Posted on March 10, 2026
The Atlantic Intracoastal Waterway (AIWW) extends over 1,100 miles from Norfolk, Virginia to Miami, Florida. Some lengths consist of natural inlets, saltwater rivers, bays, and sounds while others are man-made canals. Congress authorized the creation of the AIWW in 1919 with construction of the entire waterway completed in 1940. Recent estimates are that unmet maintenance needs of the waterway are approximately $56.5 million with an annual maintenance need of approximately $53 million (see back for details).
• The USACE is authorized to maintain the waterway at a depth of 12 feet for most of its length, but inadequate funding has prevented this level of maintenance. Shoaling has created hazardous conditions for waterway users with several sections having reduced depths ranging from less than five feet at low tide. Shallow depths create a dangerous health and safety issue as smaller boats are forced to use the Atlantic Ocean and encounter rough seas. They often require Coast Guard assistance.
• The AIWW is a U.S. DOT-designated Marine Highway that parallels Interstate 95. In a U.S. DOT report titled “Beyond Traffic 2045,” they estimated that freight movement throughout the nation will increase by 45% by 2040. Increased maintenance of the inland waterway system needs to be funded to support its portion of this increased freight movement.
• Waterway maintenance projects lead directly to more American jobs since all dredging is done by our U.S.-flagged fleet. In addition, shipping products via the waterway is more cost effective than transporting products by other modes. Greater waterway depths increase the opportunities for more waterway shipping and job creation as the nation taps into increased economic development opportunities. Also, some items are so large that they can only be shipped along the AIWW.
• The AIWW has a substantial amount of ongoing commercial activity. Products shipped include fuel oil, gasoline, asphalt, fertilizers, chemicals, wood chips, wood, limestone, sand, gravel, iron, steel, slag, lime, fabricated metal products, soybeans, vegetables, produce, and electrical machinery. We have examples of shipping routes reopening after maintenance dredging occurred in the AIWW.
• Large post-Panamax vessel traffic is increasing and ports are completing deepening projects to accommodate the increased size. It is imperative for the waterway to be maintained to allow for materials to be shipped between ports along the AIWW. Investing in our waterways now will ensure future economic development opportunities for our rapidly growing coastal communities.
• In Florida alone, the intracoastal waterway transports tons of commercial cargo and is utilized by over 216,000 recreational vessels, and estimated to provide $21.6 billion in economic impact, which includes over 236,500 jobs and over $3.9 billion in tax revenue.
• Shipping on the Nation’s Intracoastal Highway leaves a lower carbon footprint than transporting by truck or train. In comparing fuel usage between shipping and trucking, shipping has an almost 400% increase in hauling capability. Also, the standard cargo capacity of a truck peaks at approximately 25 tons while the capacity of a barge hauling cargo can exceed 1,700 tons.
American Cruise Lines will be sailing four, coastal catamaran vessels specifically designed for the AIWW in 2026. They continue to evaluate expansion opportunities as the waterway increases in reliability.
In Fiscal Year 2027, the AIWA requests Congress continue the practice of establishing individual allocations for operations and maintenance of navigation projects. The AIWA requests that Congress allocate $100 million for Additional Dredging Needs for Inland Waterways; $300 million for Small, Remote, or Subsistence Navigation; and $400 million for General Navigation within the Corps’ Operations and Maintenance Budget. In addition, we support all increased project funding via Community Project Funding or Congressionally Directed Spending.
Summary of Financial Needs for the Atlantic Intracoastal Waterway
The anticipated cost to return the project to the authorized dimensions because of backlog maintenance (provided by U.S. Army Corps of Engineers, March 2025).
As of March 2025, the U.S. Army Corps of Engineers estimated that in order achieve the authorized dimension of the waterway there is a backlog maintenance cost of approximately $56,500,000, with the effort being similar throughout each of the Corps’ District boundaries. Significant progress has been made with the funding received in regular appropriations and supplements funding. Maintenance dredging and upland placement repair projects have reduced this backlog by over $69,000,000 from 2016 through 2025.
In addition, if we assume a fully constructed waterway at authorized dimensions, it is estimated that approximately $53,000,000 in funding would be required annually to provide for operation and maintenance activities. In FY26, all appropriations to date total $42,433,000, but final amounts are unknown until the release of final Work Plan funding. The FY27 President’s Budget and FY26 Work Plan have not been released.
