The Los Angeles harbor commission recently adopted $3.4 billion budget for the Port of L.A. for the 2026-27 fiscal year — with spending on capital improvement projects, in particular, the highest its been in a decade.
The CIP budget for the next fiscal year, which will begin on July 1, is $302 million, with the leading categories for increased investment including operational and community public-access infrastructure, along with technology programs.
The new budget, which the harbor commission approved last week, represents a 25% increase, or $665 million, over the port’s fiscal year 2025-26 adopted budget.
The year-over-year increase is primarily because of “a significant boost in the port’s capital improvement spending program, officials said in a written statement — up 31% over the previous fiscal year.
It also reflects subsidy increases in the port’s Clean Truck Fund Rate, cost-of-living increases across staff salary and benefits, and outside inflationary pressures, officials said.
Among projects impacting spending are container terminal modernization, public-access infrastructure enhancements, and improvements for transportation in and out of the port.
Signature projects include the $154 million Avalon Pedestrian Bridge and Promenade Gateway project, which kicked off construction in March and is part of the long-planned waterfront redevelopment project in Wilmington.
Construction is also underway on a $74 million rail expansion at Berths 302-305 and the much-anticipated $130 million Vincent Thomas Bridge interchange reconfiguration that’s still in progress.
The port’s 2026-27 budget, which the harbor commission approved on June 11, is based on predictions of steady, yet slightly lower, cargo demand of 9.3 million container units, 7% less than the current forecast for fiscal year 2025-26, port officials said. Continued volatility in global trade and uncertainty about trade policy are factors contributing to a more cautious cargo volume outlook for the coming year, officials said.
“This budget reflects a disciplined and forward-looking plan that positions the port to navigate uncertainty while continuing to invest in priorities that matter most,” said Los Angeles harbor commission President Lucille Roybal-Allard. “By carefully balancing revenues and expenses, we’re ensuring that we can stay focused, execute on our strategic priorities, and continue advancing key initiatives in the year ahead.”
Shipping services will make up the bulk of expected operating revenues at 65%, while operating expenses are projected to be up by roughly 6% — at $452 million — as spending for Clean Truck Fund Rate subsidies are anticipated to increase substantially over the next 12 months.
“Over the last decade, we’ve built a strong financial foundation that allows us to continue investing in the projects, programs and people that keep cargo moving efficiently,” said Port of Los Angeles Executive Director Gene Seroka. “This budget advances infrastructure modernization, sustainability initiatives, community programs and technology deployment, while creating opportunities for port employees, workforce development and the broader community through the port’s training campus. Together, these efforts enhance our competitiveness and prepare the port for the future.”