Biden Administration Announces Actions to Help Alleviate Supply Chain Challenges

The Biden administration announced a new set of immediate and short-term actions aimed at alleviating supply chain issues at the nation's ports, waterways, and freight networks on Tuesday, as the administration moves to implement the recently passed but unsigned bipartisan infrastructure bill.

Source: CNN | Published on November 10, 2021

The White House stated in a fact sheet that the goals and actions are as follows: "lay the groundwork for the historic Bipartisan Infrastructure Deal's successful implementation This action plan will increase federal flexibility for port grants, accelerate port infrastructure grant awards, announce new construction projects for coastal navigation, inland waterways, and land ports of entry, and launch the first round of Bipartisan Infrastructure Deal-funded expanded port infrastructure grants."

The announcement comes just days after Congress passed a bipartisan infrastructure package and one day before President Joe Biden visits the Port of Baltimore to promote the bill. Biden has not yet signed the bill into law, and no date for a signing ceremony has been set, as the White House has indicated that an event will be held when Congress returns next week.

However, some implementation efforts are "already underway... even before the bill is signed," according to a senior administration official on a conference call with reporters. When asked about timing, the official stated that "work is being done right now to actually get these projects teed up, get these programs teed up and out the door."

The actions announced Tuesday include greater flexibility for port grants through the Department of Transportation to address supply chain disruptions, funding for a pop-up container yard project currently underway at the Port of Savannah, a $420 million grant program for ports and marine highways that will be launched within the next 45 days, and identifying coastal and waterway projects for $4 billion in US Army Corps of Engineers construction funding.

It will also prioritize identifying key US ports of entry for $3.4 billion in modernization and expansion projects within 90 days, and will open competition for $475 million in port infrastructure grants via the bipartisan bill within 90 days.

"The bipartisan bill greatly benefits the entire goods movement system," the official said.

"The bipartisan bill greatly benefits the entire goods movement system," the official said.

The Savannah, Georgia, grant reallocation, in particular, will provide "immediate relief" ahead of the holiday season, according to the senior official, who added that it "can be operational in 30 to 45 days." The majority of the other actions announced Tuesday, according to the official, are "relatively-short-term programs and projects," with "much more to come."

According to the official, Biden's visit to Baltimore on Wednesday is "an illustrative example" of the private-public partnership at the nation's ports.

The 127-year-old Howard Street Tunnel, which "only accommodates single stack containers right now," will also be nearby during the Baltimore visit. According to the official, it "will be expanded to accommodate double stack containers from the Port of Baltimore all the way out to the Midwest" as part of a project co-funded by federal, state, and private partners.

"It is an example of the type of investment that is required on both the private and public sectors." It also demonstrates how the bipartisan infrastructure plan's co-funding incentivizes the private sector to make these kinds of long-term investments," the official added.