Government Shutdown Begins; Minimal Impact to Transportation Programs

What’s happening: The U.S. Senate Sept. 30 once again rejected a House-passed measure to continue government spending through Nov. 21. Many federal programs that rely solely on annual appropriations will cease operations today, with hundreds of thousands of government workers expected to be furloughed.

However, the U.S. Department of Transportation (DOT) late yesterday released guidance on how each modal administration will operate, reaffirming precedent that most federally-supported transportation construction programs will continue to function unimpeded.

How it works: Federal highway, public transportation, and airport construction programs are unique in that they are supported by resources in highway and airport trust funds and run via multi-year laws. As a result, state departments of transportation and localities can continue normal operations with federal reimbursements continuing for work completed.

The one exception is the Capital Investment Grant (CIG) program, where delays to surface transportation projects may occur. The program, which funds transit capital projects, is partially funded by annual appropriations. Project owners will ultimately decide if these projects continue construction during the shutdown.

What’s next: ARTBA will keep members apprised of the latest developments and share updates, if any are made, to the U.S. DOT guidance.