Sponsors (9)
The bill expands federal support and grant eligibility for ferry vessels and terminals and allows private operators to earn regulated returns to spur more routes and private investment, trading greater mobility and infrastructure expansion against higher fares, potential taxpayer subsidies to private firms, and reduced public control or administrative uncertainty.
State and local governments, private ferry operators, and nearby communities can access federal funding (including Surface Transportation Block Grants) to build or acquire ferries and terminals, increasing service capacity and cross-state route options.
Commuters and residents in connected regions (both rural and urban) are likely to gain more ferry connections (vehicle and passenger), improving mobility and potentially reducing road congestion on linking highways.
Private ferry operators and investors can set fares to cover costs and earn a reasonable return, which encourages private investment and can support more sustainable ongoing operations.
Riders — including taxpayers, commuters, and residents of rural and urban communities — may face higher fares if private operators raise prices to cover costs and the permitted rate of return.
Taxpayers could be subsidizing privately owned ferry services when federal funds support private operators, raising concerns about public funds being used for private profit.
Allowing private ownership and operation can reduce public control over service levels, fares, and access compared with fully public ferries, potentially limiting accountability and equitable access.
Based on analysis of 2 sections of legislative text.
Makes privately and majority-privately owned interstate ferries and terminals eligible for federal participation, allows fare-setting to cover costs and a Secretary-determined reasonable return, and aligns terminal eligibility with STBG rules.
Official title: To amend title 23, United States Code, so that a privately or majority-privately owned ferry or ferry terminal facility is an eligible entity for purposes of participation in the Ferry Boat Program, and for other purposes.
Introduced April 6, 2026 by Nicholas LaLota · Last progress April 6, 2026
Allows privately owned and majority-privately owned interstate ferries and their terminal facilities to receive federal financial participation when the Secretary finds they provide substantial public benefits or meet surface transportation needs. Federal participation may include construction or purchase of ferries and terminals that operate between two adjoining States, and private operators may charge fares that cover costs, debt service, negotiated management fees, and a Secretary‑determined reasonable rate of return. Makes conforming edits to related highway program provisions to treat eligible ferry terminal facilities consistently for Surface Transportation Block Grant (STBG) and related program purposes, and delays the new eligibility under 23 U.S.C. §147 for one year after enactment.