Biden announces US$ 2.9B in funding for ports and other infrastructure projects
U.S. President Joe Biden and the United States Department of Transportation (DOT) has announced US$ 2.9 billion in funding for major infrastructure projects and strengthening the country's supply chain.
According to a DOT statement, the funding comes through Biden’s Bipartisan Infrastructure law, and is designed to reduce burden for state and local applicants to get their projects into the pipeline.
The National Infrastructure Project Assistance (MEGA) program targets projects that were too large or complex for traditional funding programs.
Eligible projects could include highway, bridge, freight, port, passenger rail, and public transportation projects of national and regional significance. These could be bridges or tunnels connecting two states; new rail and transit lines that improve equity and reduce emissions; and freight hubs integrating ship, train and truck traffic.
The DOT will award 50 percent of funding to projects greater than $500 million in cost, and 50 percent to projects greater than $100 million but less than $500 million in cost. The program will receive up to $1 billion this year alone and be able to provide multi-year funding to projects.
This announcement comes just a week after the Biden Administration announced the Freight Logistics Optimization Works (FLOW), a pilot project that officials say will focus on addressing supply chain vulnerabilities and congestion, working to speed up the movement of goods, and lower costs for families.
Part of the FLOW initiative is an emphasis on improved information exchange in order to improve information about the movement of goods and freight.
Participating entities in this program include the Port of Long Beach, Port of Los Angeles, Georgia Ports Authority, CMA CGM, MSC as well as retailers, trucking and logistics companies.