Mrvan asks U.S. transportation secretary to rethink Citgo grant cut

Rep. Frank Mrvan, D-Highland, said economic opportunities and future sustainability for Northwest Indiana shouldn’t be “sacrificed for shortsighted political purposes.”

Mrvan wrote in a letter to U.S. Department of Transportation Secretary Sean Duffy that he’s concerned about the rescission of federal funding for a Citgo terminal in East Chicago, according to a Friday news release.

“The Trump administration’s decision to rescind this federal investment jeopardizes millions of dollars in private sector commitments and threatens the loss of good-paying union jobs in Northwest Indiana,” Mrvan said in a Friday news release. “This reckless action also undermines efforts to establish a sustainable aviation fuel blending hub in East Chicago, a project that would reduce harmful emissions, strengthen domestic manufacturing, and open new markets for American workers and businesses.”

Mrvan encouraged Duffy to rethink the rescission. The U.S. Department of Transportation did not immediately respond to a request for comment Monday.

In September 2024, Mrvan announced that the East Chicago terminal would receive more than $18 million through the FAST program, according to Post-Tribune archives. Funding for Citgo’s East Chicago terminal was funded through the Federal Aviation Administration’s Fueling Aviation’s Sustainable Transition grant program. The Inflation Reduction Act of 2022 established the FAST grant program, which former President Joe Biden signed into law and Mrvan supported.

The FAA awarded about $291 million to 36 projects in 22 states through the grant program, according to Mrvan’s letter.

“The infrastructure proposed for construction under these awarded projects aimed to put to work our building and construction trades at the onset, then support the capacity for new jobs and develop supply chain partnerships upon completion, thereby increasing the competitiveness and efficiencies within the commercial aviation and aerospace industry,” Mrvan said in his letter.

The money would help enable delivery, unloading, blending and use of up to 42,000 gallons per day of sustainable aviation fuel, according to Post-Tribune archives. The project would also “facilitate cost-effective SAF blending and rail logistics services at the Citgo East Chicago terminal with the end result to produce lower-carbon aviation fuels that will reduce emissions.”

The Citgo terminal would be added to the existing jet fuel distribution hub and help move fuel to O’Hare, Midway, Rockford and Milwaukee airports, Mrvan said.

“As we work to create opportunities for employment and wealth throughout our nation, the disinvestment in America’s aviation supply chains and within the commercial aviation and aerospace industry is counterproductive to the efforts to invest in America, particularly in manufacturing, technology and infrastructure,” Mrvan said in his letter. “I respectfully ask for your insight as to the rescinding of FAST grant program awards and ask for similar future funding opportunities that DOT may offer.”