Harbor officials warn loss of routine federal dredging funding could cost millions, plan lobbying push

Harbor and waterfront staff told the Harbor Commission on Jan. 22 that Santa Barbara faces an unusual and immediate threat to navigation funding after the Army Corps removed the harbor’s conventional dredging allocation from the FY26 federal budget.

Facilities staff explained the Army Corps historically dredged the federal channel annually to maintain safe navigation. With federal funding removed, staff estimated an annual dredging need of about $4 million that is no longer guaranteed; combined with a Stearns Wharf insurance deductible (approximately $3 million) and rising insurance costs the department described a $7 million to $10 million headwind in recent years.

Director Mike Wilshire and facilities staff outlined contingency options: seek emergency Corps funding in the event of harbor closure; lobby members of Congress and work with the California Marine and Navigation Conference and neighboring ports to reallocate district funds; and consider locally funded short-term measures (assessments, grants or shared regional arrangements). Wilshire said harbor staff would travel to Washington, D.C., in February to press senators and representatives for support.

Facilities staff added that the Army Corps remains the manager of the federal channel and that some limited dredging cycles or district reallocations may be possible, but they cautioned the process is iterative and uncertain and that each year’s funding outlook may differ. The commission asked whether the presence of Coast Guard cutter assets (which historically supported some federal presence) could affect funding; staff said no relocation of the cutter had been signaled and emphasized the geographic importance of Santa Barbara.

Staff said they plan to pursue all available federal, state and regional avenues and to keep the commission updated while preparing contingency budgets and possible revenue or assessment approaches should federal funding remain unavailable.