Ports of L.A., Long Beach get $112M in federal funding

A day after new federal funding was announced for the twin ports of the San Pedro Bay Complex, officials Tuesday were celebrating $112 million that will support construction upgrades, operations and maintenance.

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On Monday afternoon, Sen. Alex Padilla announced that the funding will come as part of the 2024 U.S. Army Corps of Engineers Work Plan. According to Padilla's office, the infrastructure repairs for piers and wharves at the San Pedro Ports will strengthen supply chain networks that the nation depends upon.

"The ports of Los Angeles and Long Beach move 40% of the nation's container imports, transporting the goods that power our economy," said Padilla, who chairs the Senate's Environment and Public Works Subcommittee on Fisheries, Water and Wildlife. "I am glad to see the Army Corps heed my call to fund these crucial upgrades that will bolster global supply chains and make long overdue repairs to the ports."

The Port of Long Beach is expected to receive $54 million to support approximately 31 miles of waterfront facilities. The Port of Los Angeles is expected to receive $58 million.

Officials said that for more than a decade, the maritime industry has worked with federal lawmakers to authorize eligibility for new "expanded use" projects to ensure that the balance of the Harbor Maintenance Trust Fund was spent down, and that future spending would match the level of revenue collected each year. These efforts culminated in the passage of the Water Resources Development Act and the CARES Act of 2020.

The HMTF is administered by the U.S. Army Corps of Engineers. Importers pay a 0.125% tax on the value of their cargo to fund maintenance projects on the nation's navigable waterways to ensure the safe flow of commerce. Enacted in 1986, the HMTF was initially limited in its use to maintenance dredging to maintain the authorized depth and width of federal navigation channels.

A handful of U.S. ports -- most notably deep-water ports such as Los Angeles and Long Beach -- contributed half of HMTF revenue, but recouped a mere 3% return due to their naturally deep harbors and lack of need for maintenance dredging projects. Over time, HMTF revenues outpaced spending and the fund built up a multibillion-dollar surplus.

The $58 million allocation to the Port of Los Angeles is a nearly tenfold increase compared with the $6 million it received in 2023, and marks the full implementation of these reforms.

"Addressing this disparity has taken years," Los Angeles Harbor Commission President Lucille Roybal-Allard said in a statement. "We are grateful to all our supporters in the maritime community and Congress, and especially Rep. Grace Napolitano. Through her leadership on the House Transportation & Infrastructure Committee, Rep. Napolitano championed the cause of allocating these funds more equitably for critical harbor maintenance and repairs that ensure the safety and reliability of all U.S. ports."

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