In 1808, the first federal government report on existing, possible, and likely avenues of transportation improvement was presented; it included much of the distance where the ICW now traverses the Atlantic coast.

At the request of the Senate, Treasury Secretary Albert Gallatin presented an overall plan for future transportation developments of national importance and scope.

From the last-mentioned place, the inland navigation, through Stumpy and Toomer's sounds, is continued until a diminished draught of water, and by cutting two low and narrow necks, not exceeding three miles together, to Cape Fear River, and thence by an open but short and direct run along the coast is reached that chain of islands between which and the main the inland navigation is continued, to St. Marys along the coast of South Carolina and Georgia.

After the Civil War, government funding shifted from waterways to railroads; still, coastal improvements authorized for development included the Houston Ship Channel and the Delaware River in 1872.

[5] The following year, the Senate's Select Committee on Transportation Routes to the Seaboard looked at the need for more haulage capacity to move freight to the coasts.

But their "Report of Windom Select Committee" their plans and recommendations "received less attention than was anticipated, of course by reason of the rapid growth of interest in railways".

[3] In the River and Harbors Appropriations Acts of 1882 and 1884, Congress signaled its intent to improve waterways to benefit the nation by promoting competition among transportation modes.

[6] In 1887, the Interstate Commerce Act established federal regulation of railroads; Congress continued to promote freedom from tolls or special taxes on waterways.

[5] The River and Harbor Act of 1927 authorized the portion of the Atlantic Intracoastal Waterway, using the route planned out by the Jacksonville District of the Corps of Engineers.

[7] During World War II, the need for efficient transportation of bulk materials within the continental United States was well demonstrated after German submarines sank numerous merchant ships off the East Coast.

[citation needed] Today, federal law provides for the waterway to be maintained at a minimum depth of 12 feet (3.7 m) for most of its length, but inadequate funding has prevented that.

[citation needed] Consequently, for larger ships, shoaling or shallow waters are encountered along several sections of the waterway, with these having 7-foot (2.1 m) or 9-foot (2.7 m) minimum depths from earlier improvements.