Transportation Dept. Drops New Review Phase for State Projects

In a recent development, the Trump administration has decided to retract its previous demand for increased federal oversight on state transportation plan changes, a policy which had raised apprehensions regarding potential delays or stoppages in road, bridge, and transit payments due to political disagreements.
For years, federal funds meant for transportation projects have been distributed to states following existing congressional formulas, which take various factors like population into account. This setup has historically allowed states substantial freedom in prioritizing and managing projects according to their necessity.
A surprising policy, introduced last week but now reversed, required the U.S. Department of Transportation’s Washington lawyers to approve every change to state transportation plans, despite these amendments typically undergoing quick regional office reviews to ensure compliance with U.S. laws.
State transportation departments received communication on the change of course via an email from Joung Lee, the deputy director and chief policy officer for the American Association of State Highway and Transportation Officials. Lee revealed that the Trump administration confirmed the review process would revert back to the regional level, eliminating Washington’s approval requirement.
The U.S. Department of Transportation and Federal Highway Administration have not commented on why this additional scrutiny was initially implemented or subsequently rescinded.
The Association of Metropolitan Planning Organizations (AMPO), which oversees federally funded local and regional transportation projects, reported that at least six states had anticipated delays in plan approvals due to the newly introduced review.
AMPO highlighted in its communication that any delay, no matter how brief, could lead to extended setbacks, elevated project expenses, and missed opportunities to tackle essential transportation demands.
The following day, AMPO shared updated information from the Federal Highway Administration clarifying that projects are undergoing an ongoing administrative review but there is “no pause” on approvals.
Even minor amendments, such as altering road lanes or revising cost estimates, might have necessitated a federal review, causing alarm among transportation advocates worried over potential delays of critical federal funding as many states gear up for construction season.
Steve Davis, vice president of transportation policy for Smart Growth America, expressed concerns about the slower approval process, saying, “You’re having to get approval from an office that didn’t have to approve things before.”
The metropolitan planning organization in Chicago, which submits around eight yearly amendments to its transportation improvement plan, each with roughly 300 different projects, is just one of 410 organizations nationwide navigating through this revised review process.
Adie Tomer, from the Brookings Institution’s metropolitan policy program, raised concerns over potential project redirections to align with the administration’s policy goals. Executive orders by Trump aimed at curtailing government support for diversity, equity, and inclusion programs alongside Secretary Sean Duffy’s memo prohibiting certain mandates might influence state transportation plan amendments.
Tomer pointed out that merely the threat of having transportation amendments disapproved could disrupt project delivery timelines, ultimately increasing project costs and affecting taxpayers.