Whatcom County, Wash., has finalized a grant agreement with the U.S. Maritime Administration for $25 million toward replacing the aging ferry 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, covers 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.

The county has also received $5.3 million through Washington state’s Move Ahead Washington program, which has supported vessel and terminal design work and environmental permitting. In July, the Whatcom County Council established a county ferry district to provide a dedicated local revenue source for the county’s share of the capital project and ongoing operations.

Public Works expects to advertise the terminal construction package in November 2026 and the vessel construction package in January 2027, with shipbuilding beginning in the first quarter of 2027 and the new ferry entering service by March 2029. Terminal construction is expected to start in June 2027 and take about two years. The Elliott Bay Design Group-designed replacement is intended to improve safety and reliability, reduce maintenance downtime, and allow for a possible future conversion to electric propulsion. The Whatcom Chief has served the route connecting Lummi Island with Gooseberry Point for more than six decades.

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