What's Happening?
The American Association of Port Authorities (AAPA), along with a coalition of donor and energy transfer ports, has sent a letter to the House and Senate Appropriations Committees and the Energy and Water Development Subcommittees. The letter urges Congress to reverse a funding diversion and restore critical support for ports through the FY2026 appropriations process. The AAPA warns that without restoration of Section 102 and 2106 funding from the Harbor Maintenance Trust Fund (HMTF), the U.S. port system will lose over $1 billion in direct investment during the remainder of the Trump administration. This loss could undermine national security, supply chain resilience, and energy exports. The letter emphasizes the importance of ensuring these funds are available for their intended purpose, as outlined in the Water Resources Development Act (WRDA) of 2020.
AD
Why It's Important?
The funding cuts pose a significant threat to U.S. port infrastructure, which is crucial for national security and economic stability. Ports play a vital role in the supply chain, facilitating energy exports and imports. The loss of over $1 billion in investment could lead to reduced capacity and efficiency, affecting industries reliant on port services. The AAPA's call to action highlights the need for consistent and predictable investment in port infrastructure to maintain the U.S.'s competitive edge in global trade. Restoring the funding would ensure that ports can continue to support economic growth and resilience.
What's Next?
The Appropriations Committees are expected to review the letter and consider the AAPA's request to include bill language in the FY2026 Energy & Water Appropriations Act. This language would direct the Army Corps of Engineers to allocate $417.6 million in HMTF funding for donor and energy transfer ports, consistent with Section 102 of WRDA 2020. Additionally, it would provide $62 million from the general fund for eligible projects under Section 2106 of the Water Resources Reform and Development Act of 2014. The outcome of these deliberations will determine the future of U.S. port infrastructure funding.
