Moore to tap state reserves in $25M increments to buoy Port of Baltimore economy

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ANNAPOLIS — Under a bill he signed Tuesday, Gov. Wes Moore will have access to up to $275 million in state reserves to temporarily buoy businesses and individuals whose work relies on regular cargo shipping in and out of the Port of Baltimore‘s main channel.

The governor isn’t expected to hit the $275 million cap, and the legislature has limited to $25 million the amount that he can withdraw at a time from the state’s rainy day funds. Moore will also have to provide notice to legislative leaders before doing so.

It’s not clear exactly how much the state may pay businesses and workers, though an executive order from the governor has allocated $60 million from state reserves and various departmental budgets for assistance to businesses and individuals at the port.

State officials are hoping to bolster the local port economy by providing grants and income replacement to businesses and eligible port workers, small businesses, trade associations and contractors losing revenue in the wake of the collapsed Francis Scott Key Bridge and nearly 1,000-foot Dali cargo ship that brought it down, blocking ship traffic in and out of the Patapsco River.

Baltimore’s Key Bridge destroyed: Everything you need to know

“The legislation will empower our administration to stay nimble in our response (to) the collapse,” Moore said Tuesday before signing the bill. “Even though session is now over, it does not mean that Maryland’s response will cease.”

Maryland’s 90-day legislative session ended Monday, and assistance for port workers and businesses was the first bill the governor enacted.

It’s not yet clear exactly how many employees or employers may be eligible for the temporary relief payments.

Without regular cargo shipping for two weeks now, many of the tens of thousands of people whose jobs rely directly on the port have been out of work.

The Maryland Department of Labor will process applications for individual income assistance, while the state Department of Commerce will handle relief for small businesses, trade associations and contractors to ensure they can retain their workers at the same hours, pay rate and benefits plans, and resume regular operations once the port reopens.

Roughly 150 businesses were expected to eventually receive grant funding, according to an early estimate from the Department of Commerce on Tuesday.

The department is expected to grant businesses up to $100,000 for operations hurt directly by the port disruptions and up to $200,000 to help businesses retain employees.

Through the Department of Labor, the state is expected to provide income replacement for workers not eligible for unemployment insurance benefits, including truck drivers and independently contracted warehouse workers. The recent bill also expands eligibility to unemployment insurance to compensate port workers not actively searching for another job.

Lawmakers expect that the federal government will repay the state for the income replacement programs, though reimbursements will depend on congressional approval.

Before signing bills Tuesday, Moore joined the Maryland congressional delegation and state and federal transportation officials in lobbying for Congress to cover the full cost of clearing the Patapsco River and rebuilding the Key Bridge.

The state has also established a scholarship program for the surviving children of construction workers killed in work incidents.

Of the eight men doing routine road work on the bridge when it collapsed, two are confirmed dead and four remain missing and are presumed dead. Emergency responders rescued two of the workers after the bridge collapsed.

The scholarships will also go to families of the six construction workers killed last year after an out-of-control sedan traveling on Interstate 695 entered an active construction zone.