AASHTO Journal - AASHTO Defends Transportation Funding During Proposed ‘Pause’

A memo released by the Trump Administration on January 27 – entitled M-25-13 and one since rescinded – aimed to put a “temporary pause on all activities related to obligation or disbursement of all federal financial assistance,” potentially including federal transportation funding.

In response, the American Association of State Highway and Transportation Officials sought immediate clarification from administration and U.S. Department of Transportation officials to ensure federal transportation funding provided directly to state DOTs continues without interruption.

[Above photo by the White House]

That memo, issued by the Office of Management and Budget or OMB and officially rescinded on January 29, sought to quickly determine whether any federal program is inconsistent with seven out of nearly 300 Executive Orders issued by President Trump since his inauguration on January 20.

AASHTO’s Tymon. Photo via the House T&I Committee.

AASHTO noted that OMB’s memo affected a broad collection of program categories that included discretionary grants, research initiatives, and loans, among others – touching virtually all federal programs.

“We conveyed to USDOT our belief that the vast majority of the transportation programs under USDOT’s jurisdiction should be exempt from the OMB memo,” explained Jim Tymon, AASHTO’s executive director.

“Specifically, we pointed out that the Federal-aid Highway Program should be exempt from the memo as it is a unique reimbursement-based program,” he said. “Based on legally binding obligations made previously by the federal government, states need to be paid immediately for highway construction and related costs already incurred.”

Subsequently, on January 29, OMB issued a new memo entitled “M-25-14” that rescinded the “M-25-13” memo that called for a temporary pause on all activities related to obligation or disbursement of all federal financial assistance.

“AASHTO will continue to work with USDOT to ensure that federal funding to states and related project management functions are fully restored,” Tymon noted.