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AIWA February Newsletter- update on Intracoastal Waterway funding for dredging

Posted on February 4, 2026

On January 15, 2026, the President signed into law the mini-bus appropriations package that included Fiscal Year 2026 (FY2026) funding for Energy and Water Development, which included funding for the U.S. Army Corps of Engineers (Corps). As expected, the bill included the following amounts for the Atlantic Intracoastal Waterway and our partners on the New Jersey Intracoastal Waterway.

VA – Albemarle Chesapeake Canal – President’s Budget Request – $3.597M, Final Appropriations Bill Amount – $3.597M
VA – Dismal Swamp Canal – President’s Budget Request – $1.816M, Final Appropriations Bill Amount – $1.816M
NC – President’s Budget Request – $12.490M, Final Appropriations Bill Amount – $16.712M, an increase of $4.222M over the President’s Budget 
SC – President’s Budget Request – $9.213M, Final Appropriations Bill Amount – $9.213M
GA – President’s Budget Request – $6.265M, Final Appropriations Bill Amount – $6.265M
FL – President’s Budget Request – $4.830M, Final Appropriations Bill Amount – $4.830M
Total for the AIWW/IWW – President’s Budget Request – $38.211 Million, Final Appropriations Bill Amount – $42.433 Million
Total for the New Jersey Intracoastal Waterway – President’s Budget Request – $1.715 Million, Final Appropriations Bill Amount – $1.715 Million

A highlight this year is that Congressman Greg Murphy’s Community Project Funding request for an additional $4.222 million for North Carolina was included in their final bill. This funding was an advocacy goal for the Association for FY2026, and we are grateful for Congressman Murphy’s support.

Allocation of Additional Dredging Needs Funding Pots
We also have the opportunity to secure additional funding through the Additional Dredging Needs funding pots included in the appropriations bill listed below:
General Navigation – $509.482 million
Inland Waterways – $47.243 million
Small, Remote or Subsistence Navigation – $300 million

The Corps was directed to identify additional projects in these three categories and report back to Congress in April. With the funding received in the current bill, we have secured nearly $225 million in federal funding for operations and maintenance of Marine Highway 95 in the last four years. Projects have been planned or underway in every state along the waterway since 2017.

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