RAMP logo

Realize America's Maritime Promise


Frequently Asked Questions

What is being proposed?

Through Legislation, to directly link Harbor Maintenance Trust Fund (HMTF) revenues to budget/spending, similar to the Highway and Aviation Trust Funds.

Why is this action needed?

Funds are being collected that need to be fully spent maintaining the navigation channels. Presently only 52% of the revenues generated are being spent on navigation project Operations and Maintenance (O&M), and navigation projects are not being dredged and industry dredges are sitting idle.

There have been concerns expressed that seeking legislation will open "Pandora's Box" and there will be entities seeking uses of the Fund not currently authorized. Is this a potential problem?

Whenever legislation is proposed, there is always a potential for an entity to seek additional language that may not be consistent with its original intent. However, in the case of the HMTF, there are already examples of proposals to use the tax monies generated by the HMTF for purposes not currently authorized. Thus, the timing of proposing legislative language at this time, that will ensure the tax monies are used for their original intent, is critical.

How much money are we talking about?

In FY08, $1.6B was received in payments and interest, yet only $766M was reimbursed for coastal navigation O&M work.

Why not reduce the tax?

It's not that we're collecting more than needed to maintain the navigation channels, it's that the revenues are not being spent to provide adequate channel availability.

What are the results of current funding levels?

Federal navigation projects are not being maintained to their authorized dimensions and industry dredges are sitting idle. The channel availability trend is bad and getting worse. The 59 busiest projects in the Nation had half their channel width available 38% of the time in FY05, 35% in FY06 and 32% of the time in FY07.

What are the impacts?

Projects were designed, constructed and should be maintained for optimum ship use. When channel use is restricted, ships must light load, experience delays and not achieve maximum benefits, which increases the transportation costs of US exports and imports.

Can the Corps execute this program?

Yes. Many projects have reduced the scope of dredging to match the funds available. In many instances the projects will return to maintaining full depth, width and justified advanced maintenance to improve channel availability.

Does the dredging industry have the capability to respond?

Yes. In the short term there is dredging equipment that has been idled from lack of work or that is operating in other areas that can be readily returned to service. With a reliable increased funding stream industry will respond with investments in new and more efficient equipment, something current funding levels have not supported.

How would the funds be spent?

While focused on maintenance dredging there are other aspects of navigation channel O&M - jetties, disposal site work and bridge repairs that are eligible for HMTF funding. A preliminary estimate is: ($ in Millions)

Are the HMTF funding revenues going to be consistently available?

The HMTF is an 'ad valorem' tax based on the value of the cargo being imported and domestically moved. This amount has seen steady growth, averaging 12.6% per year over the last 5 years.

Bottom line: Restore America's navigation infrastructure and restore TRUST in the Harbor Maintenance Trust Fund.