The US Army Corps of Engineers has allocated approximately USD70 million from the Harbor Maintenance Trust Fund (HMTF) to the Port of Los Angeles for harbour maintenance, seismic resiliency and navigational safety improvements. The San Pedro Bay port complex was allocated a record USD131.8 million.
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The HMTF is funded by a commercial cargo tax paid by US importers moving goods through US ports. This money is then allocated for harbour maintenance and navigation improvements at those ports. Although the Port of Los Angeles and other “donor ports” contribute over half of the total funding to the HMTF, they have traditionally received less than 3% of that funding back for harbour improvements.
Reforms enacted in 2020 established a framework to address this imbalance and an initial round of funding was allocated to donor ports in Fiscal Year 2024. However, no funding was allocated in Fiscal Year 2025, leading to additional reforms enacted this year that ensure consistent implementation of this equitable funding formula.
Congress has appropriated USD3.245 billion in HMTF funding for Fiscal Year 2026, and appropriated USD416.8 million specifically for donor and energy ports through Section 102 of the Water Resources Development Act. These funds ensure that ports like Los Angeles receive the support needed to keep their ports well maintained and competitive.
“After years of donor and energy transfer ports being short-changed, I’m pleased to see the Army Corps finally implementing the reforms Congress enacted in 2020 to ensure these ports receive their fair share,” said Senator Alex Padilla. “When I raised this directly with Assistant Secretary Telle earlier this year, he committed to following the law – and this funding reflects that commitment. These investments will allow the Ports of Los Angeles and Long Beach to move forward on critical infrastructure and maintenance projects, including seismic upgrades, wharf repairs, and other essential improvements that keep our supply chains strong and resilient.”
“The Port of Los Angeles is a leading economic driver for our state and country, handling large volumes of imports and exports on the global stage,” said Senator Adam Schiff. “These critical funds will address long overdue maintenance projects and safety upgrades – ensuring the port remains one of the finest global trade hubs in the world.”
“The Port of Los Angeles is the backbone of our economy,” said Congresswoman Nanette Barragán. “It moves more goods than any other US port, supports over 1 million jobs nationwide, and keeps our supply chains running. For too long, donor ports like the Port of LA paid into the system without receiving their fair share back. The reforms Congress passed in 2020 are finally changing that. This additional funding will advance critical projects like dredging, seismic upgrades, and wharf repairs that keep our port safe and running efficiently. It’s about making sure our port will have the resources it needs to remain safe, competitive, and ready to meet the demands of the future.”
“The Port of Los Angeles is the busiest trade gateway in the country and a critical economic engine, generating over USD300 billion cargo value a year,” said Los Angeles Mayor Karen Bass. “We’re thankful to our congressional delegation for helping ensure that the port received our fair share of these much-needed funds for critical maintenance and repair projects.”
“The Port of Los Angeles has long been one of the primary contributors to the HMTF,” said Los Harbour Commissioner President Lucille Roybal-Allard. “It’s good news that we now receive a more equitable share of those funds back to carry out important project here in Los Angeles.”
“Right now, the Port is looking at more than USD6 billion in future navigational maintenance and repair projects,” said Port Executive Director Gene Seroka. “With this support, repairs can move forward more quickly, ensuring that our port’s infrastructure continues to meet world-class expectations.”
The port plans to use its HMTF allocation for a variety of maintenance and repair projects, including dredging, seismic safety upgrades, wharf and fender repairs, pile replacements, sediment removal and remediation, and improvements to slips and channels. The Port of Los Angeles has identified more than USD6 billion in eligible expanded-use projects, many of which are shovel-ready and can immediately utilise new HMTF funding. Priority projects include:
• Berths 49-50 Wharf & Fender Repair – USD25 million
• Berth 305 Wharf Retrofit – USD18 million
• Berth 126 Wharf Seismic Upgrade – USD322 million
• Berths 238-239 Marine Oil Terminal Improvements – USD35 million
• Berths 167-169 Marine Oil Terminal Improvements – USD44 million
• Legacy Sediment Removal & Remediation – USD140 million
With these projects ready to move forward, the Port stands fully prepared to put its HMTF allocation to work immediately.
The HMTF, administered by the US Army Corps of Engineers, is funded through a 0.125% tax paid by importers to support maintenance of the nation’s navigable waterways. Established in 1986, the fund was originally limited to maintenance dredging to preserve channel depth and width. Despite generating nearly half of all HMTF revenue, deep‑water donor ports—like the Port of Los Angeles—historically received only about 3% back due to their naturally deep harbours and reduced dredging needs.