The shortage of Federal Highway Administration emergency relief funds has brought up a significant debate surrounding the eventual replacement of the Francis Scott Key Bridge in Baltimore. The current funding shortfall of over $3.5 billion has left many eligible projects in limbo, with a backlog of projects in 38 states and territories stemming from more than 130 eligible events. This financial constraint has raised questions about how the replacement of the toll bridge will be financed.
Typically, state projects receive 80% reimbursement for replacements, while federal projects can qualify for up to 90% reimbursement. The remaining cost is usually covered by the state. However, Maryland is seeking 100% reimbursement, citing past precedents where the federal government covered the total cost of replacements for other catastrophic events.
Sen. Ben Cardin of Maryland emphasized the importance of quick action in securing the necessary funding, as any delays would result in additional losses for the communities and frustration among drivers. With toll revenue collected from the bridge amounting to $56.8 million in 2023, the debate on the use of federal taxpayer money to fully fund the replacement has intensified.
The discussion of toll revenue has further complicated the funding debate. Sen. Shelley Moore Capito questioned why American taxpayers should be expected to cover the 10% cost share that Maryland would have to bear, considering the dedicated source of revenue from tolls over time. However, Sen. Cardin argued against using toll facilities to repay the state’s share, deeming it unfair to penalize Maryland in such a manner.
In response to the funding dilemma, Sen. Cardin and Sen. Chris Van Hollen have drafted legislation to ensure that any funds recovered through insurance claims would be guaranteed to the federal government. With estimates for insurance reimbursement currently standing at $350 million, the legislation aims to secure these funds for the bridge replacement.
The House Committee on Transportation and Infrastructure also held a similar hearing in May to address some of the key issues surrounding the funding debate.
As the debate over funding for the replacement of the Francis Scott Key Bridge continues, it is evident that finding a solution that addresses the financial constraints while ensuring the timely reconstruction of the bridge is crucial. Balancing the needs of the state, federal government, and taxpayers will be essential in navigating this complex funding dilemma.