Ferry Service for Rural Communities

Ferry Service for Rural Communities Program
CFDA 20.539 Active Grant
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Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$91.9M FY2026
$91.9M
FY26*
* estimated

Funded Projects

Examples of what this program has supported.

FY2025 To construct a new ferry to replace the 35-year old Margaret Chase Smith, which has exceeded its useful life. The new ferry will provide a vital connection to mainland Maine for the roughly 600 residents of the island of Islesboro, a rural community located in upper Penobscot Bay, 3 miles off the coast. Design will begin in fiscal year 2025 for a double-ended replacement ferry, with 3 vehicle lanes and the capacity to carry approximately 40 vehicles and 225 passengers.

MaineDOT plans to construct a double-ended hybrid-electric vessel, with optional all-electric operations. Primarily serves the island of Islesboro, Maine, in order to reduce CO2 emissions, improve air quality, maintain a state of good repair, and enhance capacity and service reliability for the Maine State Ferry Service and the 6 unbridged islands it serves.

Program Objective

The Passenger Ferry Grant Program for Rural Communities provides funding for passenger ferries through a competitive process to improve access and mobility in rural or geographically isolated communities that rely on ferry service due to limited road or transit infrastructure. The goals of the program is to improve reliable and safe ferry service in rural areas, fund vessel purchases, terminal construction, and other capital improvements and support tribal governments, local transit agencies, and state/local entities serving rural ferry routes. This Assistance Listing 20.539 created in August 2025 was included in the previous ALN 20.532, please refer to former ALN 20.532 for FY24 and FY25 financial obligations. The new Assistance Listing 20.539will be utilized by DOT at the start of FY 2026.

Eligibility

Eligible Applicants

  • U.S. State Government
  • State

Eligible Recipients are States

Beneficiaries

  • U.S. State Government
  • State

This program benefits states and its rural subrecipients with ferry service that meets the distance and operating schedule requirements described under Assistance Listing Description

How to Apply

Award Procedure

After the technical evaluation, projects recommended for funding are presented to senior management for review. The FTA Administrator will determine the final selection of projects for program funding. Final project selections are posting on the FTA website along with any implementation guidance.

Decision Timeline

  • Approval: From 15 to 30 days
Program details & compliance

Description

The Ferry Service for Rural Communities Program funds capital, planning, and operating assistance for ferry service that operated a regular schedule at any time during the five-year period ending March 1, 2020 and served not less than two rural areas located more than 50 sailing miles apart. Funding is sometimes available for ferry service that serves at least two rural areas with a single segment over 15 or 20 miles between two rural areas that is not otherwise eligible for funding under the Passenger Ferry Program. States must apply on behalf of eligible rural subrecipients.

Mission Categories

Primary: Urban Mass Transit

Other categories:
Maritime

Use of Funds

Allowed Uses

Eligible Activities:
Ferry vessel acquisition or rehab (new or used)
Construction or renovation of terminals
Dock and mooring improvements
Equipment and infrastructure necessary to maintain ferry service in rural areas

Restrictions

Eligible activities include capital, planning, and operating assistance for a ferry service that operated a regular schedule at any time during the five-year period ending March 1, 2020 and served not less than two rural areas located more than 50 sailing miles apart. Funding is also available for ferry service that serves at least two rural areas with a single segment over 20 miles between two rural areas that is not otherwise eligible for funding under the Passenger Ferry Program.

Required Documentation

A complete proposal submission consists of two forms: SF-424 Application for Federal Assistance and the supplemental form for the competitive program. • Applications must be submitted electronically through Grants.Gov. • Application may attach additional supporting information to the SF-424 submission. • Project proposal must be submitted electronically through Grants.Gov by the due date. • Recipients selected for funding submits grant application into TrAMS to obligate funds.

Matching Requirements

Statutory formula is not applicable to this assistance listing.
Matching Requirements: Percent: The Passenger Ferry Program for Rural Communities is 80 percent of the net project cost. See NOFO for exceptions. The maximum Federal share for operating projects selected under the Ferry Services for Rural Communities program is described in the NOFO.

Reporting & Compliance

Records Retention
3 years

Applicable 2 CFR 200 Subparts

  • Subpart B — General Provisions
  • Subpart C — Pre-Federal Award Requirements
  • Subpart D — Post-Federal Award Requirements
  • Subpart E — Cost Principles
  • Subpart F — Audit Requirements

Contacts

FTA Program Grants
2023662053
Federal Transit Administration (FTA) Office of Program Management (TPM) 1200 New Jersey Ave, SE, Washington, DC 20590
Data from SAM.gov Federal Assistance Listings. Source published: 2026-01-22. Spec v2.0. Last synced: 2026-05-29 05:41:53.