New Articles

Keeping the Maritime Security Program Funded Should be a No Brainer

MSP carriers shipments of export cargo and import cargo in international trade for the Department of Defense.

Keeping the Maritime Security Program Funded Should be a No Brainer

These days, there’s nothing shocking about partisan hostility hindering Congress. It’s practically become the new norm.

But when lawmakers are able to set aside their differences and work together, great things can happen. The Maritime Security Program (MSP) is a perfect example of this.

For more than 20 years, the MSP has seen strong support from both Republicans and Democrats — and for good reason. The program is critical to ensuring military readiness and national security, and transportation labor is dedicated to making sure it stays that way.

Under the MSP, the federal government provides a retainer payment to privately-owned, militarily-capable U.S. flag ships to carry cargo on behalf of the Department of Defense (DOD) during times of war and national emergency. In addition to supporting the most advanced military in the world, the MSP also helps sustain good, middle-class jobs. The 60 vessels in the MSP program currently support nearly 7,700 U.S. mariner and shoreside jobs.

For as long as the program has existed, the MSP has worked — and worked well. Without it, the DOD would be forced to rely on foreign flag ships, which may not have the loyalty, readiness, or capability to meet the DOD’s needs. What’s more, independent analysts and the Department of Defense have found that replicating a comparable program would cost taxpayers $63 billion.

The key to the program’s success — in addition to strong bipartisan support — is adequate funding. In recent years, costs associated with the shipping industry have gone up, but the stipend payment made to the MSP participants has remained flat — until last year. Congress recognized the problem and had the foresight to increase money for the program for fiscal years 2016 and 2017.

That should be the end of the story, but when the president released his budget in February, only $186 million was allocated for MSP. That’s well below the FY 2016 increase to $214 million and the FY 2017 increase to $299 million Congress outlined in its budget. This slight was not intentional, however. Congress passed its budget at the very end of 2015, and the White House was not able to adjust accordingly to the increased financial commitments.

This all comes down to Business 101. If the incentive for private ship owners to participate in the program is erased, ships have no reason to stay enrolled in the MSP. If ships pull out, not only would our national security and militarily readiness suffer, but the U.S.-flag shipping industry and the thousands of men and women who rely on it for steady employment would also take a significant hit.

We can’t let this happen. The MSP is a model federal program that, for years, has efficiently leveraged taxpayer dollars to help meet the needs of our military, while simultaneously sustaining a vibrant U.S.-flag shipping industry. That’s why the executive committee of the Transportation Trades Department of the AFL-CIO adopted a resolution asking lawmakers to follow a simple fix that would remedy the problem: The House and Senate Budget Committees must ensure the allocated amount for the MSP follows what Congress has authorized. That figure must also be included in the FY ’17 Housing and Urban Development and Related Agencies Appropriations Bill.

The strong, bipartisan support the MSP has enjoyed throughout its existence is nothing to scoff at, and neither are the vital services the program provides. It is now up to Congress to ensure that this program has the funding it needs to remain effective and efficient well into the future.

Ed Wytkind is president of the Transportation Trades Department of the AFL-CIO.

Investing in infrastructure provides economic benefits, including the facilitation of shipments of export cargo and shipments of import cargo and improved logistics and supply chains.

Lifting More Americans Into the Middle Class by Modernizing our Transportation System

There is a smart strategy that can boost our economy and help rebuild the middle class: investing in our failing infrastructure and transportation systems.

Years of neglect and Congressional inaction have left our country with transit and passenger rail systems, airports and an air traffic control system, highways and bridges, ports and maritime networks that are in desperate need of repair, expansion and modernization. Failure to invest in these projects has also resulted in missed opportunities to create millions of long-term, good paying jobs.

A study from the Duke Center on Globalization, Governance & Competitiveness shows that underinvestment in transportation costs our country more than 900,000 jobs each year and makes the United States less competitive than 15 of our major trading partners.

Improvements to our transportation systems will cement America’s status as an economic powerhouse in this century and create good, steady jobs for our country’s unemployed and underemployed workers, which together total nearly 15 million people. For every $1 billion invested in transportation infrastructure, more than 21,000 jobs are created across multiple sectors of the economy, including operations, maintenance, construction and design. When components needed to build transportation projects, including steel, rail cars, and buses, are manufactured in the United States, the economic ripple effect becomes even greater.

Funding these projects does more than just put people back to work. Investments in transportation create wealth across the entire economy—from the small farmer whose livelihood depends on efficient transportation to employers of all sizes that need a reliable freight network and safe and affordable commuter options for their employees, to carless millennials who rely on public transportation. Because every dollar invested in these projects returns $3.54 in economic impact, entire communities are able to enjoy the bounty from these investments.

The economic growth transportation investments fuel improves quality of life for millions and helps private businesses thrive. That’s why transportation has traditionally played a key role in spurring economic activity and building a strong middle class.

Some of the greatest periods of economic growth and job creation our country has seen were aided by the historic—and yes, massive—investments in grand and modern infrastructure, from the transcontinental railroad to our complex ground, air, and water transportation networks. Few dispute the fact that the growth and eventual dominance of America’s economy were synonymous with bipartisan decisions by elected leaders in the last century to build out a transportation system reflective of the ambitions of a nation ready to lead the global economy.

It is time for that mentality to once again take hold. Given the dilapidated state of our transportation system and historically low interest rates that reduce borrowing costs for these projects, there is no better time than the present to use transportation investments as drivers in an economy that needs better direction.

 

 

Ed Wytkind is president of the Transportation Trades Department of the AFL-CIO.