Trump administration questions Maryland FSK bridge cost

Bloomberg

The federal government's pledge to cover the full cost of rebuilding Maryland's Francis Scott Key Bridge — a departure from the way most infrastructure projects are financed — is coming under pressure from the Trump administration.

Shortly after the bridge's catastrophic collapse in March 2024, then-President Joe Biden promised to cover the full replacement costs. In December, under the Biden administration, Congress agreed to a 100% federal cost share as part of a larger $100 billion of disaster relief funding included in a fiscal 2025 continuing resolution.

Since then, the Trump administration has expressed concerns about the cost and timeline of the project as well as the state's use of diversity-equity-inclusion contracting requirements.

President Trump in an August social media squabble with Maryland Gov. Wes Moore, a Democrat, threatened to "rethink" the federal commitment.

Maryland shortly after the collapse pegged the cost at around $1.9 billion with a 2028 completion date. The toll bridge was financed by a $220 million revenue bond issuance in 1968. 

The state is expected to provide an update on the cost and timeline later this year.

On Thursday, Transportation Secretary Sean Duffy sent Moore a letter asking for a meeting to go over the costs and timeline. The administration, he said, wants the project "to be a model of how to build quickly and cost effectively."

Duffy highlighted a recent Politico report that said the cost may rise to $5 billion and the completion date pushed back to 2030.

"It's my job to ensure the American people's tax dollars are spent properly and major projects are completed on time and on budget," Duffy said. "We will leverage our oversight authorities to ensure this vital bridge is rebuilt the right way."

Duffy also warned Moore to avoid "DEI contracting," saying it would drive up costs. The use of "race- or sex-conscious factors in contracting decisions could introduce significant legal vulnerabilities and inefficiencies in the management of the project," Duffy said.

Moore, in response to Duffy's letter, said the project is already in the design phase with demolition and pre-construction also underway.

"We will continue to work with the Trump Administration to find ways to reduce costs and rebuild faster," Moore said. "We anticipate the price estimation process to be finalized in the coming months and we will provide regular updates from the Maryland Department of Transportation about the project's status."

S&P Global Ratings in April dropped the outlook for the Maryland Transportation Authority's AA-minus-rated revenue bonds to negative from stable due to concerns about the federal funding promised to rebuild the bridge.

The FRSK bridge collapsed into the Patapsco River at the Port of Baltimore in March 2024 after being struck by a massive cargo ship. The 1.6-mile-long bridge spans the Patapsco River just south of Baltimore's Inner Harbor and carries over 31,000 cars a day via four lanes of traffic traveling along I-695, a bypass around downtown Baltimore.