October 2, 2024

Program to Lend Billions to Aid California’s Supply-Chain Infrastructure

“Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure,” Pete Buttigieg, the transportation secretary, said in a statement. “Today’s announcement marks an innovative partnership with California that will help modernize our infrastructure, confront climate change, speed the movement of goods and grow our economy.”

The announcement comes as President Biden and lawmakers try to push through Congress their own major infrastructure plan, which includes money for ports and other transportation initiatives. Progressive lawmakers in the House have resisted throwing their support behind the bipartisan infrastructure bill as leverage while negotiations continue over a separate $1.85 trillion economic and environmental bill.

David S. Kim, the secretary of the California State Transportation Agency, said it was the first time California had worked with the federal government to issue loans for infrastructure projects on such a broad scale.

“Our supply-chain infrastructure is outdated,” Mr. Kim said. “Now’s the time to modernize it and prepare our system for what will be huge growth and huge demand for years to come.”

The partnership comes after Gov. Gavin Newsom of California signed an executive order last week directing state agencies to identify longer-term solutions to alleviate congestion at California ports, which he said were “key” to the country’s supply chain. Mr. Newsom said the new agreement would help accelerate upgrades to the state’s infrastructure system.

Article source: https://www.nytimes.com/2021/10/28/us/politics/california-ports-supply-chain.html

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