What we can VERIFY about who’s going to pay for the Francis Scott Key Bridge

A cargo ship rammed into the Francis Scott Key Bridge in Baltimore, Maryland, on Tuesday, March 26, causing the bridge to collapse. 

At least eight people fell into the water when the bridge collapsed and two were rescued. Two people were found dead on Wednesday, March 27, and four other people who remained missing were presumed dead. 

Shortly after the collapse, President Joe Biden said he expects the federal government to pick up the entire rebuilding cost. That led several VERIFY readers to ask our team questions about whether taxpayers will foot the bill to rebuild the bridge. 

Here’s what we can VERIFY right now. 

THE SOURCES

• U.S. Department of Transportation’s Federal Highway Administration (FHWA)
• Transcript of briefing with Transportation Secretary Pete Buttigieg on March 27
• Transcript of briefing with President Biden on March 26
• Minnesota Legislature
• International Group of P&I Clubs
• Reinsurance News
• Treasury Secretary Janet Yellen interview with MSNBC on March 27

WHAT WE FOUND

1. The Biden administration has already approved federal funding to rebuild the bridge.

The Biden administration has already approved $60 million in federal funding to rebuild the Francis Scott Key Bridge after the collapse. 

In a press release on Thursday, March 28, the U.S. Department of Transportation’s Federal Highway Administration (FHWA) described the federal aid as “quick release Emergency Relief (ER) funds.” 

“These funds serve as a down payment toward initial costs, and additional Emergency Relief program funding will be made available as work continues,” the FHWA said. 

The bipartisan infrastructure law enacted in 2021 authorized “funding into the emergency relief account,” Transportation Secretary Pete Buttigieg said during a briefing on Wednesday, March 27.

That account had about $950 million in it at last check, but also has “a long line of needs and projects behind that,” Buttigieg said. 

More from VERIFY: No, captain of cargo ship involved in Baltimore bridge collapse is not Ukrainian

2. Congress will likely need to approve more funding for rebuilding the bridge. 

Since the emergency relief account has a limited amount of money in it, Congress will likely need to approve supplemental funding for rebuilding the bridge.

“So, it is certainly possible — I would go so far as to say likely — that we may be turning to Congress in order to help top up those funds. But that shouldn’t be a barrier to the immediate next few days beginning to get the ball rolling,” Buttigieg said during the March 27 briefing. 

This wouldn’t be the first time Congress authorized federal funding to rebuild a collapsed bridge. In August 2007, the U.S. House of Representatives and Senate quickly voted to approve $250 million to rebuild the Interstate 35W bridge near downtown Minneapolis after it collapsed during rush hour traffic.

Buttigieg said it was “too soon to say” how much money the Biden administration would need to request from Congress, though some experts have estimated the bridge alone could be worth more than $1.2 billion.

Biden also called on Congress to support his administration’s efforts to rebuild the bridge. 

“It’s my intention that [the] federal government will pay for the entire cost of reconstructing that bridge, and I expect to – the Congress to support my effort,” he said during a briefing on March 26. 

More from VERIFY: No, this video doesn’t show an ‘alternate angle’ of Francis Scott Key Bridge collapse

3. Insurance payments are expected to cover at least some of the costs.

Insurance companies are also expected to cover at least some of the costs of rebuilding the bridge.

The Britannia Protection and Indemnity (P&I) Club insures the cargo ship Dali that hit the Francis Scott Key Bridge, the Associated Press reported. 

Britannia is also one of a dozen insurance member clubs that make up the International Group of P&I Clubs, an association that provides marine liability coverage for about 90% of the world’s ocean freight. 

When P&I insurance is provided by clubs, those club members put money toward a pool of funds that can be used to cover catastrophic claims. The idea is to share the risk associated with major disasters so individual companies don’t have to bear it alone, the AP says. 

These insurance companies may also have insurance of their own, which is called “reinsurance.” Ratings agency AM Best said reinsurance companies will “bear the bulk of the insured cost” of the collapsed bridge, Reinsurance News reported. 

Federal officials have also said they expect insurance companies to help foot the bill for rebuilding the bridge. 

“My expectation would be that, ultimately, there’ll be insurance payments in part to cover this. But we don’t want to allow worrying about where the financing is coming to hold up reconstruction,” Treasury Secretary Janet Yellen said in an interview with MSNBC on Wednesday, March 27.

In response to a reporter’s question about whether the Biden administration would “go after” the company that manages the Dali, Buttigieg said that “any private party that is found responsible and liable will be held accountable.”

“I think our emphasis and the president’s goal is to make sure that the process is not something we have to wait for in order to support Maryland with the funds that they need,” he added. 

The Associated Press contributed to this report.