Letter to Nancy Pelosi, Speaker of the House, Kevin McCarthy, House Minority Leader, Mitch McConnell, Senate Majority Leader, and Chuck Schumer, Senate Minority Leader - Massachusetts Lawmakers Urge House and Senate Leadership to Provide Financial Support to Massachusetts' Steamship Authority

Letter

Dear Speaker Pelosi and Leaders McConnell, McCarthy, and Schumer:

We write to you in support of our state and local government-operated passenger and
cargo ferry service, the Steamship Authority (SSA), which has experienced unparalleled
economic challenges due to the coronavirus disease 2019 (COVID-19) pandemic. This
unprecedented time means extensive measures have been taken to prioritize public health, which
have led to a significant drop in ferry passenger activity. As a result, ferry services like the SSA
need critical financial support to weather these economic challenges, and we urge you to provide
additional support for the industry in ongoing negotiations of economic relief legislation.
Specifically, we request the inclusion of at least $3 billion for emergency ferry service relief, to
be distributed nationally through the existing Construction of Ferry Boats and Ferry Terminal
Facilities Formula Program.
In Massachusetts, SSA provides necessary transportation for those traveling on and off
the islands of Martha's Vineyard and Nantucket to the mainland, including full-time residents
transporting essential goods and services. For many, the SSA provides the only affordable
transportation option in the region. However, the stay-at-home advisory issued by Governor
Baker on March 23, which was recently extended to May 18,
has had a significant impact on SSA ferry services. Furthermore, the Governor declared a state of emergency on March 10, and his request for a federal major disaster declaration was granted later that month.
Due to the dramatic decrease in ridership as a result of the COVID-19 pandemic, the SSA
is struggling to continue their operations and the SSA has stated that they will not be able to
provide needed services to the islands of Martha's Vineyard and Nantucket after this month
without financial relief.
Between March 17 and April 14, the SSA has lost an estimated $2.99
million in revenue.6 Additionally, in a letter to Governor Baker, Robert Davis, the general
manager of SSA, reported losses of about $1 million a week because of the decreased ridership
related to COVID-19.
The SSA is obligated to service the Cape and Islands year round and relies on fare
revenue, especially during the busy summer season.8 The pandemic, however, hit right around
the time SSA begins to see an influx of seasonal passengers. The SSA stated that their ridership
is down to 15 percent of the volume compared to previous years during the same time period.9
Thus, without its main source of revenue, SSA was forced to drastically reduce the service
schedule and furlough over 100 employees in an effort to extend operations until May 2020.10
The Cape Cod Regional Transit Authority recently allocated $9.8 million to SSA from
public transit funding provided by the Coronavirus Aid, Relief, and Economic Security (CARES)
Act.11 This will help reduce the immediate economic hardship and assist the SSA, but additional
support is necessary to ensure long term operations are able to continue. We understand that
ferry services across the country are likely facing a similarly untenable situation.
As a result, we request that Congress allocate at least $3 billion in emergency relief
funding targeted specifically at ferry services, to be distributed through the existing Construction
of Ferry Boats and Ferry Terminal Facilities Formula Program. This program has proven to be an effective means of distributing federal funding to ferry services according to the number of
passengers and vehicles transported, as well as the number of nautical miles covered. Utilizing
this formula, while expanding eligible expenses to include general operating costs and
emergency measures related to the coronavirus, would ensure that ferry services across the
country can still set sail after this pandemic subsides.
We urge you to support the passenger and cargo ferry service industry in Massachusetts
and around the country.

Thank you for your consideration of this important matter.

Sincerely,

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