J00J00 – Maryland Transportation Authority
On December 23, 2024, President Joseph R. Biden, Jr. signed into law the American Relief Act, a continuing resolution that funds the federal government through March 14, 2025. Among other disaster relief provisions included in the bill, funding is authorized within the FHWA Emergency Relief (ER) Program to cover 100% of the costs of reconstruction of the Francis Scott Key Bridge through federal funds. As with other FHWA programs, ER is a reimbursable program, and a state that has been confirmed as eligible to receive ER funds by FHWA receives payment after completing construction and submitting vouchers to FHWA for reimbursement of the specified federal share. MDTA should discuss the anticipated timing of receipt of the funding and if any funds have been received to date. According to federal program guidelines, damages awarded to a state through litigation, in addition to insurance payouts, are required to be used to offset federal ER funds. It is anticipated that additional funding for the reconstruction of the Francis Soctt Key Bridge could be recovered by the State as damages awarded from several lawsuits currently pending against the ship’s owner and operator, Grace Ocean Private Limited and Synergy Marine Group. On September 24, 2024, Attorney General Anthony G. Brown, on behalf of the State, filed a claim in the U. S. District Court for the District of Maryland against the ship’s owner and operator alleging that the collapse of the bridge was entirely preventable, and that the ship’s o wner and operators failed to exercise proper care and diligence in operating the ship to maintain its seaworthiness. In the lawsuit, the following costs and damages to the State are cited:
removal costs of the remnants of the Francis Scott Key Bridge;
replacement costs to build the bridge;
lost toll revenues until the bridge reopens;
costs to numerous State government agencies to respond to the collapse, perform salvage operations, and mitigate the impact for Maryland residents;
environmental damage t o the State’s water and air quality due to the release of pollutants and debris into the Patapsco River and due to increased vehicle mileage on alternate routes through the Baltimore area;
increased maintenance costs due to wear and tear on other roads, highways, and other State infrastructure;
lost revenues and taxes due to economic disruptions; and
other economic losses due to the resulting closure of the shipping channel providing access to the Port of Baltimore during a portion of calendar 2024.
Analysis of the FY 2026 Maryland Executive Budget, 2025 25
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