Posted on May 4, 2026
The U.S. Dept. of Transportation’s Maritime Administration on April 28 awarded about $774 million for port projects nationwide, advancing a construction pipeline spanning marine structures, rail connections, container yards and cargo-handling systems.
Transportation Secretary Sean P. Duffy said the investments are aimed at strengthening freight movement and economic resilience. “U.S. ports keep our grocery store shelves stocked, our energy supply chains resilient, and our export market strong,” Duffy said in the announcement.
The FY2025 Port Infrastructure Development Program (PIDP) round—covering 37 awards announced this week—marks the largest single-year distribution in the program’s history, surpassing the roughly $703 million awarded in FY2022.
The American Association of Port Authorities (AAPA) said the record total reflects, in part, funds recovered through AAPA advocacy after rescission from past cycles. John Bressler, AAPA vice president of government relations, says the awards “unlock additional state, local and private investment … of a revitalized American maritime industry.”
The program’s expansion is tied to the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) passed in November 2021; the bipartisan law’s five-year, $2.25-billion PIDP allocation runs through FY2026. Without reauthorization or supplemental funding, PIDP is expected to revert to significantly lower baseline appropriations, reducing the volume of federally backed port projects beginning in FY2027.
AAPA warned the FY2026 cycle includes about $488 million and could “decline dramatically in FY27 after the Bipartisan Infrastructure Law expires.”
Project Pipeline Spans Marine, Rail and Terminal Work
Project descriptions show a mix of marine, landside and intermodal work that translates directly into civil, marine and rail construction activity as projects move toward procurement. MARAD did not identify contractors or designers for most awards, and recipients have yet to release procurement schedules.
In Skagway, Alaska, a $38.6-million grant will support redevelopment of an industrial dock, including the installation of a new fuel header, a roll-on/roll-off ramp and shore power for tugboats, along with the demolition of aging timber docks and legacy fuel infrastructure.
In Duluth, Minn., $27.5 million will fund reconstruction of about 1,150 linear ft of dock wall and demolition of former grain elevators to redevelop roughly 7.5 acres of laydown space.
At Florida’s Port Canaveral, a $20.2-million award will support rehabilitation of North Cargo Berths 1 and 2, including repairs to walls, concrete bents and pier deck structures, along with replacement of fenders, water lines, lighting and bollards. Port officials said the work will extend the structures’ service life by “20 to 30 years,” with construction expected to begin in early 2027 and substantial completion about 16 months later.
Rail-linked port access improvements account for another major portion of awards. In Whittier, Alaska, a $20.4-million award will help upgrade a rail tunnel connecting the port to the Alaska Railroad mainline, expanding clearance for double-stack container operations and adding about 30 railcars.
The Port of Beaumont in Texas will use $37.8 million to add roughly 13,784 linear ft. of rail track, reconstruct its switching interchange and upgrade associated utility systems.
Landside expansion projects focus on container throughput and terminal efficiency. A $48-million award to Port Houston in Texas will support development of a roughly 47-acre container yard at its Bayport terminal, including a new terminal gate, reinforced pavement sections and stormwater, water and electrical infrastructure.
Facilities Upgrades Included in Awards Package
Cargo-handling equipment and terminal modernization are also central to the program. MARAD issued a separate release on the Port of Guam award, detailing a $59.6-million investment for three ship-to-shore cranes and terminal upgrades expected to increase throughput and reduce vessel waiting time by 15% to 20%.
The agency said the project includes typhoon tie-down systems designed to meet FEMA standards for Category 4 and 5 storms, as well as workforce training partnerships. “The Port of Guam is directly linked to the well-being of the people across Micronesia and to the defense of the United States,” Acting Navy Secretary Hung Cao said.
Industrial and bulk cargo projects are also represented. In Donaldsonville, La., a $43.4-million grant will support a dock conveyance system to move iron ore pellets from berths to a planned steel manufacturing facility, while in Baltimore, $39.7 million will fund Phase 2 expansion of Tradepoint Atlantic’s TiL container terminal, including yard buildout and cargo-moving equipment.
California Reps. Julia Brownley and John Garamendi, and Sens. Adam Schiff and Alex Padilla said more than $22 million will support the Port of Hueneme in Ventura County and the Bay Area’s Port of Richmond.
“Funds will rehabilitate an essential wharf and deepen the berth to support larger vessels,” said Kristin Decas, the port’s CEO and director.
Jonathan Porter, director of AGC’s Highways and Transportation Division, said the record round signals a strong near-term outlook for contractors but a less certain one beyond it. “While nearly $500 million is currently available for FY2026, a decline in federal port funding after FY2026 would likely lead to tighter contractor backlogs and more competitive bidding as fewer projects come to market,” Porter said. “That uncertainty reinforces the importance of predictable, long-term investment to sustain project delivery and keep the nation’s freight network moving efficiently.”
As project sponsors move into design and procurement, the FY2025 awards are expected to generate a near-term bevy of construction activity, but with IIJA funding scheduled to sunset after FY2026, contractors and port authorities are watching whether federal support will sustain the pipeline in the years ahead.
