Dive Brief:
- Up to $51 billion in federal funds that have been awarded by the U.S. Department of Transportation but not yet obligated could be defunded, according to a March 14 analysis by Transportation for America, a transportation advocacy organization.
- Rural and Midwestern states may lose the most funds on a per-person basis, especially for projects related to road safety, electric vehicle infrastructure and transportation climate resilience.
- The organization analyzed a leaked policy memo from the DOT’s Office of the Assistant Secretary for Transportation Policy directing agency heads to review all awards lacking grant agreements and partially obligated grant agreements.
Dive Insight:
The memo cites presidential executive orders and a previous order and memorandum by Transportation Secretary Sean Duffy that orders agency administrators to identify and eliminate rules, regulations and funding agreements that include or reference climate change, racial equity or environmental justice among other criteria.
On March 10, Duffy announced in a press release the rescission of two Biden-era memoranda. These included policies aimed at improving road safety, making streets and transportation infrastructure accessible to those with disabilities, and fostering renewable energy and electric vehicle charging stations. The latest DOT policy memo targets bicycle infrastructure as well.
“While it is normal for a new administration to set its own agenda, it has always applied to spending and policy going forward,” Transportation for America said in an online post. “This administration is setting the precedent that any project not underway can be undone when there is a new president.”
Examples of programs that could be impacted include the Safe Streets and Roads for All grant program: just $515 million has been obligated across 979 grants, leaving nearly $2.4 billion at risk. Of the $7.6 billion announced under the RAISE/BUILD program, which provides grants for surface transportation infrastructure projects for fiscal years 2022 through 2025, only $1.25 billion or less has been secured and obligated, according to Transportation for America.
The organization also warns of potential further action, noting that the current memo only applies to competitive grants. “There is good reason to expect that this administration will expand this review to cover other programs, too, if they find they don’t agree with how states, regions, localities, and transit agencies are using the funds,” the post states.
