Okaloosa County has approved another funding increase for the effort to sink the SS United States as an artificial reef off Destin‑Fort Walton Beach. Commissioners backed an amendment to the county’s contract with Coleen Marine Inc., the company handling remediation, preparation, transport, and deployment of the ship.

On December 9, 2025, the board voted to add $2.95 million to the agreement, lifting the total contract amount to about $10.18 million, according to Tourist Development Department agenda documents.

County staff said the extra money is needed to cover higher insurance costs, added tug and safety requirements from the U.S. Coast Guard, dockage in Mobile, and weather‑related delays. They emphasized there is no precedent for towing and sinking a 990‑foot historic vessel and that Coleen Marine has remained within roughly 10% of its original task‑based budget.

Tourism officials stressed that property taxes will not be used for the SS United States project. Funding comes from Okaloosa’s tourism bed tax and partner contributions, which state law does not allow for road repairs or other general infrastructure.

Partnership agreements with Visit Pensacola and Coastal Conservation Association Florida are expected to provide $2 million, including $1.5 million from Visit Pensacola and $500,000 from CCA Florida. The Visit Pensacola deal dedicates $1 million to deployment costs and $500,000 over five years for joint marketing of the reef as a diving destination.

The SS United States, launched in 1951 and retired in 1969, still holds the transatlantic speed record for an ocean liner. After decades tied up in Philadelphia, the ship was towed to Mobile in early 2025 for cleanup. Okaloosa County purchased the vessel in 2024 from the SS United States Conservancy for an artificial reef project and a related land‑based museum.

In Mobile, crews have removed fuel, wiring, non‑metal materials, and nearly all PCB‑containing components, county coastal resources staff told commissioners. Exfoliating paint is being stripped, and federal agencies, including the Environmental Protection Agency, are overseeing remediation. County documents state EPA officials are satisfied with work completed so far.

Agenda records list the project’s financial breakdown as $7.228 million for the original contract, $2.766 million for known amendments, and $183,288 for contingency, for a not‑to‑exceed total of $10.178 million. Staff said less than $500,000 of the latest overruns are tied directly to contractor‑controlled issues, with most driven by federal mandates and market‑driven insurance and towing costs.

The ship is scheduled to be deployed at a permitted site about 20–22 nautical miles south of Destin‑Fort Walton Beach, roughly 32 nautical miles southeast of Pensacola Pass and roughly 45 miles southeast of Perdido Pass in Orange Beach. The proposed depth is about 180 feet to the bottom and about 55 feet to the upper deck, according to county FAQs.

Once sunk, the SS United States will become the world’s largest artificial reef. County officials say the structure will provide large‑scale habitat for reef fish and pelagic species and support charter fishing and dive operators in Destin‑Fort Walton Beach. They also expect long‑term monitoring by research groups including Woods Hole Oceanographic Institution and Dauphin Island Sea Lab.

The project has drawn national attention as well as local criticism. Some residents question spending more than $10 million in tourism funds while roads and other needs remain. Others argue the liner should be preserved rather than sunk or raise concerns about old coatings such as zinc chromate primer. Commenters and speakers at public meetings have warned about potential contamination if all hazardous materials are not removed.

County leaders counter that earlier efforts to restore the ship failed and that the alternative now would likely be scrapping. Staff and commissioners say deploying it as a reef preserves the vessel’s story in a different form and supports the region’s tourism‑based economy.

A specific deployment date has not been set. Officials have discussed a target date in February, with the schedule dependent on inspection results, weather, and coordination with the Coast Guard and other agencies. 

When the work in Mobile is finished and conditions allow, the SS United States will be towed to the Gulf site, flooded in a controlled way, and left to settle as a permanent offshore reef. People in Fort Morgan will be able to see the ship being towed from Mobile Bay into the Gulf. People in Gulf Shores and Orange Beach may be able to see the ship as it moves east.