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.
March 16, 2025
Action: With just hours to spare before the funding deadline at midnight March 15, Congress passed a continuing resolution (CR) to fund the government through the rest of FY 2025 (H.R. 1968, the “Full-Year Continuing Appropriations and Extensions Act, 2025”).
Result: The CR, together with Infrastructure Investment and Jobs Act (IIJA) advance appropriations, provides:
- $61.3 billion for federal-aid highways programs, an increase of $1.2 billion
- $20.9 billion for transit programs
- $16.2 billion for passenger and freight rail
The bill does not include earmarks despite member-selected projects appearing in previous versions of the legislation. Also, unlike past CRs, this bill does not include any across-the-board spending cuts to transportation programs for FY25. (However, rescissions could potentially occur in a future administration request.) Additionally, the CR does not include transportation policy provisions that are reactive (or supportive) of actions being taken by the new administration despite attempts by Democrats to use this legislation to reign in President Trump’s executive actions.
Impact: In general, the full-year continuing resolution (CR) funds government programs, including USDOT programs, through September 30. For most federal accounts, the funding will mirror last year’s levels. For transportation, the funding will match what was authorized by the Infrastructure Investment and Jobs Act (IIJA).
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.
Get up-to-the-minute guidance
Join our friends at Edgewise Network for a webinar tentatively scheduled for February 24 at noon Central. Keep an eye on your email or check back here for registration information.