A leaked memo from the U.S. Department of Transportation (DOT) reveals that up to $51 billion in federal transportation funds could be at risk of being defunded, according to an analysis by Transportation for America, a prominent transportation advocacy group. The funds, which have been awarded but not yet obligated, are now under review, potentially jeopardizing critical infrastructure projects.

Rural and Midwestern States at Risk

The advocacy group’s March 14 analysis indicates that rural and Midwestern states could be hit hardest by the potential defunding, particularly for projects related to road safety, electric vehicle infrastructure, and transportation resilience to climate change. The leaked DOT policy memo, originating from the Office of the Assistant Secretary for Transportation Policy, directs agency heads to scrutinize awards that lack full grant agreements or have only been partially obligated.

Presidential Orders and Changes in Direction

The memo points to recent presidential executive orders and earlier directives issued by Transportation Secretary Sean Duffy, which emphasize the need to identify and remove any regulations or funding agreements connected to climate change, racial equity, and environmental justice. These areas have been integral to several transportation-related projects under previous administrations.

On March 10, Secretary Duffy announced the rescission of two Biden-era memoranda aimed at improving road safety, increasing accessibility for people with disabilities, and promoting renewable energy, including electric vehicle charging infrastructure. This new DOT policy memo also places a significant focus on the review of bicycle infrastructure projects, which could be among the initiatives affected by the funding cuts.

The Potential Impact on Key Transportation Programs

The group pointed out specific programs that could face defunding. One such program is the Safe Streets and Roads for All grant initiative, where just $515 million has been obligated across 979 grants, leaving nearly $2.4 billion in jeopardy. Another example is the RAISE/BUILD program, which has seen a significant portion of its allocated funds left unsecured. With $7.6 billion announced under the program for surface transportation infrastructure projects from 2022 to 2025, only about $1.25 billion has been fully obligated.

Expansion of the Review Could Lead to More Cuts

While the memo currently applies only to competitive grants, Transportation for America cautioned that this could be the beginning of a broader review that might target other programs as well. The group anticipates that the administration may expand the scrutiny to include other funding mechanisms for states, regions, localities, and transit agencies, especially if they disagree with how funds are being allocated or used.

“This administration is setting the precedent that any project not underway can be undone when there is a new president,” the group said in an online post. They emphasized that this approach could create significant uncertainty for state and local governments that rely on federal funding to improve infrastructure and ensure public safety.

Broader Implications for Infrastructure Development

The potential defunding of transportation projects has far-reaching implications, not only for road safety and climate resilience but also for the continued development of sustainable and accessible transportation systems. With projects like the expansion of electric vehicle infrastructure and climate-adaptive transportation systems under review, advocates warn that the nation’s progress on modernizing its infrastructure could be at risk.

The timing of the review also coincides with growing concerns about the environmental impact of transportation systems. The Biden administration had pushed forward a broader vision for infrastructure that included sustainability measures aimed at reducing emissions and promoting clean energy solutions. The new memo signals a shift away from these priorities, raising questions about the future direction of U.S. transportation policy.

A Growing Debate Over Federal Infrastructure Funding

The ongoing debate over the direction of federal transportation funding reflects larger political and ideological divides, particularly when it comes to climate change, equity, and sustainability. While some see these projects as critical to addressing long-term challenges such as climate resilience and environmental justice, others argue that the funds should be redirected or used differently to focus on traditional infrastructure needs like road maintenance and safety.

In the coming months, the future of these transportation funds will likely remain a focal point in discussions about federal infrastructure investment and its role in shaping the country’s transportation network for years to come. Whether or not these funds are ultimately withdrawn, the issue highlights the tensions between ambitious, forward-thinking projects and the priorities of a new administration.

As Transportation for America points out, the current situation reflects the broader uncertainty surrounding federal transportation funding. With up to $51 billion in grants at risk, many transportation projects across the country could face delays, cancellations, or reallocation of funds. These developments are poised to significantly impact ongoing and future infrastructure projects, especially those focused on road safety, electric vehicle infrastructure, and climate resilience.

Originally reported by Dan Zukowski in Construction Dive.