Shutdown’s Impact on Federal Highway, Transit Agencies Minimal for Now

What’s happening: As the federal government shutdown stretches into its third week, the U.S. Department of Transportation (U.S. DOT) has furloughed over 12,000 employees. However, the majority of these positions are within the Federal Aviation Administration which relies on General Fund appropriations.

Despite the disruption, most surface transportation programs, including those under the Federal Highway Administration (FHWA), Federal Transit Administration, and Federal Motor Carrier Safety Administration continue operating. These agencies are funded through the Highway Trust Fund, insulating them from the lapse in annual appropriations.

In past government shutdowns, the Treasury Department has retained a sufficient number of employees needed to process FHWA invoices and reimburse state departments of transportation and other localities for work completed.

What else do we know? … Updated shutdown guidance issued Sept. 30 by U.S. DOT indicates most staff within the Secretary’s office will continue working as “essential employees.”

Staff from the Office of Civil Rights are among those being furloughed, which U.S. DOT noted in pausing funding reimbursements for mega-projects in the New York and Chicago regions. The Department announced reviews of these projects to determine their compliance with a new Interim Final Rule for the Disadvantaged Business Enterprise (DBE) program. However, U.S. DOT stated the reviews could not take place until Civil Rights staff returned to work, which is contingent on ending the shutdown.

What’s next: ARTBA members have access to a comprehensive assessment of the shutdown’s impact on federally funded surface transportation programs.