After President Joe Biden said the federal government would pay for the replacement of Baltimore's Francis Scott Key Bridge, the project is estimated to cost between $400 million and more than $1 billion, with some Social media users questioned why the company that owned the ship was not covering the cost.
In remarks on March 26 after the accident, Biden said the federal government would “pay for the full cost of rebuilding the bridge” and said he expected Congress to support the effort.
Users expressed their anger on social media.
“That ship was outsourced to a Danish company and operated under the Singaporean flag…President Biden believes American taxpayers should pay to clean up the mess and rebuild the bridge. I think we have a foreign company to build bridges with!’” read three Facebook posts that shared the same graphic.
“Why are we responsible for paying for this!! Make it mean something!!” another Facebook post said.
Former Georgia House Speaker Newt Gingrich criticized Biden, writing: At the X post“Why add $1 billion to America’s debt when big insurance companies exist for this very purpose?”
The ship that hit the bridge was owned by Singapore-based company Grace Ocean Private Limited. It was managed by Singapore-based ship management company Synergy Marine Group and chartered by Danish shipping company Maersk.
Grace Ocean Private Limited and Synergy Marine Group filed a motion with the court on April 1 to limit their liability to approximately $43.6 million.
On March 28, the federal Department of Transportation announced $60 million in “quick-release” emergency relief funding for the Maryland Department of Transportation to begin rebuilding the bridge, describing it as “an initial down payment of funds.”
Maryland and federal officials said repairing the bridge and opening the Port of Baltimore to shipping is an economic imperative for Maryland and the United States.
State officials said the bridge carried more than 30,000 vehicles per day. In 2021, the Port of Baltimore was the 17th largest port in the United States by gross annual cargo tonnage, according to data from the U.S. Department of Transportation.
Maryland's Democratic Governor Wes Moore said on “Fox News Sunday” on March 31 that the bridge collapse is not just impacting Maryland's economy, but states across the country. He said he is giving.
The support Baltimore is receiving “is not because someone is trying to curry favor with Maryland,” Moore said. “Because the national economy depends on the Port of Baltimore operating.”
Where will the money come from and will the federal government pay for it entirely?
Just because the federal government steps up to pay for bridge reconstruction doesn't necessarily mean taxpayers will foot the entire bill.
On March 26, when reporters asked Biden whether the company that owned the ship should be held responsible, Biden replied, “That's a possibility, but if that happens, we'll wait.'' “We're not going to do that. We're going to pay to build a bridge.” It was rebuilt and opened. ”
Transportation Secretary Pete Buttigieg said at a press conference on March 27 that “private entities found to be responsible will be held accountable” for the bridge accident.
Analysts say insured losses, including bridge repairs and business interruption, could reach up to $4 billion. But lawsuits in similar disasters have taken years to resolve.
National Transportation Safety Board spokesman Peter Knudson said the investigation is expected to take one to two years.
Sen. Chris Van Hollen (D-Md.) said on ABC's “This Week with George Stephanopoulos” that “the federal government will pay 90% of the cost,” and introduced a bill to cover the remaining 10%. He said he plans to do so.
Treasury Secretary Janet Yellen said in an interview on MSNBC on March 27 that funds from the Bipartisan Infrastructure Act of 2021 could help pay for some costs, but that some of those costs would be covered by insurance. He said he expected it to be covered.
Buttigieg said on CBS' “Face the Nation” on March 31 that more money would be released than the original $60 million in emergency release funds, but that “we're not looking to Congress to supplement that funding.” “We may have to do that. We've done that in the past,” he said. ”
Although some Republicans in Congress have expressed opposition to paying for the repairs, Senate Minority Leader Mitch McConnell (R-Ky.) said in an April 1 radio interview that the federal government would not pay for the bridge. He said he would pay “the majority” of the replacement costs. .
Buttigieg pointed to bipartisan support for a $250 million reconstruction package in the wake of the 2007 collapse of Interstate 35 in Minnesota.
In August 2007, the bridge collapsed near downtown Minneapolis, destroying 111 vehicles, killing 13 people and injuring 145 others. The NTSB concluded that the likely cause was “inappropriate load carrying capacity due to a design error” on part of the bridge's structure.
