Ports Urge Congress to Reverse Infrastructure Funding Cuts Affecting U.S. Port System

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 these committees 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 these funds being used for their intended purpose, as outlined in the Water Resources Development Act (WRDA) of 2020, which aimed to ensure fair allocation of Harbor Maintenance Tax revenues.

Why It's Important?

The potential loss of over $1 billion in funding for U.S. ports could have significant implications for national security and the economy. Ports play a crucial role in the supply chain and energy exports, and reduced investment could weaken these sectors. The WRDA 2020 was a historic compromise that resolved long-standing debates over the allocation of the Harbor Maintenance Trust Fund, ensuring that donor and energy transfer ports received fair funding. The elimination of this funding in the FY2025 Army Corps Work Plan and its exclusion from the FY2026 budget request threatens to reverse these gains, impacting economic development and critical infrastructure projects.

What's Next?

The letter calls on Appropriations Committee leadership to include specific 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 requests $62 million from the general fund for eligible projects under Section 2106 of the Water Resources Reform and Development Act of 2014. The letter seeks to reaffirm Congressional intent to implement WRDA 2020 as written, ensuring consistent investment in U.S. port infrastructure.