Lucy Marvin's Maritime Musings: Reading the Tides – What's Ahead for Federal Port Investment
Editors' Note: Lucy is the newest member of The Commission Blog editorial team and joins Holland & Knight to bolster our maritime, rail and road efforts as a part of the Public Policy & Regulation Group and Federal Government Affairs Practice. As FMC Managing Director during the Biden and second Trump Administrations, Holland & Knight has turned The Commission Blog over to Lucy to share her invaluable insights each day during the week of July 20, 2026. These efforts kick off Holland & Knight's celebration of the FMC's 65th anniversary on August 12, 2026, with an industry event (more details to follow).
Funding ports and the supply chain infrastructure that connects them to the broader freight network is essential to maintaining the fluid movement of cargo through the U.S. ocean transportation system. Although the FMC does not directly fund or construct infrastructure, the efficiency and capacity of ports, terminal facilities and landside connections directly affect freight fluidity and the ocean shipping practices within the Commission's jurisdiction. Congressional investment decisions therefore can have important implications for the FMC's broader mission of promoting a reliable, competitive and economically sound international ocean transportation system.
As the U.S. Congress considers surface transportation reauthorization and fiscal year (FY) 2027 appropriations legislation, several measures will shape the federal government's role in financing freight transportation and port infrastructure. The U.S. House of Representatives' proposed BUILD America 250 Act would reauthorize a number of multimodal freight programs through FY 2031, including the Infrastructure for Rebuilding America (INFRA) and National Infrastructure Project Assistance (MEGA) grant programs. (For detailed analysis, see Holland & Knight's previous alert, "A Closer Look at the BUILD America 250 Act," May 27, 2026.) Although these programs are not dedicated exclusively to ports, they authorize funding for nationally and regionally significant freight investments, including first- and last-mile highway improvements, freight rail connections, intermodal freight facilities, bridges and other transportation projects that improve access to marine terminals and strengthen freight mobility. The legislation does not reauthorize the Port Infrastructure Development Program (PIDP) – which has typically been included in the annual National Defense Authorization Act (NDAA) as part of the U.S. Maritime Administration (MARAD) reauthorization – and repeals the Reduction of Truck Emissions at Port Facilities program created by the Infrastructure Investment and Jobs Act.
Separate from the authorization process, the House's FY 2027 Transportation, Housing and Urban Development (THUD) appropriations bill would provide $538.2 million for ports through PIDP grants, including $500 million for competitive grants supporting coastal seaports, inland river ports and Great Lakes ports, while also funding other MARAD priorities. It also funds the FMC and the Trump Administration and agency's exact budget request of $40 million. In parallel, the FY 2027 NDAA continues to authorize investments in the nation's maritime industrial base, strategic sealift capabilities, shipyard capacity and defense logistics infrastructure. Together, these measures make up federal investment in ports and the maritime transportation system, each serving a distinct statutory purpose.
Legislative Timing: No Smooth Sailing Yet
As of the posting of this musing, not all is fair winds and following seas for congressional funding and timelines. None of these measures are close to a vote in either chamber. The House Committee on Transportation and Infrastructure approved the bipartisan BUILD America 250 Act by a 62-2 vote on May 22, 2026, but the bill still awaits consideration by the full House, and the U.S. Senate committees of jurisdiction have not released their own comprehensive reauthorization proposal. The House Committee on Appropriations advanced the FY 2027 THUD bill by a 34-27 vote on June 3, leaving House floor action and subsequent negotiations with the Senate still to come. Neither chamber has passed its FY 2027 NDAA, but the House is again preparing for floor action. The House Committee on Armed Services approved its bill by a 44-12 vote. An initial procedural rule failed on June 30, but the House Committee on Rules approved a new rule on July 20, positioning the bill for another floor attempt this week. The new package would also attach the House-passed SAVE Act to the NDAA, which could affect Democratic support. In the Senate, the Committee on Armed Services approved S. 4784 by an 18-9 vote, but a July 14 motion to begin floor consideration received only 50 votes – short of the required 60 – amid Democratic objections concerning the Iran conflict, defense spending and congressional war powers oversight. Senate Majority Leader John Thune (R-S.D.) preserved the ability to call another vote. This is all to say that you should not expect Congress to complete negotiations over any of these measures in the near future. In fact, just a few days ago House Appropriations Committee Chair Tom Cole (R-Okla.) introduced a continuing resolution to keep the government open at FY 2026 levels through December 4, 2026. This is not to say that Congress won't get the job done; they just aren't going to get it done soon.
We at Holland & Knight know that as the September 30, 2026, expiration of current government funding and surface transportation reauthorization approaches, the timing of congressional action takes on added significance for state departments of transportation, ports, project sponsors and transportation stakeholders. Though there is uncertainty for project planning, grant administration and future funding commitments, maritime stakeholders should recognize that many of the most consequential decisions affecting ports and freight mobility occur throughout the legislative process, not solely upon final passage. Authorizations, appropriations, committee negotiations and agency implementation each present opportunities to shape federal transportation policy and investment priorities. Stakeholders that engage early and remain involved throughout these stages are often best positioned to advance their interests.
Holland & Knight will continue to follow these developments and assist clients in navigating the legislative and regulatory processes as Congress considers long-term transportation policy and annual funding measures.