Maryland Port Administration reports recovery, federal grants and multi‑year capital needs
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Summary
MPA officials told the committee cargo and cruise activity rebounded after the Francis Scott Key Bridge collapse, outlined major capital projects (Howard Street tunnel, Mid Chesapeake Bay island restoration) and said large federal grant awards are being drawn down as project spending and procurement progress.
Maryland Port Administration officials told the House Appropriations subcommittee the Port of Baltimore is rebounding and continuing major capital projects but that federal awards are often reimbursed only after invoices are submitted as work and equipment arrive.
DLS presented a fiscal 2027 operating budget decrease to $58.5 million and a capital allowance reduction to about $339 million, attributing much of the change to timing shifts and one‑time items in fiscal 2026. DLS asked for periodic updates on federal reimbursements tied to large discretionary awards, including the EPA Clean Ports grants and additional federal funding for projects such as the Howard Street tunnel and Mid Chesapeake Bay Island ecosystem restoration.
Acting MDOT Secretary Katie Thompson and MPA Executive Director Jonathan Daniels defended the port’s performance and said projects are progressing: Thompson said the Howard Street tunnel was ahead of schedule and would increase freight capacity by creating a double‑stack corridor; Daniels highlighted record container throughput and cruise calls in 2025 and described ongoing dredging and ecosystem restoration programs that support port navigation and environmental mitigation.
MPA explained why large grant awards may appear unreimbursed at early stages: awards are frequently reimbursed after the awardee incurs eligible costs and submits invoices, so a $146 million Clean Ports grant may only show modest reimbursements until equipment procurement and invoicing proceed. Daniels said the port is not experiencing systemic problems drawing down federal funds and anticipates greater reimbursements as equipment is delivered and invoices processed.
Members probed the Dundalk Marine Terminal Berth 11–13 reconstruction; MPA said phase 1 is under NEPA review with anticipated NEPA completion in April 2026 and potential construction start in early 2028, with total investment possibly approaching $300 million over the project life. MPA stressed competition from other East Coast ports and the need to invest to retain cargo and jobs.
Committee members asked for additional reporting on federal grant drawdowns and on the Howard Street tunnel; MPA agreed to continue quarterly reporting as recommended by DLS.
