FTA Ferry Grants: $657 Million for Passenger Ferry, Low-Emission, and Rural Ferry Programs (FY 2026)

The Federal Transit Administration (FTA) has announced $657 million in competitive grant funding across three ferry programs for Fiscal Year 2026. This joint Notice of Funding Opportunity covers the Passenger Ferry Program, the Electric or Low-Emitting Ferry Pilot Program (Low-No Ferry), and the Ferry Service for Rural Communities Program (Rural Ferry). Whether you're looking to replace aging vessels, electrify your fleet, or establish essential ferry service in rural areas, this NOFO offers a path to significant federal funding.

Three Programs, One Application

This NOFO covers FY 2025 and FY 2026 appropriated funding across three distinct programs. Applicants use a single Supplemental Form and can submit a project to more than one program if it qualifies. If a project is selected for funding under multiple programs, FTA will decide which program funds it.

Program Descriptions

1. Passenger Ferry Program ($105 Million)

Funds capital projects to purchase, construct, replace, or rehabilitate ferries, terminals, related infrastructure, and equipment in urbanized areas (populations of 50,000+). This includes electric or low-emitting ferry vessels and related infrastructure. The goal is to improve the condition and quality of existing passenger ferry services, support new services, and modernize ferry boats, terminals, and facilities.

• At least $9 million must go toward low- or zero-emission ferries and related infrastructure
• Up to 0.5% of the federal request may be used for workforce development training

2. Low-No Ferry Program ($98 Million)

Dedicated to capital projects for the purchase of electric or low-emitting ferry vessels and related infrastructure in urbanized or rural areas. This program supports the transition away from diesel-powered ferries toward cleaner propulsion technologies.

• Eligible for both urban and rural ferry operators
• Workforce development is not eligible under this program
• Zero-emission projects must include a Zero-Emission Fleet Transition Plan

3. Rural Ferry Program (~$454 Million)

The largest of the three programs, providing funding for capital, planning, and operating assistance to ensure basic essential ferry service in rural areas. This is the only program that funds operating costs, making it particularly valuable for rural communities that depend on ferry service.

• Capital projects for purchasing, constructing, replacing, or rehabilitating ferries, terminals, and equipment
• Planning projects for eligible rural ferry service
• Operating assistance for eligible rural ferry service
• Workforce development may be eligible as an operating expense

Who Can Apply?

Eligible applicants vary by program:

Passenger Ferry Program

• Any eligible recipient of 49 U.S.C. 5307 funding (Urbanized Area Formula Program)
• States and federally recognized tribes that operate a public ferry system in an urbanized area

Low-No Ferry Program

• Any eligible recipient of 49 U.S.C. 5307 funding operating a public ferry in an urbanized area
• Any eligible recipient of 49 U.S.C. 5311 funding operating a public ferry in a rural area
• States and federally recognized tribes operating public ferry systems

Rural Ferry Program

• States and U.S. territories in which eligible service is operated
• Local governments and tribes are not eligible as direct applicants but may be subrecipients to an eligible state or territory

Eligible service for the Rural Ferry Program is defined as passenger ferry service that operated on a regular schedule (published seasonal or year-round) at any time between March 1, 2015 and March 1, 2020, with additional requirements related to route distance and funding sources depending on the appropriation.

Cost Sharing

The federal cost share varies by project type, with enhanced rates for clean energy and accessibility projects:

• Standard capital projects: 80% federal / 20% local match
• CAA or ADA compliant vessels: 85% federal / 15% local match
• Zero-emission equipment and ADA accessibility components: 90% federal / 10% local match (must itemize eligible components)
• Rural Ferry planning projects: 80% federal / 20% local match
• Rural Ferry operating assistance: No maximum federal share, but applicants must meet a maintenance of effort requirement (provide at least 75% of the average annual operating funds provided during 2017-2019)

Eligible Projects

Capital Projects (All Programs)

• Purchase, construct, replace, or rehabilitate ferries
• Ferry terminal construction and rehabilitation
• Related infrastructure and equipment upgrades
• Electric or low-emitting ferry vessels and charging infrastructure
• Vehicle ferries are eligible if they also accommodate walk-on passengers

Rural Ferry Program Only

• Planning projects for eligible rural ferry service
• Operating assistance for eligible rural ferry service
• Workforce development activities (as an operating expense)

How Applications Are Evaluated

FTA evaluates applications based on the information provided in the Supplemental Form. Applications are rated as Highly Recommended, Recommended, or Not Recommended. The six primary evaluation criteria are:

1. Demonstration of Need

Describe the age and condition of vessels, facilities, or equipment to be replaced or rehabilitated. For expansion or new service, explain the capacity constraint or ridership demand that supports the project.

2. Demonstration of Benefits

Show how the project improves the state of good repair, safety, quality of transit service, or provides transportation options that foster community development and economic opportunity. FTA considers the percentage of walk-on passengers for replacement projects and convenient intermodal infrastructure for expansion projects.

3. Planning and Local/Regional Prioritization

Demonstrate consistency with local and regional plans. Include letters of support from local officials, public agencies, or private sector supporters. Show how the project addresses local planning priorities and performance measures.

4. Local Financial Commitment

Identify the amount and source of local cost share. Provide evidence that local funds are committed, such as board resolutions or budget documents. Identify any other federal funds being used.

