With the Trump administration and the new Congress coming into office, U.S. ports have put forward legislative priorities emphasizing the need to maintain federal funding support for shipping infrastructure and navigation, while opposing additional tariffs. These priorities are promoted by the American Port Management Association (AAPA) to consolidate recent progress made by infrastructure and clean energy programs.

Key Legislative Priorities

1. Infrastructure Investment:
   AAPA urged Congress not to withdraw funding support in the Inflation Reduction Bill (IRA) and the Bipartisan Infrastructure Bill (BIL), which together allocated billions of dollars for port infrastructure before 2026, with funds supporting projects including upgrading coastal waterways and modernizing equipment.
2. Clean Energy and Modernization:
   Ports use IRA funds to convert diesel equipment to power equipment and install charging infrastructure to promote clean energy projects. Projects to support electric vehicle and battery manufacturing have also brought cargo growth to ports in the Southeast and Gulf of Mexico.
3. Objection to the addition of tariffs:
   AAPA expressed concern about Trump's proposed new tariffs, warning higher import taxes could reduce freight volumes and affect port revenues. However, the AAPA recommends that existing tariff revenues be applied to investments in port infrastructure to strengthen supply chains and alleviate inflationary pressures.

‍

Future Challenges

While AAPA's agenda is consistent with some of Trump's priorities, such as simplifying the permitting process and easing restrictions on liquefied natural gas (LNG) development, there remains uncertainty. Trump's proposal to recover unused IRA funds and implement new tariffs could affect recent progress. In addition, the rollback of the IRA requires congressional approval, and previous Republican support for a clean energy tax credit could be a drag.

‍

Looking to the Future

U.S. PORTS WANT FEDERAL GOVERNMENT SUPPORT FOR INFRASTRUCTURE AND CLEAN ENERGY PROGRAMS TO CONTINUE, ENABLING THEM TO MODERNIZE OPERATIONS AND INCREASE COMPETITIVENESS. As the legislative landscape changes, the Port Authority will keep a close eye on progress and advocate policies to support sustainable growth and ensure the resilience of the supply chain.

Source: https://www.joc.com/article/us-ports-urge-trump-congress-to-keep-funds-in-place-but-tariffs-at-bay-5923305