Gov't giving $450M to relieve congestion at U.S. ports, aid supply chains, lower prices

Feb. 23 (UPI) -- President Joe Biden's administration said Wednesday that it's making hundreds of millions of dollars in federal funding available to overcrowded U.S. ports, in a bid to unclog supply chains and lower prices amid record inflation.

The Transportation Department said that it will make $450 million available to ports, to expand capacity and improve the flow of goods. The money will come from the $1 trillion-plus bipartisan infrastructure law that was passed last year.

Various U.S. ports have seen major congestion since the start of the COVID-19 pandemic and the bottlenecks have helped push up the cost of some imported goods.

Biden has taken multiple steps to ease the crowding. Last fall, he asked ports to stay open longer for seven days a week to help clear the backlogs and committed billions to improving infrastructure at the vital ports of entry.

"President Biden is leading the largest ever federal investment in modernizing our country's ports, which will improve our supply chains and the lives of Americans who depend on them," Transportation Secretary Pete Buttigieg said on Wednesday. File Photo by Oliver Contreras/UPI

The department's Maritime Administration said the new funding is the most ever given in the Port infrastructure Development Program.

"We're proud to announce this funding to help ports improve their infrastructure- to get goods moving more efficiently and help keep costs under control for American families," Transportation Secretary Pete Buttigieg said in a statement.

Buttigieg said that the administration is leading the largest-ever federal investment in modernizing American ports. Officials said Wednesday that the new funding is almost twice last year's investment in the Port Infrastructure Development program.

"The historic investments made by the Bipartisan Infrastructure Law will help remove bottlenecks by enabling ports to expand capacity and improve intermodal connections," Acting Maritime Administrator Lucinda Lessley said in a statement.

Lessley said the grant funds will also create new jobs in the maritime industry.

Ports will be able to apply for the funding until May, and the grants will be given out by the fall.