Despite pleas from local officials and the area’s state senator, the requirement to add tolls to the currently free ferry routes will remain for now in the state budget law that passed the General Assembly earlier this month.
House Bill 268, which was approved by a conference committee made up of members of the Senate and House on Monday, makes a number of changes to the $34.4 billion state budget.
The underlying budget law, signed by Gov. Josh Stein on July 7, requires the Ferry Division to begin collecting tolls on all North Carolina ferry routes no later than Jan. 1.
That would add tolls to routes that are currently free, including Hatteras-Ocracoke, Currituck-Knotts Island, Bayview-Aurora and Cherry Branch-Minnesott Beach.
NCDOT currently charges fares on the Cedar Island-Ocracoke, Swan Quarter-Ocracoke and Southport-Fort Fisher routes and the Ocracoke Express passenger ferry.
The budget law says the Board of Transportation, in consultation with the Ferry Division, must establish tolls for all ferry routes. The toll amounts are to be set and adjusted in a way that funds passenger vessel replacement, under a replacement schedule developed by the Ferry Division.
The law also creates a residential commuter pass for local residents and active-duty military personnel. The pass would be valid for one vehicle for one year and would allow travel on any ferry route without additional fees. The Board of Transportation, in consultation with the Ferry Division, would set the pass at $150.
The Ferry Division is tasked with using only available money in its operations budget to install tolling technology and infrastructure across the ferry system.
Last week, the Ocracoke Access Alliance asked lawmakers to delay the tolling requirement until Jan. 1, 2028, arguing the additional year was needed for public process, infrastructure, rate-setting and a more orderly rollout.
Justin LeBlanc, Alliance executive director, said the request was not to reconsider the policy, but to make sure it is implemented in a way that is operationally sound, transparent and fair.
The toll requirement has drawn particular concern on Ocracoke and Knotts Island where ferries are not simply tourist transportation but part of daily travel for residents, workers, school trips, medical appointments, supplies and emergency access.
The Hatteras-Ocracoke vehicle ferry has never charged a toll and is one of the system’s busiest routes. Unlike the longer Ocracoke-mainland routes, it operates on a first-come, first-served basis rather than reservations.
Adding tolls to the Hatteras Inlet route could require new collection technology, such as an NC Quick Pass-style system, and traffic management changes, issues that local officials and ferry advocates have said cannot be worked out responsibly before the January deadline.
The debate also comes as State Auditor Dave Boliek is preparing a review of the Ferry Division ahead of the 2027 legislative session.
Advocates have argued that lawmakers should wait for that review, and the results of a recently launched economic impact survey of ferry riders that is open through the end of the year, before making long-term decisions on tolls, service levels, vessel replacement and system funding.
Sen. Bobby Hanig, R-Currituck, said he planned to pursue an amendment to strike the toll requirement entirely or delay it for one year through the technical corrections bill, but the version that emerged from the conference committee did not include that change.
“I had five amendments ready to go, but none were even considered,” Hanig said in a phone call Monday night.
He also decried both the source and methods used to ram through the tolling mandate, which had vocal backing from Sens. Vickie Sawyer (R-Iredell) and Mike Lazzara (R-Onslow) when it was first introduced in 2025.
The House originally turned back tolling provisions in an earlier version of the budget, both chambers agreed to include the fares in the final budget bill that was approved on July 2.
While Gov. Josh Stein (D) signed the budget into law, he singled out the ferry toll requirement as one of its most significant shortcomings.
“This budget has real flaws, including a requirement for the North Carolina Department of Transportation to establish tolls on all ferry routes by Jan. 1, 2027,” Stein said in a statement after signing the bill. “North Carolina’s ferries for many are not a luxury; they’re an essential part of our state’s transportation system that residents rely on for daily life. In many cases, ferries are the only practical way for families to access jobs, schools and health care.”
The Senate voted on the technical corrections while the House will take up the measure next week.
It appears it For now, the Jan. 1 tolling deadline will remain in state law.
Following next week, the legislature is not expected to return to Raleigh until after the November elections.
Hanig agreed that if the Ferry Division runs into issues meeting the deadline, it could help force through at least a delay of the tolling requirement during the lame duck session.
“I’m not giving up,” Hanig said.
