Increased Federal Funding for Harbor Maintenance
LOS ANGELES, May 14, 2024 – The Port of Los Angeles is set to receive an unprecedented $58 million in federal funds this year from the U.S. Army Corps of Engineers for the maintenance of harbor channels and the repair of wharves. This substantial increase in funding is a milestone in the government’s efforts to fully implement the long-awaited reforms to the Harbor Maintenance Trust Fund (HMTF).
Senator Alex Padilla Supports the Funding Boost
California Senator Alex Padilla emphasized the importance of this funding, “The ports of San Pedro Bay handle 40 percent of the nation’s container imports, fueling our economic engine. I’m pleased that the Army Corps is addressing these essential upgrades and repairs at the Port of Los Angeles, which are vital for strengthening global supply chains.”
Gratitude from Los Angeles Harbor Commission
Los Angeles Harbor Commission President Lucille Roybal-Allard expressed her appreciation for the support from the maritime community and Congress, specifically pointing out Rep. Grace Napolitano’s crucial role. “Rep. Napolitano has been instrumental in advocating for fair distribution of these funds, which are essential for the safety and efficiency of all U.S. ports,” she stated.
Decade-Long Effort by Rep. Napolitano
Rep. Napolitano reflected on her long-term efforts to support donor ports like Los Angeles and Long Beach. “This victory is the result of a collaborative effort since my 2011 amendment in the Transportation Committee, involving other ports, multiple presidential administrations, and the Army Corps, culminating in the inclusion of the donor port amendment in the 2020 Water Resources Development Act,” she explained.
Economic Impact of Equitable Funding
Rep. Nanette Barragán, whose district includes the port, highlighted the economic significance of the funding. “This corrects the long-standing funding disparity that saw West Coast ports receive significantly less than their East Coast and Gulf counterparts. It’s a major step towards addressing essential infrastructure needs at the Port of Los Angeles,” she remarked.
Immediate Use of Funds
Gene Seroka, Executive Director of the Port of Los Angeles, confirmed the positive impact of the federal funds. “We are eager to advance harbor infrastructure projects that will enhance the port’s global standing,” he noted, emphasizing the immediate benefits of the funding.
Advocacy Leads to Legislative Change
For over a decade, the maritime industry, in collaboration with legislators, has worked to address the mismatch between HMTF revenue and expenditures. This included advocating for expanded use of the funds, such as for seismic upgrades at donor ports. These efforts led to significant legislative changes with the passage of the Water Resources Development Act and the CARES Act in 2020.
Comprehensive Maintenance and Repair Needs
The Port of Los Angeles estimates its total maintenance and repair needs at $6.7 billion, covering a variety of projects from dredging to slip and channel improvements.
Background of the Harbor Maintenance Trust Fund
The HMTF, managed by the U.S. Army Corps of Engineers since 1986, is funded by a 0.125% tax on imported cargo. Initially restricted to dredging, it has accumulated a significant surplus over time due to revenues exceeding expenditures, especially from deep-water ports like Los Angeles and Long Beach, which contributed significantly but benefited minimally due to their natural depth.
Significant Increase in 2024 Funding
This substantial increase in funding for the fiscal year 2024 marks a significant shift from the $6 million received in 2023, ensuring a more balanced and effective allocation of resources across major U.S. ports, including Long Beach and New York-New Jersey.