The Transportation Department said it would approve millions toward port infrastructure, but only if environmental, social, and corporate governance (ESG) policies are implemented.
In a Wednesday news release, the department said its Maritime Administration would make more than $662 million in funding available for the Port Infrastructure Development Program to modernize and strengthen U.S. supply chains.
"America's ports play a central role in our supply chains," Transportation Secretary Pete Buttigieg stated. "With today's announcement, we are helping make our ports safer, more efficient, and more reliable — strengthening supply chains, reducing costs for the American people, and positioning us for economic success."
But hidden beneath the details are climate change and ESG considerations, a closer examination revealed.
Grants will be awarded only to ports aligned with President Joe Biden's executive orders on "Advancing Racial Equity and Support for Underserved Communities Through the Federal Government" and "Tackling the Climate Crisis at Home and Abroad."
Buttigieg's Justice40 initiative, seeking to "address gaps" by pulling for disadvantaged communities to receive at least 40% of current and future DOT grant benefits, will also be a deciding factor.
Maritime Administration officials "will consider the extent to which projects advance equity and Justice40 to promote fairness and opportunity and may prioritize those projects that receive higher ratings under this selection consideration," the official notice read.
The move comes amid criticism of the Biden administration for instituting a new rule in November that permits retirement plan fiduciaries to weigh ESG factors when selecting investments and exercising shareholder rights.
Democrat Sen. Joe Manchin of West Virginia teamed up with Republican Sens. Shelley Moore Capito of West Virginia and Mike Braun of Indiana last week in pushing legislation forward that would undo that new policy.
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