Federal Budget Cut Leaves Santa Barbara Harbor $4 Million Short on Dredging

Stopping maintenance dredging could halt operations of ocean-dependent businesses based in Santa Barbara Harbor, as well as impede Coast Guard and Harbor Patrol operations.

Published on Feb. 10, 2026

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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. Dredging keeps the harbor's narrow entrance channel clear of sand, and without it, sediment accumulation could reduce navigable space and impact operations for the U.S. Coast Guard, Harbor Patrol, and ocean-dependent businesses.

Why it matters

Santa Barbara Harbor is the only port in Santa Barbara County and serves as a hub for the region's $7.7 billion annual blue economy, supporting around 44,000 jobs. Stopping maintenance dredging could halt the operations of these ocean-dependent businesses and impede emergency response services provided by the Coast Guard and Harbor Patrol.

The details

For nearly three decades, the harbor entrance has been dredged twice a year by the U.S. Army Corps of Engineers using federal funds. That funding was included in fiscal year (FY) 2025 but not for FY 2026 and beyond. The $4 million dredging gap is only one component of a broader financial challenge facing the Waterfront Department, which also includes increased insurance costs and reduced revenues.

  • The final funded dredging cycle is scheduled for late February 2026.
  • The funding pause was announced by the Office of Management and Budget in October 2025.

The players

Mike Wiltshire

Waterfront Director for the City of Santa Barbara.

Congressman Carbajal

A U.S. Representative who the city has broad support from.

Senators Schiff and Padilla

U.S. Senators who the city is advocating to for reinstatement of the dredging funding.

U.S. Army Corps of Engineers

The federal agency responsible for the dredging operations in Santa Barbara Harbor.

U.S. Coast Guard

The federal agency with a Marine Safety Detachment based in the harbor and a patrol vessel docked locally.

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What they’re saying

“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.”

— Mike Wiltshire, Waterfront Director (independent.com)

“As of now, Harbor Patrol is monitoring the channel depth and width daily. There is sufficient depth to transit the channel, and Harbor Patrol is available to provide escorts to any larger vessels that may need assistance.”

— Mike Wiltshire, Waterfront Director (independent.com)

“The federal government withheld billions in funding for Army Corps projects, mainly in blue states. We are not alone. Many of our neighboring ports and harbors had dredge funding reduced or cut as well.”

— Mike Wiltshire, Waterfront Director (independent.com)

What’s next

The city is advocating for reinstatement of the dredging funding in the fiscal year 2026 Federal Work Plan.

The takeaway

This funding cut highlights the broader financial challenges facing the Santa Barbara Waterfront Department, which must now find ways to cover the $4 million dredging gap without support from the city's general fund. The loss of federal dredging support could have significant impacts on the region's blue economy and emergency response capabilities if not resolved.