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.

Maryland claims value incentive, Feds declare victory for the public and taxpayer

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-efficiently. 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," said Moore 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.

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.”

“We’re putting taxpayers and their priorities first,” Duffy added.

In an exclusive interview on Monday with Spotlight on Maryland after Southwest Airlines’ celebration of America’s 250th anniversary, Duffy said the Key Bridge is “a bridge we want to build was asked about Moore’s claims that the Key Bridge rebuild is the nation’s fastest-moving project.

“I’ve worked with the governor. Our teams are navigating the Francis Scott Key Bridge together.

A spokesperson for USDOT referred Spotlight on Maryland back to its news release on Tuesday when asked for additional comment.

In September, Spotlight on Maryland was the first to report that Duffy sent a letter to Moore emphasizing the Trump Administration’s commitment to oversight of all the federal dollars funding the replacement of the Key Bridge. Duffy’s letter also made it clear that he had major concerns over escalating costs, ultimately questioning the project’s budget and timeline.

In an exclusive interview with Spotlight on Maryland in October at Baltimore/Washington Thurgood Marshall Airport, Duffy doubled down on his criticism of the project’s management, slamming Maryland’s approach to diversity hiring, particularly regarding race- and sex-based contractor selection. Duffy’s concerns echoed a continued broader national debate over Diversity, Equity, and Inclusion (DEI) requirements in public projects.

“I don’t think he [Moore] has been a good steward with the money, but also, we have sent a letter to all of our partners saying they have to follow the law,” said Duffy in October. “A long time ago, we got rid of contracting based on race and sex.”

Kiewit listed in the informational section of its website for the bridge rebuild that it is “committed to meeting” the Disadvantaged Business Enterprise (DBE) goals set by Maryland for the project. The DBE goals that Moore established through executive order have set a 31.5% goal for contracts to be awarded to women-owned and minority businesses, soon after taking office in February 2023.

What happens next

MDTA said in its release that it insists that work on the Key Bridge rebuild will not stop. Phase 1 construction activities remain underway, and the agency plans to host an industry forum in May to being the process of selecting a new contractor.

Still, rebidding a project of this scale is no small task. It requires reengaging the private sector, negotiating new terms, and potentially reviewing timelines while all attempting to maintain public confidence and federal support.

Duffy told Spotlight on Maryland on Monday that he is looking to ensure the Key Bridge is built “on time and under budget.” He said it is critical for the state to properly manage its contracts.

“We stretch out dollar as far as possible – we’re not in the business of giving money away,” Duffy said. “We’re in the business of giving a fair dollar for the fair services provided, and the governor has said he is going to do that.”

Moore originally promised Marylanders the Key Bridge would be completed by 2028, prior to the most recent significant hurdle.

It is not immediately clear if Kiewit will file a lawsuit against the State of Maryland or the Moore administration for the contract cancellation. The contractor did not immediately respond on Tuesday to Spotlight on Maryland’s request for comment.