Infrastructure and transportation officials are expressing concerns over potential funding delays following a recent freeze order from the White House budget office. The freeze, issued on Monday, has raised worries within the industry, although there is hope that it may only be temporary, similar to a recent executive order that briefly halted funding.
Marsia Geldert-Murphey, a former president of the American Society of Civil Engineers, highlighted the impact of project delays on labor costs. She emphasized that uncertainty over funding sources can lead to more expensive projects in the long run as they face delays or cancellations.
The freeze orders from the White House are broad in scope and could be seen as affecting the bipartisan Infrastructure Investment and Jobs Act, signed into law in 2021 under the Biden administration. This act allocated $1.2 trillion for transportation and infrastructure projects.
Despite a memo from the Office of Management and Budget on Tuesday narrowing the freeze's scope, concerns remain high as many projects could still be affected due to potential conflicts with the President's climate and energy policies.
Jim Tymon, the executive director of the American Association of State Highway and Transportation Officials, expressed immediate worries about the federal aid highway formula programs, which provide over $40 billion annually to states. This program operates on a reimbursable basis, where states cover project costs upfront and then seek reimbursement from the federal government upon completion.
The American Public Works Association is also monitoring the situation to assess the potential impact on its members and public works departments nationwide, according to Mark Shade, the government affairs media manager at the association.
