Decision Prevents Potential Delays for Infrastructure Projects.
The Trump administration has rescinded a newly implemented requirement that would have imposed an additional layer of federal review on state transportation plan modifications. The decision follows concerns that the extra scrutiny could have delayed or halted funding for essential infrastructure projects, including roads, bridges, and transit systems.
Federal transportation funding is primarily distributed to states through established congressional formulas based on factors such as population. For decades, states have largely maintained autonomy over how these funds are allocated, allowing them to prioritize projects as they see fit.
However, a recently introduced policy mandated that any changes to state transportation plans undergo legal review by the U.S. Department of Transportation (USDOT) headquarters in Washington before additional funding could be authorized. While modifications were already subject to federal oversight, approvals were typically processed efficiently at the regional level to ensure compliance with federal laws.
State transportation officials were notified of the policy reversal on February 28 via an email from Joung Lee, deputy director and chief policy officer of the American Association of State Highway and Transportation Officials. Lee confirmed that the review process would revert to regional offices, eliminating the need for Washington headquarters’ legal approval.
“As this remains a continuing development, we will keep you posted on any further updates,” Lee stated in his email.
Neither the USDOT nor the Federal Highway Administration provided further details regarding the rationale behind the initial implementation or subsequent reversal of the policy.
The Association of Metropolitan Planning Organizations (AMPO), which represents agencies overseeing federally funded local and regional transportation projects, had previously informed members that at least six states anticipated delays due to the additional review requirement.
“In areas with large-scale projects or narrow construction windows, even short delays can cascade into prolonged setbacks, increased project costs, and missed opportunities to address critical transportation needs,” AMPO noted in a memo.
However, the following day, AMPO shared updated information from the Federal Highway Administration confirming that while an administrative review was ongoing, “there is no pause” in approvals.
Under the now-rescinded requirement, even minor modifications such as lane additions, cost adjustments, or supply changes could have triggered federal legal review. Advocates for infrastructure projects expressed concern that the sheer volume of such modifications could significantly slow funding distribution, particularly as states prepare for peak construction season.
“You’re having to get approval from an office that didn’t have to approve things before,” said Steve Davis, vice president of transportation policy for Smart Growth America, a nonprofit focused on community and transportation improvements. “I don’t see any way that this does not slow down and delay projects.”
For example, Chicago’s metropolitan planning organization submits about eight amendments annually to its transportation improvement plan, each covering roughly 300 projects. With 410 metropolitan planning organizations nationwide regularly amending their plans, the additional review requirement could have resulted in widespread delays.
Adie Tomer, a senior fellow at Brookings Metro, expressed broader concerns beyond potential delays, suggesting that the review process might have been leveraged to align state-approved projects with federal policy priorities.
The Trump administration has previously issued executive orders aimed at curtailing government support for diversity, equity, and inclusion initiatives. Additionally, Transportation Secretary Sean Duffy issued a memo restricting recipients of USDOT funds from enforcing vaccine and mask mandates and mandating cooperation with immigration enforcement efforts. It remains unclear whether these orders would have influenced transportation plan approvals.
“Even the threat of amendments not being approved can have a chilling effect on project delivery,” Tomer cautioned. “And if project delivery is delayed, that means higher costs for the project and, in the end, the taxpayers.”
The USDOT’s decision to rescind the additional review requirement marks a significant victory for state transportation agencies and infrastructure advocates. By reverting to the previous approval process, the risk of unnecessary delays and increased costs has been mitigated. However, concerns remain about the potential for federal policies to influence state-approved projects in the future. As states move forward with crucial transportation improvements, maintaining efficiency in funding distribution and project approvals will be critical to meeting infrastructure needs without undue bureaucratic obstacles.
