Trump’s Executive Order Halts Billions in Infrastructure Funding
On his first day in office, Pres. Donald Trump issued an executive order to immediately pause the disbursement of funds appropriated through two key laws – the Inflation Reduction Act of 2022 (IRA) and the Infrastructure Investment and Jobs Act (IIJA). Congress had appropriated $144 billion in direct spending under the IRA and $836 billion under the infrastructure law. However, the administration’s vague memo accompanying the order has raised significant questions about the scope of the freeze and its implications.
This decision threatens a wide range of infrastructure, transportation and energy projects, potentially jeopardizing billions of dollars allocated for ongoing state initiatives. These include projects focused on roads, bridges, broadband expansion and climate resilience efforts. States now face significant uncertainty as their long-term asset management plans risk being disrupted by this abrupt suspension.
Critics argue that the move could also set a dangerous precedent. By refusing to release congressionally approved funds, Trump risks violating long-standing laws governing federal spending. Senator Jeff Merkley of Oregon, the top Democrat on the Senate Budget Committee, warned that the order signals an attempt to undermine Congress’ constitutional spending authority.
“The law is very clear—he must implement what Congress has passed,” Merkley stated.
Transportation budget expert Jeff Davis added that the government could face “a ton of lawsuits” if it attempts to limit spending by refusing to disburse money after a recipient has completed work. He pointed to the Prompt Payment Act, which requires agencies to pay their bills in a timely manner, as a key safeguard against such actions.
Fresh guidance issued by the Office of Management and Budget (OMB) suggests that the scope of the order may be limited to climate change programs, electric vehicle charging grants and other expenditures opposed by Trump. However, with the language of the order remaining ambiguous, and no clarifications provided by either the Department of Transportation (DOT) or the White House, uncertainty persists. TIA will continue to collaborate with industry stakeholders to identify which DOT programs are or will be affected by the executive order. Further updates will be shared as more information becomes available.
