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On July 7, 1838, Congress allocated $20,000 for a replacement tower.
Contractors from Massachusetts were selected to erect this second tower, and to oversee the work, the Treasury Department appointed Isaiah W.P. Lewis, nephew of Winslow Lewis. I.W.P. harassed the contractors and forced modifications to the foundation, which resulted in the tower becoming unstable after reaching a height of just twenty feet. I.W.P. was promptly removed from the site, and the contractors began anew on the tower, following a design by Winslow Lewis.
Not long after the tower was completed, one of its sides settled into the spongy land, leaving the tower five feet out of plumb. By 1850, the leaning tower was standing in a foot of water, and the Lighthouse Board was motivated to start planning for yet another tower at Southwest Pass, which it estimated would cost $115,000.