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Biden administration approves initial $60M for Key Bridge response

Maryland Gov. Wes Moore and U.S. Transportation Secretary Pete Buttigieg after a news conference about the collapse of the Francis Scott Key Bridge on Tuesday. (Kim Hairston/Staff)
Maryland Gov. Wes Moore and U.S. Transportation Secretary Pete Buttigieg after a news conference about the collapse of the Francis Scott Key Bridge on Tuesday. (Kim Hairston/Staff)
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Federal officials on Thursday quickly approved an initial $60 million request from Gov. Wes Moore’s administration to cover preliminary costs for mobilization, operations and debris recovery following the Francis Scott Key Bridge collision.

The funds were described as a “down payment” while damage assessments continue in what officials have said will be a long and costly path toward clearing the Port of Baltimore and rebuilding the bridge that collapsed Tuesday, killing six men and unleashing a vigorous recovery effort.

U.S. Transportation Secretary Pete Buttigieg said in a statement approving the funds that “no one will ever forget the shocking images of a container vessel striking the Francis Scott Key Bridge, causing its collapse and the tragic loss of six people.”

“The federal emergency funds we’re releasing today will help Maryland begin urgent work, to be followed by further resources as recovery and rebuilding efforts progress,” Buttigieg said. “President Biden has been clear: the federal government will do everything it takes to help rebuild the bridge and get the Port of Baltimore back open.”

Moore said in a Thursday evening news conference that he spoke to Buttigieg just before 6 p.m. and that he was “grateful for the way that the administration has continued to lean in and support us.”

Biden, a Democrat, immediately pledged on Tuesday for the federal government to pay for the cleanup and rebuilding process, which experts say could ultimately take a decade or more.

Maryland Transportation Secretary Paul Wiedefeld requested the “quick release” of an initial $60 million in a letter to the Federal Highway Administration and it was granted hours later. The funds will allow officials to keep moving quickly on debris removal, restoring traffic operations and emergency construction, Wiedefeld wrote.

“The State of Maryland’s budget for emergencies is limited and unable to fund an emergency of this magnitude,” Wiedefeld wrote.

In a briefing Thursday before the approval of the funds was announced, Biden Press Secretary Karine Jean-Pierre reiterated the president’s intention to “move heaven and earth to reopen the port and rebuild the bridge as soon as humanly possible.”

That process, however, will be complicated. The U.S. Army Corps of Engineers is leading the effort to remove the remnants of the bridge, some of which remains on the front of the ship, forcing the bow to sit on the bottom of the river.

U.S. Sen. Chris Van Hollen said Wednesday the preliminary estimates for clearing the channel were $40 million to $50 million. He said the funds would be immediately available and come from the Corps’ budget typically used for dredging operations.

Another indeterminate amount for rebuilding the bridge will likely come from federal emergency relief funds, which Moore’s administration officially requested in a separate letter Wednesday. The announcement of the first $60 million indicated those additional emergency relief funds will be granted.

Buttigieg said Wednesday that will provide immediate access to an account that has roughly $950 million available.

Congressional approval will likely be necessary to add to that amount when the funds are depleted, as well as to ensure Maryland isn’t on the hook for covering 10% of the costs — a requirement when tapping such funds, Van Hollen said.

Officials have also discussed possible complications that could come with using the federal funds, like limiting tolling on the future bridge. Wiedefeld acknowledged those discussions in the letter Wednesday.

“In accordance with our conversations, receipt of Emergency Relief funds, through Maryland State Highway Administration, will not impact the ability of the Maryland Transportation Authority to continue to collect tolls for the Francis Scott Key Bridge and its approaches in the future when reconstructed,” Wiedefeld wrote.

In addition to debris removal and emergency construction, the first federal investment can be used for design and reconstruction of the bridge, according to the announcement. The Federal Highway Administration is also working toward a new bridge by providing technical assistance, conducting site assessments and administering emergency contracts.

State lawmakers are discussing the need of additional assistance — potentially in the form of financial relief for small businesses and port workers — before the annual Maryland General Assembly session ends April 8.

Meanwhile, Biden’s pledge has offset immediate concerns that the incident will add significantly to the state’s $3.3 billion, six-year transportation funding shortfall. The funding issue has already put at risk upcoming projects around bridge and road repair, new construction and a long list of transportation services — and a path to resolving the shortfall is the last major hang-up in state lawmakers’ budget negotiations.