During a recent appearance on Mornings with Maria, I discussed the collapse of the Francis Scott Key Bridge. Following the interview, left-wing media outlets reported that I called President Biden’s proposal to use federal funds to rebuild the bridge “outrageous.”
These comments were taken out of context, as is clear to anyone who watched the interview in its entirety. I also clearly stated that rebuilding the bridge and reopening access to the port needs to occur.
Just 24 hours after the bridge collapse, Biden said, “It’s my intention that the federal government will pay for the entire cost of reconstructing that bridge, and I expect the Congress to support my effort.” What I found “outrageous” was Biden’s immediate call for Congress to pass a new taxpayer-funded appropriations bill to entirely cover the cost of rebuilding the bridge without even considering existing or alternative funding options.
For example, Maryland received an additional $6 billion in federal funds through the recent transportation and infrastructure bill. A portion of that could be used to help cover the cost of rebuilding the bridge. Further, the state of Maryland currently has $2.5 billion in its “rainy day” fund. This surplus comes largely from unspent federal COVID funds. This marks another potential option for using already-allocated federal funds to cover a portion of the bridge rebuild.
Transportation Secretary Pete Buttigieg has also noted that his department has $950 million in emergency funds, made available through the infrastructure bill, which are specifically designated for emergency projects such as this one. Again, another example of already-allocated federal funds that can be used for this project.
I also stated in the interview that the Singapore-flagged ship that hit the bridge would likely bear some responsibility for covering the cost of rebuilding it. This was a point echoed by Secretary of Treasury Janet Yellen, who said she would expect the ship’s insurance company to cover a portion of the rebuild.
Bruce Carnegie-Brown, chair of insurance giant Lloyd’s of London, told CNBC that the “collapse of a major Baltimore bridge and its knock-on effects could result in the biggest-ever marine insurance payout.” Experts and analysts at Morningstar DBRS, one of the world’s largest credit rating agencies, predict the insurance payout could total $2 billion to $4 billion. Similarly, Barclays, one of the largest, most well-respected banks in the world, estimates the insurance payout will be between $1 billion and $3 billion.
This means, in theory, insurance payouts could potentially cover the entire cost of rebuilding the bridge without any taxpayer dollars being spent.
Further, the Francis Scott Key Bridge is a toll bridge operated by the Maryland Transportation Authority. That means tolls collected from cars go to the state rather than the federal treasury. If the federal government is going to finance significant portions of rebuilding the bridge, there should be a conversation about transitioning future toll funds to the federal government. While this, perhaps, does not need to be permanent, it is a realistic option for the federal government to recoup some of the money it will spend to rebuild the bridge.
There are also other points that must be considered before Congress passes legislation to fund the rebuilding of the bridge. We must ensure that burdensome Biden administration environmental regulations will not hinder the speed at which it can be rebuilt. If such regulations will impede the rebuild, they must be addressed in any spending bill that Congress passes.
With all of that said, the point I was making in the Mornings with Maria interview was that before Congress spends new taxpayer dollars on a project which, according to Secretary Buttigieg, does not yet even have a cost estimate, we must first understand the various options that exist for financing the project.
We must be good stewards of taxpayer funds, and passing a potentially multi-billion-dollar bill without all of the necessary information would fiscally irresponsible, especially considering that service on our $35 trillion national debt has drastically increased under Biden, from $350 billion to more than $870 billion per year.
Dan Meuser, a Republican, represents Pennsylvania’s Ninth Congressional District in the U.S. House of Representatives.
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