Maryland’s plan to rebuild the Francis Scott Key Bridge hit a major setback Tuesday, as state officials abruptly canceled a key construction contract, undercutting Gov. Wes Moore’s repeated claim that the project was the nation’s “fastest-moving” large infrastructure effort. The decision to off-ramp contractor Kiewit Infrastructure Co. from the project’s critical second phase came after its proposals “far exceeded” state estimates, according to U.S. Transportation Secretary Sean Duffy.
The move forces Maryland back into the market for a new builder at a pivotal moment, as project costs have surged from roughly $1.8 billion to more than $5.2 billion. It transforms what Moore has framed as a model of speed into a high-stakes test of the administration’s ability to manage one of the most expensive and politically scrutinized infrastructure projects in the country.
In a major joint announcement through separate releases on Tuesday by the U.S. Department of Transportation (USDOT) and the Maryland Transportation Authority (MDTA), the State of Maryland has canceled its contract with the Key Bridge’s construction contractor, Kiewit Infrastructure Co., for Phase 2 of the project.
Phase 2 of the project focused on finalizing the new Key Bridge’s design, driving steel piles into the Patapsco River, and beginning construction of the roadway approaches and spans. This phase also granted Kiewit exclusive rights and transitioned from preliminary plans to a guaranteed maximum price for construction.
MDTA said in its release that it is “off-ramping” Kiewit, forcing the state back into the market to find a new contractor for the most critical phase of work. This decision comes after negotiations over cost failed, with Duffy pointing out that Kiewit’s proposals “far exceeded” independent state estimates.
Maryland transportation leaders framed the move on Tuesday as a necessary step to protect taxpayers and keep the project on track. Maryland Transportation Secretary Katie Thompson said in MDTA’s announcement that safety, speed and cost efficiency remain top priorities. “At the governor’s direction, MDTA will aggressively protect and advance the interests of Maryland,” Thomson said.
In a statement on Tuesday, Moore said that since the beginning, he has “been unequivocal: we will rebuild this bridge safely, quickly, and cost-effectively. And we will never settle for less.” “As we prepare to enter Phase 2 of construction, our team approached negotiations with our contractor with clear eyes and firm imperatives,” Moore said in his statement. “But after weeks of engagement, it became evident that the contractor’s proposed price and timeline for moving forward was unreasonably high and therefore unacceptable.” “This was informed by the state’s independent cost estimates,” Moore added.
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In a separate federal announcement, U.S. Transportation Secretary Sean Duffy painted a starkly different picture: a project plagued by ballooning costs, delays, and the need for aggressive federal oversight. Duffy also claimed victory in delivering on his promise of vigorous oversight of the costs to rebuild the Key Bridge. “The Trump Administration is always working to secure the best possible team for hardworking American taxpayers,” said Duffy in the release. “It’s my job to ensure the American people’s tax dollars are used efficiently and that major projects are completed on time and on budget.”
Late and over budget in Baltimore? Whoda thunk?

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