The state appears to be in prime position to capture well more than $1 billion in federal funding for its ferries that many Alaskans hope is the catalyst for long-sought change in the Alaska Marine Highway System.

The $1 trillion Infrastructure Investment and Jobs Act signed in November by President Joe Biden establishes new national programs and boosts existing funding to collectively offer nearly $1.6 billion in ferry-specific funding, according to information from Alaska Sen. Lisa Murkowski, who was among a bipartisan group of 10 senators who negotiated the framework of the bill with the...