Urgent need for Baltimore's Key Bridge construction funding explained to Congress
BALTIMORE -- Pleas were made in front of the Senate Appropriations Committee on Wednesday, explaining why funding for Baltimore's Francis Scott Key Bridge reconstruction and Small Business Administration (SBA) loans are critical.
Members of the Maryland Congressional delegation made their case to Congress about why President Joe Biden's $100 billion disaster supplement needs to be passed quickly. Earlier this week, Biden submitted a disaster relief plan to Speaker of the House Mike Johnson, which included a request for funding to pay for the full cost of rebuilding the Key Bridge.
U.S. Senator Chris Van Hollen, from Maryland, and other members of the Senate Appropriations Committee heard testimony from the Department of Transportation, FEMA and the Small Business Administration.
Are disaster programs running dry?
The takeaway from their testimony is that disaster programs are running dry, which could have an impact on Maryland businesses and the timeline for how soon the Key Bridge will be rebuilt.
"This funding request covers the entire backlog from Helene to Milton, to the Francis Scott Key Bridge replacement to dozens of other disasters," Transportation Secretary Pete Buttigieg said.
In his letter to Congress, President Biden explained that many disaster programs are tapped out and need to be funded to provide support to several states.
Sec. Buttigieg explained the president is asking to fund the entire reconstruction. Any insurance money acquired during this rebuild will be given back to the federal government. Buttigieg said this collapse underscores the need for more funding now.
"Right now, we have $119.6 million in the entire account, which means we are very much one disaster away from being completely out of funding," Buttigieg said.
SBA's financial concerns
The Small Business Administration (SBA) said it is out of money after giving out thousands of disaster loans totaling nearly $2 billion this year, including loans in Maryland.
The SBA said the funds have run completely dry and there is a backlog of applications in the cue.
"Behind each loan is a story of a resilient American seeking to rebuild and recover," said Isabel Guzman, administrator for the Small Business Administration. "SBA has a vital role to play in the federal disaster response, but the agency's disaster loan program has been unable to meet demand since Oct. 15."
Sen. Van Hollen made his plea for a quick bipartisan resolution, saying when a bridge fell in Minneapolis, Minn., in 2007, it took Congress five days to pass legislation and relief dollars.
"Thirty-five thousand vehicles cross this [Key] bridge every day, so you can imagine the congestion and loss of economic opportunity that is ongoing," Van Hollen said.
A spokesperson for the SBA shared the following statement:
"Each borrower's circumstances are unique and many factors could influence a borrower's ability to receive funding, so we do not comment on individual situations.
For borrowers who believe they may be eligible for additional funds or have questions about their loan status, we strongly encourage them to contact SBA's Customer Service Center (CSC) for tailored support. Borrowers can reach out the CSC by phone at 1-800-659-2955, or 7-1-1 to access telecommunications relay services. Borrowers can also submit a secure message via the MySBA Loan Portal.
Additionally, if a disaster loan was approved prior to the funding lapse which occurred on October 15, 2024, any delay in receiving funds should not be attributed to the lapse. We are committed to assisting borrowers and encourage them to reach out directly for personalized guidance on their situation."
Call to support Key Bridge funding
Sen. Van Hollen encouraged members of Congress in both chambers to support funding to rebuild after the bridge collapse on March 26. He said Maryland has supported initiatives nationwide when states were in need, and now it is time for the country to back The Old Line State.
"This has been an all-for-one and one-for-all," Van Hollen said. "That's been the motto of the state of Maryland and so we're very much hoping, and we expect our colleagues from around the country to support us."
The deadline for Maryland small businesses to apply for SBA relief loans is Dec. 30.
Meanwhile, Congress will now debate if this supplement should be funded before the next Congress convenes in January.