Senate Environment & Public Works Committee Hearing on Francis Scott Key Bridge Response Addresses Federal Funding and Role of Tolling

On July 10, 2024, the Senate Environment and Public Works (EPW) Committee held a hearing on the response to Baltimore’s Francis Scott Key Bridge collapse. The hearing aimed to examine the unified response to the collapse, the effort to reopen the Port of Baltimore, and the next steps to rebuild the bridge. Key issues of interest included the share of federal funding for the bridge replacement and the role of tolling.

In her opening remarks, Ranking Member Capito highlighted that the Francis Scott Key Bridge generated $56 million in toll revenue in 2023 for the State of Maryland. Capito suggested that this toll revenue should be considered as Congress evaluates the federal share of rebuilding the bridge. She argued that Congress should establish criteria that could be applied equitably across various demands and the project backlog for the federal Emergency Relief fund.  Capito suggested that toll revenue could be a source of funds for a 10% state share of the bridge replacement project. 

Senators Ben Cardin (MD) and Chris Van Hollen (MD) also made opening statements.  The Democratic Senators urged Congress to pass their bill [S. 4114 (118)], which would waive the 10% state match for federal Emergency Relief funds for the bridge replacement.  The IBTTA Board of Directors supported this position with a letter to Congress.  Cardin argued that a full federal contribution for the cost of bridge replacement was consistent with precedents set on the Minnesota I-35 bridge collapse and Hurricanes Maria and Fiona.  The Senators noted that tolls from the collapsed bridge will be lost for at least four years while the crossing is rebuilt.  Toll revenue had already been programmed for critical state investments and ongoing operations within the state.  Additionally, traffic diversions to alternative routes create extra maintenance costs from diverted heavy vehicles and related air quality and congestion impacts in local communities.

During the Q&A portion of the hearing, the availability of toll revenue to repay the federal investment in rebuilding the bridge was explored further. The bridge replacement is estimated to cost $1.7 billion, with significant proceeds expected to be recouped through insurance claims. Cardin and Federal Highway Administration’s (FHWA) Shailen Bhatt confirmed that if the 10% state share was waived, any proceeds from the bridge's insurance policy and other recoveries from responsible parties would be used to reimburse federal investment from the Emergency Relief Fund. 

The funding decisions for the bridge replacement affirm the current limits on tolling interstate highways and the use of toll revenues on federalized facilities. The formal designation of the I-695 corridor as an interstate highway reduced the required state contribution for the bridge replacement from 20% to 10%.  However, the action also federalized the bridge replacement project, extending all the limitations on revenue uses contained in Section 129 of Title 23 of the U.S. Code.  As the toll industry looks toward reauthorization of the federal program, the challenge of advocating for fewer federal restrictions for tolling and use of revenues will need to acknowledge this precedent for the Franscis Scott Key Bridge.

Another important issue being raised involves the factors Congress should consider when weighing waivers of the state cost-share requirements.  FHWA’s Shailen Bhatt suggested that the scope and scale of the project are paramount, targeting investments that would otherwise overwhelm state budgets.  An overarching consideration, not addressed during the hearing, is how the project serves national interests.  Full federal funding deserves full consideration when a project affects national objectives.  For the Franscis Scott Key Bridge, these objectives are tied to the fact that the bridge is an integral element of one of the busiest sections of I-95, supporting national and local economic interests and essential mobility.  The bridge is vital for robust and resilient supply chains and is a crucial link for moving freight serving the nation and the world.  This essential connection must be expeditiously rebuilt to restore its role in serving national interests.