Federal Labor Dispute Delays Panther Island Flood Control Project Until 2026

A major infrastructure project in Fort Worth—the $1.16 billion Central City flood control initiative—is experiencing further delays as federal agencies navigate labor policy disputes. Construction on the project’s centerpiece, a 1.5-mile bypass channel rerouting the Trinity River, will not begin until spring 2026, nearly a year later than originally scheduled.

During a June 17 board meeting of the Tarrant Regional Water District, Kate Beck, the district’s program director, explained that the U.S. Army Corps of Engineers, which is overseeing the design and construction of the bypass, is currently soliciting proposals from construction firms, with bidding open through early fall 2025.

While the design phase is complete, the construction process is being delayed due to an ongoing labor dispute involving federal project labor agreements (PLAs).

“We know there’s a lot of interest based on pre-bid activities from major construction firms,” Beck said.

The Corps had planned to award the contract during the week of June 16, but paused the process after the U.S. Department of Defense began reviewing which military construction projects must comply with PLAs—agreements that require the federal government to contract only with unionized construction firms.

The delay stems from a legal challenge launched in April by North America’s Building Trades Unions, which temporarily restored PLA requirements after Defense Secretary Pete Hegseth attempted to remove them from federal contracts exceeding $35 million.

Because the Panther Island project far exceeds that threshold, the Corps is now re-evaluating its contractor selection process. According to Beck, the review will resume two months from now, pushing the groundbreaking to next spring.

The project is a significant part of Fort Worth’s flood resilience strategy, and will ultimately create a north and south channel around the Trinity River, forming what’s known as Panther Island on hundreds of acres between downtown and the city’s Northside neighborhood.

“The Corps of Engineers is tasked with designing and constructing the 1.5-mile bypass channel to redirect the Trinity River and provide flood protection,” Beck added.

Despite the new timeline, the north channel remains the priority and is expected to finish as early as 2028, while the full project remains on track for a 2032 completion, pending funding and construction progress.

However, infrastructure work to clear the bypass path, such as relocating storm drains, sewers, and utilities, has also been delayed. Initially expected to wrap by July 2025, that work has now been rescheduled to August 2025, according to Clair Davis, who oversees the city’s portion of the project.

The project has faced financial hurdles over the years, especially during the Trump administration, which held up funding amid cost overruns and delays. It wasn’t until President Biden’s 2021 infrastructure law that the project regained momentum.

Before retiring in January, Rep. Kay Granger (R-Fort Worth) secured a $160 million funding request in the 2025 appropriations bill to help the Corps finish the bypass channels. But with potential shifts in leadership following the 2024 election, there’s uncertainty about whether the funds will remain intact.

“It is unclear if those funds will carry over into Congress under the Trump administration,” said Rep. Marc Veasey (D-Fort Worth) in January.

The overall project still requires an estimated $460 million in federal funds to complete, raising further questions about how future political developments may affect its timeline.

Let me know if you'd like a visual timeline or interactive map of the project included.

Originally reported by Nicole Lopez in Fort Worth Report.