A proposal to renovate the museum adjacent to the USS Constellation at the Inner Harbor and rebuild two water taxi terminals will receive $2 million in federal transportation money under a grant that was approved by the Baltimore Board of Estimates yesterday.

About $1.8 million of the grant, which will be administered by the Maryland State Highway Administration, is intended for the museum, said its executive director, Chris Rowsom.

Construction of the redesigned building could begin in 2009 and will cost as much as $3 million, he said.

Rowsom said the new building will not be larger than the current museum.