Harbor Maintenance Trust Fund struggles with funding issues

In the United States, seaports play a crucial role in global trade, facilitating international commerce and contributing to economic growth. To maintain the efficiency of these vital infrastructures, funding has been a significant concern, leading to widespread policy debates and potential reforms in various initiatives. The Harbor Maintenance Trust Fund (HMTF), established to support the maintenance and operations of U.S. ports, has undergone significant changes since its inception, with its current form evolving from the Port Infrastructure Development and Improvement Trust Fund in the 1980s. The fund primarily relies on the Harbor Maintenance Fee (HMF), which is charged on eligible shipments to finance port improvements, dredging, and maintenance activities. However, the 1998 Supreme Court ruling that exempted exports from the HMF has raised issues of inequity, adversely affecting international trade relations. This policy brief outlines three potential reforms: implementing a user fee, replacing the HMF with general fund appropriations, and increasing diesel fuel taxes to address these existing funding challenges. Ensuring the sustainability of the HMTF is vital, as the efficiency of seaports has a direct impact on the broader economy. The brief aims to offer a comprehensive overview of past and current issues surrounding seaport funding, aiming to lead towards a more equitable and effective funding mechanism for the future.