This paper investigate cost-recovery alternatives for US federally-operated vessel traffic service (VTS) systems. These include those currently used or have been used by VTS and ‘VTS-like’ systems and other feasible, but not used herefore, alternatives, a federal trust and a federal VTS user-fee structure. Three federal trust funds exist whose waterway-related earmarked revenues could also be earmarked for VTS systems. A federal VTS user-fee structure while raising revenue to finance VTS systems is not expected to be detrimental to the competitiveness of VTS ports nor to the vessel operators that call if their cost-savings exceed fees paid.