Changes are to be expected with a new presidential administration, especially when there is a transition in which party is in power. However, the changes between the Biden and Trump administrations are much more profound than typical and have caused uncertainty and confusion as to the status of federal transit funding.
Genfare’s government relations team is on the ground making sense of the day-to-day actions of the Trump administration. Check here regularly for the latest news and expert analysis so you can be in the know about the impacts to your agency.
February 5, 2025
Action: Transportation Secretary Sean Duffy issued an internal memo ordering that federal transportation funding decisions for competitive grants revoke Biden administration criteria regarding ‘Justice 40’ (preference for low-income and minority communities) in favor of criteria that benefit areas with high birth and marriage rates. There were also directives for USDOT to take into consideration how grantees deal with non-transportation-related matters such as dealing with illegal immigrants, DEI, and climate change.
Result: This memo is simply guidance, and we will get a clearer look at how the administration wants to apply these ideas once notices of funding availability come out. It should also be noted that the court’s most recent action regarding funding pauses means that USDOT will only be able to apply these criteria toward future funding rounds and will not be able to retroactively apply these themes to projects or programs that have already been awarded.
Impact: It’s too soon to say if and how all the criteria outlined in the memo will be applied to future funding, as some of these criteria will certainly be challenged in court over the coming years. Like the temporary freeze on funding mentioned on the February 4 update, these concepts will not impact formula funds, which make up more than 90% of all federal transportation funding.
What is becoming clear is that it appears this administration will more likely spread funding to smaller and medium-sized communities as well as rural communities.
February 4, 2025
Action: The first two weeks of the second Trump administration have been marked by a flurry of executive orders, including the freezing of federal transportation funding. This directive’s goal was to give the new administration time to review funding and ensure that no funding was going towards programs or projects countering the Trump administration’s stated policy regarding Diversity, Equity, and Inclusion (DEI) or funding Green New Deal Initiatives.
Result: Just as quickly as orders were issued, courts have ruled against them, indicating that the executive branch does not have the authority to pause or freeze Congressional appropriations and authorizations. It’s likely the Trump administration will challenge these decisions – however, even if reinstated, the freeze would likely be limited to individual projects rather than a broad swath of federal funding.
Impact: As of now, federal transportation funding remains available. More importantly, formula funding, which accounts for about 90% of transportation funding and an even higher percentage of fare collection funding, is not impacted and will continue to flow as usual.
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