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Ports Association Warns of Economic Risks in Proposed Federal Budget Cuts

Posted on June 4, 2025

The American Association of Port Authorities (AAPA) has expressed concerns over provisions in the House-passed One Big Beautiful Bill Act (H.R. 1), cautioning that proposed funding rescissions could hinder domestic manufacturing and port modernization efforts.

In a letter dated June 2, addressed to Senate Majority Leader John Thune and Senate Appropriations Chairwoman Shelley Moore Capito, AAPA President & CEO Cary Davis highlighted what the association considers potential negative impacts of Sections 42102 and 42104 of the bill. These sections propose rescinding funds from the Clean Ports Program and the Diesel Emissions Reduction Act (DERA) grant program.

The Clean Ports Program, initially allocated $3 billion by Congress, aims to assist ports in acquiring new cargo-handling equipment and infrastructure upgrades. The program enforces strict Build America, Buy America standards, ensuring that funds are used to purchase equipment manufactured domestically. According to the AAPA, rescinding these funds could disrupt ongoing procurement plans and deter future investments in American manufacturing.

Similarly, the proposed $60 million cut to the DERA grant program, which supports goods movement projects, could impede ports’ efforts to upgrade to more fuel-efficient diesel engines. The AAPA emphasized that both programs are instrumental in reducing air pollution at ports and bolstering American manufacturing.

The association urged the Senate to omit these sections from its version of the budget reconciliation bill, arguing that the proposed cuts would offer minimal budgetary savings while posing significant risks to economic development and national security.

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