5. Project Implementation Strategy

Include a detailed implementation schedule with grant obligation timeline, design status, procurement phases, and environmental review status. FTA rates projects higher if the grant can be obligated within 12 months and if environmental review (NEPA) is complete.

6. Technical, Legal, and Financial Capacity

Describe your organization's ability to carry out the project successfully. Address any outstanding compliance issues from FTA reviews or Single Audit findings.

Additional Considerations for Bonus Points

FTA also awards credit for the following, which should be addressed in the Supplemental Form:

• Opportunity Zones: Projects located in or supporting qualified opportunity zones
• Benefits for Families and Communities: Projects improving access to jobs, healthcare, recreation, and commercial activity for families with young children
• Wayfinding Improvements: Universal wayfinding tools and signage for people with disabilities, including color-coded routes, plain language instructions, and sensory-safe waiting zones
• Safety and Accessibility: Elements that reduce fare evasion, reduce crime, or increase accessibility for people with disabilities

FTA Selection Priorities

Beyond the evaluation criteria, FTA has stated specific priorities for project selection:

• Passenger Ferry: FTA intends to prioritize low-emission and standard propulsion projects over zero-emission projects
• Low-No Ferry: FTA intends to prioritize low-emission projects over zero-emission projects
• Rural Ferry: FTA intends to prioritize capital projects over operating and planning projects, and low-emission/standard propulsion over zero-emission
• Geographic diversity in the size and location of funded systems
• Variety in propulsion types and walk-on vs. vehicle boardings
• Projects that address reducing vagrancy per Executive Order 14321

Prior Award History

Understanding prior awards can help you gauge competitiveness:

• Passenger Ferry (FY 2024): 23 eligible proposals requesting $240.8M; 8 selected totaling $56M (range: $1.1M-$15.6M)
• Low-No Ferry (FY 2024): 14 eligible proposals requesting $181.8M; 6 selected totaling $49M (range: $691K-$20M)
• Rural Ferry (FY 2024): 6 eligible proposals requesting $216M; 4 selected totaling $194M (range: $5M-$106.4M)

Key Dates

• NOFO Published: April 6, 2026
• Application Deadline: May 11, 2026, 11:59 PM Eastern
• Submit Via: Grants.gov "APPLY" function
• Award Announcements: Published on FTA's website

Application Requirements

A complete application consists of two forms:

1. SF-424, Application for Federal Assistance: Available at Grants.gov
2. Supplemental Form for the FY 2026 Ferry Programs: Available at Grants.gov or on the FTA website. This is the primary document FTA uses for evaluation.

Additional requirements include:

• Active SAM.gov registration and valid Unique Entity Identifier (UEI)
• Zero-Emission Fleet Transition Plan (if applying for zero-emission projects)
• All supporting documentation referenced by file name in the Supplemental Form
• Congressional district information for the project location

Tips for a Competitive Application

1. Apply to Multiple Programs When Eligible

If your project qualifies under more than one program, submit it to each. Low- and zero-emission projects for urbanized areas can be submitted to both Passenger Ferry and Low-No Ferry programs. Rural projects meeting eligible service criteria can apply to both Low-No Ferry and Rural Ferry programs.

2. Demonstrate Project Readiness

FTA rates projects higher when the grant can be obligated within 12 months. Having completed environmental review (NEPA), preliminary design, and procurement planning significantly strengthens your application.

3. Provide Strong Evidence of Local Support

Include board resolutions, letters of support from local officials, and budget documents showing committed local match. The Local Financial Commitment criterion carries significant weight.

4. Quantify Benefits and Need

Use concrete data: vessel age and condition reports, ridership numbers, maintenance costs, and state of good repair targets. If you report to the National Transit Database, reference your Transit Asset Management (TAM) Plan.

5. Address Bonus Categories

Don't overlook the additional considerations. Opportunity Zone projects, family accessibility improvements, wayfinding enhancements, and safety/accessibility elements all earn credit and can differentiate your application.

6. Consider Low-Emission Over Zero-Emission

FTA has explicitly stated it will prioritize low-emission and standard propulsion projects over zero-emission across all three programs. If you're considering fleet electrification, a hybrid or low-emission approach may be more competitive than full zero-emission.

Contact Information

• FTA Ferry Programs: FTAFerryPrograms@dot.gov
• Contact: Matt Lange, Office of Program Management, (202) 366-2053
• Grants.gov Help: grants.gov

How Avila Can Help

FTA ferry grant applications require detailed supplemental forms, evidence of project readiness, cost share documentation, and alignment with multiple evaluation criteria. For transit agencies and state DOTs managing complex capital programs, putting together a competitive application under a tight timeline is a significant challenge.

Avila's AI-powered platform helps government agencies streamline the grant application process by:

• Analyzing NOFOs to identify key requirements and evaluation criteria
• Helping draft narratives that align with FTA's scoring priorities
• Tracking deadlines across multiple federal grant programs
• Managing the complete grant lifecycle from discovery to closeout

Ready to explore how Avila can support your ferry grant application? Book a demo to learn more about our platform.

For more information on federal grant applications, see our guides on federal grant writing, SAM.gov registration, and Grants.gov registration. For other transportation and infrastructure funding, check out our guides to the SS4A Grant Program and the FEMA BRIC Grant Program.