LUMMI ISLAND, WA (MyBellinghamNow.com) – A long-awaited replacement for the Lummi Island ferry is moving ahead.

Whatcom County has finalized a $25 million federal grant agreement with the U.S. Department of Transportation, securing funding to replace the 64-year-old Whatcom Chief and upgrade ferry terminals.

The grant covers about half the project’s cost and allows the county to begin charging eligible expenses for federal reimbursement.

Terminal construction could start in 2027, with shipbuilding beginning that same year. The new ferry is expected to enter service in 2029.

The project’s local funding plan also took shape this year. Whatcom County voters approved creation of a countywide ferry district in May, and in July, the county council approved a $5.7 million initial budget.

The district will collect a property tax levy of 8.7 cents per $1,000 of assessed value, or about $52 a year for the owner of a $600,000 home.

County leaders say the replacement vessel will improve safety and reliability, reduce maintenance downtime, and be designed for a future conversion to electric power.

“Finalizing this agreement is a major milestone for a project that has taken years of careful planning, design and coordination. 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,” Public Works Director Elizabeth Kosa said in a release Thursday, Sept. 17.

County Executive Satpal Sidhu thanked U.S. Rep. Rick Larsen as well as Senators Patty Murray and Maria Cantwell for their support for the 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 in the release.