Federal dredging funds for Santa Barbara Harbor removed from FY26 budget; city urges reinstatement

Santa Barbara’s waterfront director told the Harbor Commission that the Army Corps of Engineers’ FY26 budget omitted the harbor’s usual maintenance-dredging allocation, prompting an immediate lobbying effort to restore funding and a plan to use remaining FY25 resources strategically.

Mike Wilshire said the federal funding historically covered roughly $3 million to $4 million annually to maintain the federal navigation channel and to manage sediment that would otherwise accumulate. “We have been notified that our FY26 funding for Santa Barbara was removed,” Wilshire said. He added the loss was “a huge shock” because federal maintenance funding has been consistent for decades.

Wilshire described operational consequences: the federal channel is required to keep the harbor usable for commercial fishing, Coast Guard vessels and recreational navigation; if the channel silts in, Coast Guard and harbor-patrol operations would be constrained, commercial fishing could be disrupted and down‑coast beaches that rely on regular sand movement could erode.

City staff said the Army Corps remains responsive and that the city still has one funded dredge cycle available from FY25; staff intends to conserve that allocation and use it strategically when sediment levels and weather make the dredge most effective. Wilshire said the city has spent two months lobbying congressional offices, state senators and local officials for reinstatement and is coordinating with statewide maritime groups.

Wilshire outlined contingency options if federal funds are not restored: use the remaining city and waterfront reserves (an option that would deplete departmental reserves), seek city general fund assistance, form cost-sharing arrangements with regional partners, or request emergency dredging through the Army Corps’ emergency fund if navigation becomes hazardous. He emphasized staff’s view that dredging is not optional: “I really don't see a scenario where we are not gonna dredge the harbor,” Wilshire said; the remaining question is how the city finds the dollars.

Commissioners asked about the regional picture; Wilshire replied that other harbors have faced similar cuts or partial reductions and that statewide advocacy groups are engaged. He also warned that private dredging capacity is not guaranteed during regional emergencies and that costs may rise if contractors are in high demand.

The commission asked staff to continue aggressive lobbying and to report back on any reinstatement progress or financial alternatives.