Interstate Ferry Fairness Act
- Sponsor
- Rep. LaLota, Nick [R-NY-1]
- Committees
- Transportation and Infrastructure Committee (primary)
- Last action
- Apr 7, 2026
Bottom line
This bill broadens federal funding eligibility for ferry infrastructure, potentially increasing private sector involvement in interstate ferry services and expanding transportation options, while also allowing for private profit.
What it actually does
This bill amends Title 23 of the U.S. Code to expand eligibility for the Federal Ferry Boat Program. It allows privately owned or majority-privately owned ferry boats and terminal facilities, specifically those operating between two adjoining states, to receive federal funding for construction or purchase, provided they offer substantial public benefits or meet surface transportation needs. It also establishes a framework for these private entities to charge fares that include a 'reasonable rate of return'.
Proponents argue
Supporters argue this bill will enhance critical transportation links, especially in areas underserved by public ferry options, by leveraging private investment and efficiency. They contend it will improve connectivity between adjoining states, reduce congestion on parallel road networks, and stimulate economic activity by making ferry services more robust and accessible.
Opponents contend
Critics might argue that expanding federal funding to privately owned entities could lead to misuse of public funds, create unfair competition with existing public services, or prioritize private profit over genuine public need. Concerns could also be raised about accountability and oversight of federal investments in private infrastructure and the potential for excessive fares.
The bill is short and relatively straightforward, allowing for a quick understanding of its core purpose and implications.
Section 2(a)(2)(A) and (B) amending 23 U.S.C. 129(c)(3)
Eligibility for Privately Owned Interstate Ferries
This provision makes privately owned or majority-privately owned ferries and ferry terminal facilities eligible for federal funding under the Ferry Boat Program, specifically if they operate between two adjoining states. Eligibility is contingent on the Secretary of Transportation determining that they provide substantial public benefits or meet surface transportation needs. Previously, eligibility was primarily for publicly owned or majority publicly owned entities.
Supporters argue
Supporters argue this expands vital transportation infrastructure by tapping into private sector efficiency and investment, particularly for routes that might not be prioritized by public entities. It addresses gaps in interstate connectivity.
Critics contend
Critics may argue that public funds should primarily support public infrastructure, and this change could divert resources from publicly owned systems or create an unfair advantage for private companies. Concerns about profit motives influencing public service could also be raised.
Tradeoffs
Balances the desire to expand transportation options and leverage private capital against concerns about public accountability and the appropriate use of taxpayer money for private ventures.
Section 2(a)(2)(B) amending 23 U.S.C. 129(c)(3)(B)
Direct Federal Funding for Private Ferry Assets
This amendment explicitly allows federal participation in the construction or purchase of a ferry boat or terminal facility for private ownership, specifically for ferries operating between two adjoining states. This clarifies that federal funds can directly contribute to assets that will be privately owned, rather than just publicly owned or operated, marking a significant shift in federal policy for this program.
Section 2(a)(3)(D) adding new subparagraph (B) to 23 U.S.C. 129(c)(4)
Fare Structure for Privately Owned Interstate Ferries
This new subparagraph allows privately owned or majority privately owned ferries operating between two adjoining states to charge fares that cover operational costs, maintenance, debt service, negotiated management fees, plus a reasonable rate of return as determined by the Secretary. It also specifies that all revenues, except for this reasonable rate of return, must be applied to the actual and necessary costs.
Section 2(b) amending 23 U.S.C. 133(b)(1)(B) and 147(c)
Alignment with Surface Transportation Block Grant and Ferry Construction Programs
These amendments update other sections of Title 23 to align with the new eligibility rules. Specifically, Section 133(b)(1)(B) (Surface Transportation Block Grant Program) is amended to include ferry boats and terminal facilities eligible under the expanded Section 129(c). Section 147(c) (Construction of Ferry Boats and Ferry Terminal Facilities) is amended to strike 'public entities' and insert 'entities,' broadening who can participate in that program.
The amendments made by this section, specifically concerning eligibility for the program under Section 147 of Title 23 (Construction of Ferry Boats and Ferry Terminal Facilities), will take effect one year after the date of enactment for privately owned or majority privately owned ferries or terminal facilities.
Section 2(c)
Why it matters:This is standard legislative practice for implementation delays, often to allow agencies to prepare new regulations or for stakeholders to adjust. It is not necessarily evasive, but rather a practical administrative detail.
Case for: Supporters would argue this delay provides necessary time for the Department of Transportation to develop new regulations, guidance, and administrative processes for evaluating private entities and their 'reasonable rate of return,' ensuring a smooth transition and effective implementation.
Case against: Critics might argue that a one-year delay could postpone much-needed infrastructure improvements or create uncertainty for private entities eager to participate, potentially slowing down the intended benefits of the bill and delaying economic impact.
Estimated impact: Delays the practical application of federal funding for private ferry construction/purchase by one year, impacting project timelines and potentially the immediate economic benefits.