Gov. Gavin Newsom has struck a partnership with the U.S. Department of Transportation to finance infrastructure projects in and around ports through $5 billion in loans. The goal is to ease the movement of goods between major warehousing districts and the docks.

According to the governor’s office, the agreement will expedite an array of construction projects. This includes upgrading ports, expanding freight capacity, upgrading highways and developing inland ports. Funding would come mainly from the federal infrastructure package. The state budget includes $250 million for ports, $280 million for infrastructure related to the Port of Oakland, and $1.3 billion over three years for zero-emission trucks and other vehicles.

“Having our federal and state transportation agencies working in unison to help fund infrastructure is exactly what we need,” said Port of Los Angeles Executive Director Gene Seroka.

CDFA Secretary Karen Ross has advocated for developing an inland port in Merced County that could focus on transferring loads to ease pressure on the Port of Oakland.

The announcement does not address calls from farm groups for easing environmental and labor regulations to deliver short-term relief.