It is estimated that the state will lose approximately $60 million in economic output in 2007 and 2008 due to the lack of the bridge, and Congress approved reconstruction funds three days after the bridge collapse. Two days later, former President George W. Bush signed it into law. The bridge was completed in 13 months.
URS, the engineering firm tasked with assessing the bridge before it collapsed, has agreed to pay $52.4 million to victims of the tragedy.
The federal government is making advance payments for similar disasters.
Steve Ellis, president of Taxpayers for Common Sense, an independent group that analyzes federal spending, said the federal government often steps in after disasters to pay for emergency response costs.
“In this case, if there are other insurance carriers, such as shipping companies, the federal government should go after them for reimbursement and penalties,” Ellis said.
Andy Winkler, director of infrastructure projects at the Bipartisan Policy Center, said the Biden administration's quick offer of aid for the Baltimore bridge collapse would prevent the federal government from recovering costs if the private sector is found to be responsible. He said it was not a thing.
Here are some examples where the federal government pays you up front and then asks you to reimburse it later.
Smoke billows from a fire at BP's Deepwater Horizon offshore oil rig in the Gulf of Mexico on April 21, 2010. (AP)
Deepwater Horizon and Exxon Valdez oil spills: Mr. Ellis and Mr. Winkler each cited the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, and Mr. Ellis said the federal government contributed to the initial costs and expected more through settlements with responsible companies. He also cited the 1989 Exxon Valdez oil spill in Alaska as an example of recovering funds. It took six years to reach a settlement in the Deepwater spill and two years in the Exxon spill.
The Deepwater spill, caused by an oil rig explosion that killed 11 people, was the largest offshore oil spill in U.S. history, releasing approximately 130 million gallons of crude oil into the ocean and staining the coastlines of five states. did. The federal government reached a $20.8 billion settlement with BP, the largest environmental settlement in U.S. history, approved by a federal judge in 2016.
“The federal government provided funding and other assistance to support cleanup efforts while aggressively pursuing compensation for any damages,” Winkler said.
Before Deepwater Horizon, the 1989 Exxon Valdez oil spill was the worst in U.S. history. An Exxon oil tanker crashes into a reef in Alaska's Prince William Sound, spilling 11 million gallons of crude oil into the ocean. The Environmental Protection Agency announced in 1991 that Exxon had agreed to pay $1 billion in fines and restitution. After the accident, Exxon announced that it had paid a total of $4.3 billion in compensation, cleanup fees, settlements, and fines.
A black plume rises over East Palestine, Ohio, on February 6, 2023, as a result of a controlled explosion on part of a derailed Norfolk Southern train. (AP)
East Palestine train derailment accident: In 2023, the state led the first emergency operation with federal and local support after a train derailed in East Palestine, Ohio.
Days later, the EPA ordered its operator, Norfolk Southern, to reimburse cleanup costs.
Norfolk Southern argued that the companies responsible for the destroyed tank cars and spilled chemicals should pay more than $1.1 billion in cleanup costs. But in March, a federal judge ruled that only Norfolk Southern should fund the cleanup.
The $1.1 billion figure reflects costs charged to Norfolk as a result of the derailment, as well as more than $104 million paid directly to residents and the East Palestine community, said Connor, a spokesperson for the city of Norfolk. Spielmaker told PolitiFact.
The EPA told PolitiFact in an April 1 email that it will send an invoice for all personnel, time and resources spent on Norfolk South.
Washington Expressway Bridge Collapses: In May 2013, in Washington State, the Skagit River Bridge on Interstate 5 in Mount Vernon, about halfway between Seattle and the Canadian border, collapsed when a wide-loaded 18-wheeler struck the bridge. A month later, the U.S. Department of Transportation's Federal Highway Administration released $15.6 million from its emergency fund for repairs, but asked the state for reimbursement, the Seattle Times reported.
According to the Seattle Times, the Washington Supreme Court ruled in 2019 that the two companies responsible for the crash, Mullen Trucking and Motorways Trucking, were responsible for paying $17 million in repairs on behalf of taxpayers. was lowered.
PolitiFact senior correspondent Amy Sherman and researcher Caryn Baird contributed to this article.
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