MDTA outlines Key Bridge rebuild progress as revenue shortfalls push possible toll increases and collection changes

The Maryland Transportation Authority (MDTA) told the Transportation and the Environment Subcommittee on Feb. 5 that reconstruction of the Francis Scott Key Bridge is progressing quickly but that the collapse and subsequent revenue impacts have pushed MDTA’s financial forecasts toward a systemwide toll increase during the six‑year outlook unless other revenue or reimbursement timings change.

MDTA and Department of Transportation Secretary Paul Wiedefeld described recent design and preconstruction milestones for the bridge rebuild and outlined insurance receipts, expected federal emergency‑relief reimbursements and outstanding litigation as the principal funding sources for the project.

“Demolition and construction are set to begin later this year,” Secretary Paul Wiedefeld said, noting the contractor selection, geotechnical surveys and unfolding preconstruction work. MDTA executive director Bruce Gardner said the preliminary structural design was unveiled and more detailed design and scheduling work will follow before substantial on‑site construction.

Funding, insurance and federal timing MDTA reported it received $350,000,000 in insurance proceeds from its property and business‑interruption carrier on Aug. 5, 2024; the agency said $25,000,000 of those funds have been used for salvage and debris removal. MDTA expects to receive an initial tranche of federal emergency relief quick‑release funds (an anticipated $10,000,000 in the week following testimony) and a remaining initial quick‑release allocation of $60,000,000 soon thereafter. MDTA said it would use insurance proceeds first and then seek federal reimbursement for eligible costs on a documentation‑and‑reimbursement basis, with an assumed federal turnaround of roughly 12 months on approved claims.

MDTA described other potential recoveries including litigation against the vehicle owners and operators that struck the bridge; the state and MDTA have active claims pending, and MDTA staff said they are coordinating with the Attorney General’s office.

Toll revenue outlook and possible rate action MDTA’s DLS analyst and agency staff said fiscal 2025 toll revenues were projected to decline by about $100,000,000 compared with the prior year, in part because of the Key Bridge collapse and traffic diversions. MDTA presented a financial forecast that showed its debt‑service coverage and unencumbered cash metrics declining in out‑years; the Maryland General Assembly last year raised MDTA’s debt limit from $3.0 billion to $4.0 billion (Chapter 2 of 2024) to allow borrowing for the rebuild.

Bruce Gardner said MDTA projects a need for a systemwide toll increase during the six‑year forecast period to meet financial standards and that the projected year for that action has moved earlier in the forecast. Gardner described the statutory public process required for toll setting and said the full toll‑increase process can take up to about 10 months, including two public comment periods and facility hearings.

Collections, outstanding toll debt and reciprocity efforts Committee members pressed MDTA on outstanding unpaid tolls and the pace of collection. MDTA said that a substantial portion of unpaid tolls are older and that the agency has already improved collection workflows during its transition to all‑electronic tolling. MDTA reported a figure in its analysis showing roughly $175,000,000 in outstanding tolls owed by Maryland‑registered drivers (tolls only; fees and penalties were not included in that figure), and noted that referral thresholds and timing vary in the collection pipeline. MDTA said the agency is deploying enhanced collection practices, considering private debt‑collection contracts and pursuing reciprocity agreements with other states to reduce out‑of‑state nonpayment.

“We are now interoperable with Florida,” MDTA said in response to committee questions, and officials described active discussions with Pennsylvania on reciprocity and collection momentum with neighboring agencies.

Key operational milestones and schedule MDTA said the design‑build contract for the Key Bridge rebuild was awarded rapidly after the collapse, the general‑engineering consultant contract has been awarded and construction management and inspection contracts were forthcoming. MDTA expects demolition and major construction to begin later in the calendar year and—based on current schedule development—projects completion in the latter part of calendar year 2028.

Follow‑ups requested DLS asked MDTA to provide detail on the logistics and phasing of expected federal reimbursements and to explain the timing assumptions used in the financial forecast. Committee members requested more detail on outstanding toll debt, the breakdown between tolls and fees, referral thresholds and the status of reciprocity plans with neighboring states.