The Pinellas Suncoast Transit Authority is getting $16.5 million in federal money to build a new 249-passenger ferry connecting downtown St. Petersburg to downtown Tampa, U.S. Secretary of Transportation Sean Duffy announced Monday, Aug. 17, at Port Tampa Bay, WFLA reported.

Two other vessels PSTA acquired in summer 2026 are already headed to North Pinellas for work. The Bay Breeze has arrived at Tarpon Marine Service in Tarpon Springs for refurbishment, and a second vessel, the Bay Clipper, will join it at the same facility in the coming weeks.

"It's a huge win for commuters and local tourism alike," Duffy said at the announcement. "They're going to receive $16.5 million to build a new 249 passenger ferry vessel."

The new service will connect what Duffy called "two of Tampa's largest economic hubs," linking the downtowns of St. Petersburg and Tampa.

PSTA CEO Brad Miller called the Bay Breeze's arrival in Pinellas County "a major milestone" that brings the agency closer to launching long-term ferry service across the bay. The Bay Breeze and Bay Clipper are separate from the newly funded 249-passenger vessel, which must be built in a U.S. shipyard under federal law, according to Port Tampa Bay President and CEO Paul Anderson.

The ferry news lands the same week PSTA is asking riders to accept less on the ground. As we reported Aug. 14, the agency is proposing to eliminate six bus routes and services for fiscal year 2027: Routes 16, 58 and 90, the Snapper Safety Harbor-Clearwater on-demand service, the Grouper Airport Shuttle and ADA paratransit service. PSTA is also considering raising onboard credit card fares by 11 cents and bumping Transportation Disadvantaged bus pass copays from $11 to $13.

Route 58, which links Seminole City Center to Bardmoor Hospital and the PSTA Complex, survived a proposed cut once before. In September 2023, the board spared it after public outcry from workers who depend on the line to reach industrial jobs along Bryan Dairy Road.

Pinellas County bus rider Bryan Eubanks told Tampa Bay 28 he would lose his job without Routes 18 and 58.

PSTA's board lowered its millage rate in September 2025 to 0.7300 mills, the lowest in 15 years. Property taxes generate roughly 61% of the agency's operating budget; passenger fares account for less than 10%.

The board will hold two public hearings on the proposed bus cuts and fare increases on Wednesday, Aug. 19, and Wednesday, Aug. 26, before taking a final vote. The new ferry service's launch date has not been announced.