Whatcom County, Wash., has finalized a grant agreement with the U.S. Maritime Administration for $25 million toward replacing the aging Whatcom Chief and modernizing the Lummi Island ferry system.
The funding, awarded through the U.S. Department of Transportation’s RAISE grant program in August 2022, will cover half the project’s estimated cost. Marad approved a revised project scope in August 2025 after the county adjusted its plans to align with available funding.
“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,” Whatcom County Public Works Director Elizabeth Kosa said in a statement.
The county has also received $5.3 million through Washington state’s Move Ahead Washington program. That funding has supported vessel and terminal design work and environmental permitting under the National Environmental Policy Act.
The Whatcom County Council established the Whatcom County Ferry District in July to provide a dedicated local revenue source for the county’s share of the capital project and ongoing ferry operations.
Public Works expects to advertise the terminal construction package for bids in November 2026, followed by the vessel construction package in January 2027. Shipbuilding is scheduled to begin during the first quarter of 2027, with the new ferry expected to enter service by March 2029.
Terminal construction is expected to begin in June 2027 and take approximately two years.
The replacement ferry is being designed to improve safety and reliability, reduce maintenance downtime and environmental impacts, and meet service requirements adopted by the County Council in 2017. The design will also allow for a possible future conversion to electric propulsion.
The Whatcom Chief, which has served the Lummi Island route for more than six decades, is approaching the end of its service life. The ferry connects Lummi Island with Gooseberry Point on the Whatcom County mainland.
“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,” County Executive Satpal Sidhu said.
