Federal funding on hold for several ODOT projects as USDOT issues new funding criteria
Updated Feb. 7, 2025
An executive order, issued by President Trump on January 20, calls into question how much federal funding some ODOT projects and initiatives will receive.
Two bills passed by Congress in 2021 and 2022, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, directed billions of dollars in federal funding to Oregon transportation projects. This recent executive order directed federal agencies to “immediately pause the disbursement of funds appropriated” by those two laws. Projects receiving funding from those two bills that could be impacted by this executive order are outlined below. This list will likely change as the agency learns more.
ODOT expects that projects funded by federal discretionary grants that do not yet have a signed grant agreement or have not yet obligated funding are at the highest risk. ODOT anticipates that discretionary grant projects with signed grant agreements and which have obligated funding are at the lowest risk of losing their federal funding.
At this time, ODOT is able to spend funds previously obligated to these projects but is not able to obligate new funds to federal discretionary grants from these two bills for any type of project or effort.
A memo, issued by Transportation Secretary Sean Duffy, lays out new criteria by which these discretionary grants will be evaluated. It advises that the DOT shall prioritize projects that: - Are in communities with marriage and birth rates higher than the national average.
- Prohibit recipients of DOT support or assistance from imposing vaccine and mask mandates.
- Require local compliance or cooperation with federal immigration enforcement.
It remains unclear at this time how the federal government will apply these new criteria to each transportation project.
While broader formula funding—or funding outside of discretionary grants—was briefly frozen, at this time, ODOT is receiving most formula funding, including formula transit funding.
However, ODOT is not able to obligate additional funding for the National Electric Vehicle Infrastructure (NEVI) formula program after the Federal Highway Administration issued a memo ordering states to suspend all state EV infrastructure deployment plans under the NEVI formula program. ODOT is currently able to spend funding previously obligated to the program which will pay for electric vehicle charging infrastructure on U.S 97, I-205 and I-5 south of Eugene but ODOT's efforts to build similar infrastructure for other roads in Oregon are in doubt pending federal direction.
Federal law prevents federal funding from being used for most maintenance services. As a result, issues with federal funding do not have an impact on ODOT’s ability to conduct day-to-day maintenance of the transportation system. However, the agency’s ability to maintain the system has been impacted by structural revenue issues at the state level. For more information, please visit ODOT’s transportation funding page.
Oregonians deserve a safe, accessible and reliable transportation system. ODOT will remain focused on supporting all Oregonians by connecting people and goods to places in the most climate-friendly, equitable and safe manner. More information on our priorities and values can be found in ODOT’s Strategic Action Plan.
Electric Vehicle Infrastructure Programs
ODOT has several federal funding sources for electric vehicle charging infrastructure that could be at risk.
- National Electric Vehicle Infrastructure formula funds: This program provides funding to states to build a nationwide network of public EV fast charging stations along major roads. ODOT will receive a total of $52 million by formula under the IIJA in annual installments through FY 2026. ODOT has obligated $26.1 million.
Charging and Fueling Infrastructure discretionary grant: This program provides funding to install electric vehicle charging stations and hydrogen fueling stations for trucks along Interstate 5 and other key freight routes. Oregon’s share of a $102 million joint FHWA grant with California and Washington will be $21.1 million. The grant agreement was signed Jan. 16, 2025 and $3.2 million has been obligated for planning and preliminary engineering.
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Electric Vehicle Charger Reliability and Accessibility Accelerator discretionary grant: This grant provided $10 million to Oregon in 2024 for public EV charging port repairs and station upgrades. The grant agreement has been signed with the federal government and funds have been obligated.
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Climate Pollution Reduction Grant – Community Charging Rebates: These EPA funds from the Inflation Reduction Act were awarded as part of a $197 million grant to the Oregon Department of Environmental Quality. From the overall grant, ODOT will receive roughly $11 million to bolster the Community Charging Rebates Program. The program provides rebates for EV charging station projects at multifamily homes, workplaces, and publicly accessible parking areas. This funding has been obligated to DEQ.
Discretionary Grants
ODOT has several highway federal competitive grants that have not yet obligated all of their funds, and any additional obligations are currently paused on these projects. ODOT’s federal discretionary grants includes the following major projects (in addition to the EV grants listed above).
Frequently Asked Questions and Definition of Terms
Q: What does obligation mean?
A: Obligation is the approval provided by Federal Highway Administration for work to start and expenditures to be reimbursed. This can be for new work/phases on a project or adding additional funding to an already existing project underway.
Q: What is the definition of a project?
A: A project is defined as any work which is federally funded and being reimbursed. This is inclusive to all types of work and not limited to just road work.
Q: What funds are allowed to be obligated?
A: All federal highway money, except for discretionary grants, is allowed to be obligated at this time. These consist of the following type of funds:
- National Highway Performance Program (NHPP)
- Surface Transportation Block Grant Program (STBG)
- Highway Safety Improvement Program (HSIP)
- Rail-Highway Crossing Program
- Congestion Mitigation & Air Quality (CMAQ)
- Metropolitan Planning
- National Highway Freight Program (NHFP)
- Carbon Reduction Program
- PROTECT Formula Program
- Congressional Directed Spending (Earmark)
- IIJA Special Apportionment Bridge
Q: My project is funded only with Congressionally Directed Spending (CDS) federal money. Can the project funding be obligated?
A: Yes, CDS funding is one of the funding sources currently allowed to be obligated.
Q: My project is funded only with federal Bridge funding provided under the Infrastructure Investment and Jobs act. Can the project funding be obligated?
A: No. Bridge funding provided under the IIJA is one of the types of funds for which all new obligations are on hold.
Q: My project has federal discretionary grant funding on it. Can I move forward with the obligation of funds?
A: No. All new obligations for national grant funding are on hold.
Q: Can an EV project funded with Carbon Reduction or STBG get obligated?
A: Yes. Since the funding is specifically coming from a federal formula program, the project can obligate.
Q: I am a local agency who received a federal discretionary grant and we are a direct recipient/grantee with Federal Highway. Can I obligate any new funding?
A: No. All national federal grant funding is currently on hold, whether the agency is a direct recipient/grantee or working through ODOT.
Q: I have funding currently obligated on my project. Can I continue work?
A: Yes, for projects with funding already obligated, work can continue, and reimbursements will continue.
Q: Can the STIP still be amended to update projects?
A: Yes, the STIP can still be amended to update projects, as that does not impact obligation of funding.
Q: Can we still be reimbursed for funds that were already obligated?
A: Yes, any funds expended that have already been obligated can be reimbursed.
Q: Is funding from the Federal Transit Administration impacted by this executive order?
A: At this time the Federal Transit Administration is processing and obligating formula grant awards, but they are not obligating any discretionary grant awards.