U.S. DOT Rescinds Biden-Era Funding Priorities

What happened: U.S. Transportation Secretary Sean Duffy issued a memo March 10 rescinding policy priorities of the Biden-era Federal Highway Administration (FHWA) in implementing the 2021 infrastructure law. Duffy characterized his action as “getting back to basics — building critical infrastructure projects that move people and move commerce safely,” as opposed to “inject[ing] a social justice and environmental agenda into decisions” relating to those projects.

Why it matters: The directive formally negates a controversial FHWA memo issued shortly after the passage of the 2021 law, which expressed preference for maintenance and rehabilitation of existing highway and bridge facilities (sometimes called ‘fix it first’) over new capacity projects.

In response to opposition voiced by ARTBA, allied organizations and several Republican Senators who had supported the 2021 law, Federal Highway Administrator Shailen Bhatt issued a superseding memo shortly after taking office in earlier 2023. He noted, “States determine which of their projects shall be federally financed by federal-aid highway formula dollars,” while reiterating FHWA’s ongoing policy goals related to environmental impacts, resiliency, electric vehicle charging infrastructure, and reconnecting communities.

ARTBA CEO Dave Bauer praised the action as “removing any doubt about the authority of states to use highway formula funds in a manner that best meets their unique needs” while consistent with national objectives.

What’s next: ARTBA continues its dialogue with the department’s new leadership on transportation policy and regulatory improvements.