The Los Angeles Board of Harbor Commissioners has approved a $3.4 billion annual budget for Fiscal Year (FY) 2026/27 for the Port of Los Angeles. The financial blueprint calls for increased investments in Port operational and community public-access infrastructure, as well as support for a range of sustainability and technology programs.
The Port’s FY 2026/27 adopted budget is based on predictions of steady, yet slightly lower cargo demand of 9.3 million container units, 7% less than the current forecast for FY 2025/26. Continued volatility in global trade and uncertainty about trade policy are factors contributing to a more cautious cargo volume outlook for the coming year.
The $3.4 billion budget represents a 25% increase, or $665 million, over the Port’s FY 2025/26 adopted budget. The year-over-year increase is primarily due to a significant boost in the Port’s capital improvement spending program—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, as well as outside inflationary pressures.
The budget plan includes total operating revenues of $826 million, a 26% increase over the FY 2025/26 adopted budget. 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 projected to increase substantially over the next 12 months.
For the coming year, capital improvement spending will be the highest in more than a decade at $302 million. Projects will focus on container terminal modernization, enhancing public-access infrastructure and improving 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 2026. Construction is underway on the $74 million rail expansion at Berths 302-305 and $130 million SR 47/Vincent Thomas Bridge interchange reconfiguration.
“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.”
The Port of Los Angeles is North America’s leading trade gateway and has ranked as the No. 1 container port in the United States for 26 consecutive years. In 2025, the Port generated $301 billion in trade and handled a total of 10.2 million container units, sustaining its top rank among U.S. ports. The Port remains focused on community investment, commitment to sustainability and environmental leadership, workforce development, and infrastructure improvement. San Pedro Bay port complex operations and commerce facilitate one in nine jobs across the Southern California counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura.