending; the department warned that if federal funding is not reauthorized it could need to backfill tens of millions of dollars and outlined the status of key AMHS vessels.
The Department of Transportation and Public Facilities told the Senate Finance Committee that Alaska has received significant discretionary awards under the Infrastructure Investment and Jobs Act (IIJA) rural ferry program but several grants remain pending and reimbursements are contingent on established grant agreements.
Dom Pinone, director of program management and administration at DOT&PF, described the IIJA rural ferry program (section 71103) as a five‑year discretionary fund that authorized $200 million annually for ferry services connecting rural communities. "We've been awarded approximately $540,000,000 through this program," Pinone said, noting that one award went to American Samoa and that about $410 million of the IIJA authorization remains to be awarded to grantees in future years.
Pinone and DOT staff emphasized a technical but practical point: grants are typically reimbursement agreements. "Once we've established a grant, it's a reimbursement program," Pinone said. For awards that are pending, the state can incur expenses under pre‑award authority but must wait for the established grant contract to receive reimbursement.
Commissioner Ryan Anderson and other DOT officials described the status of vessels and terminal work: the Columbia remains in service as a mainliner and recently received Wi‑Fi upgrades; the Kennicott is at Everett for a roughly $25 million emissions/exhaust project; the LeConte is in an extended overhaul that DOT said may run into June; and the Metlakahtla/Matans?ka (transcript spelling varies) is under review for potential costly upgrades. DOT said estimates to bring some older vessels up to Coast Guard standards have in some cases exceeded $100 million, and the department is awaiting detailed reports to establish final scopes and costs.
Committee members expressed concern about the risk to the Marine Highway if the IIJA rural ferry program is not reauthorized or if grant deliveries are delayed in Washington. DOT officials said such a scenario could leave a gap the state might need to backfill—committee testimony referenced a potential shortfall on the order of roughly $70–72 million if federal support is not extended—and that the department is monitoring cash flow and reimbursement timing closely.
Senators urged DOT to provide immediate notice to the legislature if federal awards are delayed or frozen, because the Marine Highway operates with a constrained cash position and some operating and capital work depends on federal reimbursements. DOT said it will continue to track grant establishment and provide information to the committee as awards progress.
Ending: DOT and the committee agreed to continue coordination on grant establishment timing, vessel overhauls and contingency planning for potential federal funding pauses.
