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Port Orchard accepts $3.55 million federal grant for Bay Street reconstruction
Summary
The City Council unanimously authorized acceptance of $3,554,000 in FHWA congressionally directed spending to help complete the Bay Street reconstruction; the project has an estimated total cost of $10.7 million and requires a local match and federal compliance through 2034.
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The Port Orchard City Council on May 12 adopted a resolution authorizing the city to accept $3,554,000 in Federal Highway Administration congressionally directed spending for the Bay Street Reconstruction Project.
Director Ryan told the council the award, secured with support from U.S. Senator Maria Cantwell and confirmed by the Washington State Department of Transportation on April 29, 2026, will help rebuild downtown Bay Street infrastructure, addressing failing utilities and flooding risks tied to sea level rise. The total project cost is estimated at $10.7 million; the city has already committed $4.2 million and previously secured $3.0 million in federal funding. The new award provides the remaining federal support needed to move the project into construction planning in 2026.
Ryan said the grant requires a 13.5% local match, formal obligation by Sept. 30, 2029, and full expenditure by 2034, and that the project must remain in the city’s Transportation Improvement Program and comply with FHWA and WSDOT reporting and ADA requirements. Council members voiced support for moving the project forward and the resolution passed unanimously.
Next steps: staff will incorporate the award into project planning and federal reporting processes and advance design and permitting work to prepare for construction planning.

