Calif. Gov.’s Budget Proposal Includes $2.3B to Address Supply Chain Congestion

Gov. Gavin Newsom
Gov. Gavin Newsom
Flanked by federal, state, local and union officials, Gov. Gavin Newsom speaks on Wednesday, Nov. 17, at Total Terminals International at the Port of Long Beach during a press conference on port congestion. File photo via POLB.

California Gov. Gavin Newsom is proposing that $2.3 billion be set aside in the state’s budget to address supply chain congestion brought on by a record cargo surge.

That investment would include $1.2 billion toward port, freight and goods movement-related infrastructure projects such as rail yard expansions and new bridges and $1.1 billion toward paying for supply chain-related items such as workforce training and zero emissions equipment, according to the announcement.

Port officials, including California Association of Port Authorities President and Port of Oakland Executive Director Danny Wan, applauded Newsom’s support.

“Our state’s ports can play a critical role in fixing America’s broken supply chain,” Wan said. “We must take a holistic approach that incorporates a reinvestment in infrastructure, technology and data-driven methods that will help get goods moving. This budget proposal reflects a historic commitment to California’s ports.”

The state’s supply chain challenges require both near-term and long-term solutions, Port of Los Angeles Executive Director Gene Seroka said.

“These funds, together with our own dollars, private investment and new federal port investment in the Infrastructure Investment and Jobs Act, will prove to be a powerful combination that accelerates delivery of critically needed projects like a first-of-its-kind goods movement workforce training campus, cargo support facilities, digitalization enhancements, and zero-emission equipment and charging infrastructure,” Seroka added.

By Karen Robes Meeks