Directs Ferry Division of the Department of Transportation (FD) to establish and operate hovercraft pilot program to assess feasibility of replacing ferries between Hatteras-Ocracoke with hovercraft or air cushion vehicle (ACV) ferries. Specifies the program’s purpose to reduce travel times and dredging expenses, potentially retire or repurpose existing fleet, and test new fare model.

Directs FD to issue Request for Proposal to lease or buy suitable hovercrafts or ACVs. Provides that the program will operate for at least two years after launch. Directs FD to implement tiered fare structure that is free to island residents. Permits use of existing ferry fleet during the program for commercial vehicles only.

Directs FD to conduct a feasibility study and to submit an interim report by March 1, 2027 to the Joint Legislative Transportation Oversight Committee and Fiscal Research Division with a final report by December 1, 2027.

Appropriates $25 million in nonrecurring funds for 2026-27 from the General Fund to FD to implement act requirements.

Effective July 1, 2026.