Key Bridge rebuild advances; MDTA warns of toll shortfalls and possible systemwide increase

Maryland Transportation Authority officials told the House Appropriations subcommittee on Feb. 3 that reconstruction of the Francis Scott Key Bridge is proceeding rapidly and that the authority faces near‑term revenue and debt pressures that could trigger a systemwide toll increase in the late fiscal‑year forecast.

MDTA reported that a progressive design‑build contractor was selected months after the bridge collapse, pre‑construction surveys and soil sampling are complete, and demolition and construction are scheduled to begin later in the year. Paul Wiedefeld, Maryland Secretary of Transportation, said the project team unveiled preliminary structural designs and expects the rebuilt bridge to be a long‑term connection for the region; MDTA executives gave an estimated project completion near the end of calendar 2028.

Financial picture and federal/insurance support

The authority has received $350 million in insurance proceeds (Aug. 5, 2024) and has used $25 million for salvage and debris removal, Bruce Gardner, MDTA executive director, said. MDTA also expects $10 million in federal emergency relief quick‑release funds and the balance of an initial $60 million quick‑release allocation in the near term. Until insurance and quick‑release funds are exhausted and federal reimbursement for documented costs is secured, MDTA intends to rely on those proceeds to fund initial rebuild work. Gardner said the state’s claims against the vessel owners and operators remain active; the state is pursuing recovery through litigation.

Tolls, debt and forecasts

Sam Quist of DLS explained MDTA’s fiscal picture: the FY26 operating budget is roughly $595 million and the capital program about $1.06 billion. Toll revenues were $848.5 million in FY24 but are projected to decline by roughly $100 million in FY25 because of the Key Bridge collapse and other factors. MDTA’s six‑year capital program and projected bond issuances push total debt outstanding close to the legislature’s raised cap: Chapter 2 of 2024 increased MDTA’s statutory debt limit from $3 billion to $4 billion; DLS’s forecast shows debt peaking around $3.8 billion in 2029–2030.

MDTA’s forecast indicates that several financial metrics — including unencumbered cash and debt service coverage — decrease in out years and that the authority has modeled a systemwide toll increase during the six‑year forecast to restore coverage. Wiedefeld and Gardner said any toll change would follow statutory process, including public comment periods and hearings and an MDTA board vote; Gardner noted the public process can take up to 10 months.

Collections, outstanding debt and reciprocity

Committee members pressed MDTA about outstanding unpaid tolls. MDTA staff told lawmakers the $175 million figure in the analysis refers to tolls owed by Maryland‑registered vehicles (not including civil‑penalty fees) and that additional collection and enforcement mechanisms produce extra fees. Gardner said MDTA has improved collection systems and is pursuing reciprocity agreements with other states to address out‑of‑state unpaid tolls; he identified Pennsylvania as a near‑term priority for reciprocity discussions and said interoperability and improved plate‑reading technology will help collections.

Ending: MDTA officials said bridge reconstruction and financial recovery are top priorities and that they will provide further details on toll‑setting timing, collection processes and the schedule for federal reimbursements as those items firm up.