Whatcom County has finalized a $25 million federal grant agreement that officials say moves the long-planned replacement of the Lummi Island ferry Whatcom Chief
Whatcom County has finalized a $25 million federal grant agreement that officials say moves the long-planned replacement of the Lummi Island ferry Whatcom Chief closer to construction.
The county announced the agreement with the U.S. Department of Transportation’s Maritime Administration for the Lummi Island Ferry Replacement and System Modernization Project.
The funding was originally awarded through USDOT’s RAISE grant program in August 2022. County officials said design and planning work has continued since then, including revising the project scope to better align with available resources.
USDOT approved the revised project scope in August 2025.
“Finalizing this agreement is a major milestone for a project that has taken years of careful planning, design, and coordination,” Public Works Director Elizabeth Kosa said. “With the federal funding now obligated, we can move into the next phase of work and toward rebuilding aging terminals and construction of a replacement vessel for the Whatcom Chief.”
The Whatcom Chief is 64 years old, according to the county.
County officials said the $25 million federal grant covers about half the project’s funding.
The county has also received $5.3 million in Move Ahead Washington funding from the state, which has supported vessel and terminal design and environmental permitting compliance with the National Environmental Policy Act.
In July, the Whatcom County Council established the Whatcom County Ferry District, which the county said will provide a dedicated local revenue source to help fund the county’s share of the capital project and sustain annual ferry operations.
With the federal grant agreement in place, officials said the county can begin incurring project costs eligible for federal reimbursement.
Public Works expects to advertise the terminal construction package for bids in November 2026 and the new ferry construction package in January 2027.
Shipbuilding is expected to begin in the first quarter of 2027, with the new vessel anticipated to be fully operational by March 2029. Terminal construction is expected to begin in June 2027 and take about two years.
County officials said the replacement vessel is designed to improve safety and operations, reduce maintenance downtime and environmental impacts, improve the passenger experience, and meet level-of-service requirements adopted by the Whatcom County Council in 2017. The design also provides flexibility for future electric conversion.
“When our state, federal, and local partners work together, great things happen,” County Executive Satpal Sidhu said. “Thank you especially to Congressman Rick Larsen and Senators Patty Murray and Maria Cantwell for their support for this project. This new ferry is a critical piece of our marine highway infrastructure, and we look forward to it serving our community for generations to come,” Sidhu said.
U.S. Rep. Rick Larsen, the top Democrat on the House Transportation and Infrastructure Committee, called the agreement a key step forward.
“This critical agreement paves the way for cleaner, greener, and more reliable transportation to and from Lummi Island, benefiting all of Whatcom County,” Larsen said. “I’m glad to have supported this project for years and will continue fighting for federal dollars for local ferries in Northwest Washington.”
