$705 Million Announced for Disaster-Damaged Infrastructure
February 12, 2019
The Federal Highway Administration (FHA) said this week that it will provide $750 million in emergency relief funds to 34 states and three territories following a spate of natural disasters. FHA has earmarked $153 million for fixing infrastructure damaged in 2017 by Hurricanes Harvey, Irma, and Maria in and around the Gulf of Mexico, with additional emergency funds for Puerto Rico and the U.S. Virgin Islands. Infrastructure projects, including repairs, are a significant source of demand for lubricants.
Emergency relief funds reimburse states for transportation infrastructure repair costs from the emergency situations. Although hurricane and flooding damage makes up the majority of bridge and road repairs, funding for disasters such as the 2017 Oroville Dam emergency in California and the explosive eruption of Kilauea in 2018, will receive a share of the $750 million.
FHA’s release of the funds arrives at a good time for many states, as the 2019 Atlantic hurricane season is about four months away. The Trump administration has not commented on the $16 billion in disaster aid sought by Congress, designed to provide both infrastructure repairs and damage mitigation resulting from California’s 2018 wildfires and other disasters.
Disaster bills have been passed in Congress twice, once in December and again last month, but are currently being debated as part of the negotiations to avoid another government shutdown. As a result, additional infrastructure construction projects are likely on the way, pending a funding bill and President Trump signing it into law.