Posted on February 11, 2026
Santa Barbara Harbor’s long-standing federal dredging support has been removed from President Trump’s proposed budget for fiscal year 2026, creating a $4 million annual funding gap and intensifying financial strain on the city’s Waterfront Department.
For nearly three decades, the harbor entrance has been dredged twice a year by the U.S. Army Corps of Engineers using federal funds allocated through the Presidential Budget. That funding was included in fiscal year (FY) 2025 but not for fiscal year 2026 and beyond. One final funded dredging cycle is scheduled for late February.
“We are strategically delaying the dredging operation to the end of February to maximize the available funding and allow us to make it through the winter season,” Waterfront Director Mike Wiltshire said.
Dredging keeps the harbor’s narrow entrance channel clear of sand that continuously moves east along the coastline. Without it, sediment accumulates and gradually reduces navigable space.
“As of now, Harbor Patrol is monitoring the channel depth and width daily,” Wiltshire said. “There is sufficient depth to transit the channel, and Harbor Patrol is available to provide escorts to any larger vessels that may need assistance.”
Santa Barbara Waterfront Director Mike Wiltshire | Credit: City of Santa Barbara
If maintenance dredging were delayed or halted, the consequences would extend beyond recreational boaters.
Safety impacts could include “eliminating ocean access” for the U.S. Coast Guard Marine Safety Detachment based in the harbor and for the Coast Guard cutter Blackfin, an 87-foot patrol vessel docked locally, Wiltshire said. It would also affect Santa Barbara Harbor Patrol, which provides emergency response services between Point Conception, the Channel Islands, and Ventura.
It would eliminate what Wiltshire described as “the only ‘safe harbor’ for vessels transiting a roughly 120-mile stretch between Ventura and Morro Bay.”
Emergency dredging remains an option in the event of a closure.
“The Army Corps will respond in the event of any emergency closure, as they have in the past,” Wiltshire said. “Emergency dredging funds utilize a different funding source but still remain the responsibility of the Army Corps.”
Routine dredging, however, is preventative. Emergency dredging is reactive — and typically more limited in scope.
The $4 million dredging gap is only one component of a broader financial challenge facing the Waterfront Department. The department’s insurance deductible for Stearns Wharf has increased from $250,000 to $3 million. Insurance premiums have risen by $1 million. Revenues have been temporarily reduced from two major restaurant tenants. And large capital projects remain pending.
As an enterprise fund, the Waterfront Department receives no support from the city’s general fund nor taxpayer money. “We are required to cover our expenses with revenues generated here within the Waterfront,” Wiltshire said.
The department’s primary revenue sources are slip fees, parking fees, and tenant rents. If federal dredging funds are not restored, “in the short term this could include depleting Waterfront Reserves and/or assessing fee increases to cover the increased expense,” Wiltshire said.
Meanwhile, the city’s general fund faces a projected $13 million shortfall, limiting its ability to provide assistance.
Santa Barbara Harbor is the only port in Santa Barbara County and serves as a hub for the region’s ocean-related economy. According to the 2024 University of California Economic Forecast Project, the county’s blue economy generates $7.7 billion annually and supports roughly 44,000 jobs.
The harbor supports a commercial fishing industry valued between $30 million and $50 million each year, as well as an annual cruise ship program that brings 50,000 to 100,000 passengers and generates an estimated $3 million to $5 million in regional economic activity.
Stopping maintenance dredging could “halt the operations of ocean dependent businesses based in Santa Barbara Harbor,” Wiltshire said.
City officials say they have not received a specific explanation for the removal of funding, but “the decision seems to be more political than practical,” according to Wiltshire.
“The federal government withheld billions in funding for Army Corps projects, mainly in blue states,” he said. “We are not alone. Many of our neighboring ports and harbors had dredge funding reduced or cut as well.”
The funding pause, announced by the Office of Management and Budget in October 2025, affected projects in 12 states, including California, New York, Illinois, Maryland, Oregon, New Mexico, New Hampshire, Massachusetts, New Jersey, Rhode Island, Delaware, and Colorado — states that have largely supported Democratic candidates in recent federal elections.
Wiltshire said the city has “broad support from Congressman Carbajal and senators Schiff and Padilla” and is advocating for reinstatement in the fiscal year 2026 Federal Work Plan.
The Santa Barbara Independent contacted the U.S. Army Corps of Engineers for comment regarding the funding decision. As of publication, no response had been received.
