Active Federal Policy Work Continues Despite Government Shutdown

Even with the government shutdown, federal transportation activity remains in motion. Congressional staff are drafting language for the next surface transportation reauthorization bill. At the same time, significant furloughs at the Federal Communications Commission (FCC) have slowed progress on the petition to preserve the lower 900 MHz band—a vital element of electronic tolling. And the U.S. Department of Transportation (USDOT) has issued an Interim Final Rule updating the Disadvantaged Business Enterprise (DBE) program—removing race- and gender-based presumptions and requiring contractors on federally funded projects to individually demonstrate disadvantage.

Why These Developments Matter

Timing is everything. House Transportation and Infrastructure Committee Chairman Sam Graves aims to introduce reauthorization legislation by the end of the year to ensure a bill is ready before the September 2026 expiration of current law.

On spectrum, the absence of a clear FCC action timeline underscores the need for an informed Congress to be ready to step in if decisions threaten tolling and transportation systems. Meanwhile, the immediate implementation of DBE changes is leaving many states grappling with recertification challenges, risking delays and added costs for major infrastructure projects.

These national policy shifts carry local consequences—especially in regions where federal employment and contracting shape daily travel, economic activity, and infrastructure investment.

Local Realities: Insights from IBTTA Board Member Amanda Baxter

IBTTA Board Member Amanda Baxter, Group Executive, North America and Corporate Development, Atlas Arteria, offers an operator’s perspective on how shutdowns reverberate through local economies and mobility networks.

“Government shutdowns tend to squeeze the family wallet before they affect people’s mobility,” Baxter observed. “In fact, some would argue that discretionary travel can even see a slight bump during off-peak hours when fewer commuters are heading to work.”

Nearly 20 percent of all federal employees live in the Greater Washington Area (GWA). Of these, about 40 percent reside in the District of Columbia, with the remainder commuting from Maryland and Virginia to their federal workplaces. According to The Brookings Institution (2025), the region experienced a 4.5 percent decline in federal employment alongside a modest increase in private-sector jobs between January and September 2025—data reported before the most recent shutdown.

Historically, the GWA’s economy has benefited greatly from federal activity. Government contracting alone accounts for nearly 25 percent of the region’s economic output, meaning that when federal funding is paused or frozen, contract delays or cancellations can ripple through the public, private, and nonprofit sectors.

Baxter noted that it is too soon to tell if the current shutdown will have a measurable impact on traffic along the Dulles Greenway. During previous shutdowns, weekday traffic volumes dipped by about five percent—an effect likely tied not only to furloughed workers but also to the broader economic slowdown triggered by reduced federal spending.

Still, for those operating user-funded infrastructure, there’s a bright side: mobility remains strong. Consumer Affairs (2025) ranked the Washington region as having the worst congestion in the United States this past summer—a distinction that, in this case, underscores the resilience of local travel and demand.

IBTTA Advocacy in Motion

IBTTA continues to represent the industry’s interests at the federal level despite the government shutdown. In October, IBTTA’s Government Affairs team held 18 meetings with House and Senate offices, advocating for industry priorities including radio frequency spectrum protection, surface transportation reauthorization, toll violation collections, and a potential toll credit marketplace.

We are also coordinating closely with IBTTA members and partners on the DBE program changes—monitoring comments submitted to USDOT and assessing potential impacts on agencies and contractors. Through these efforts, IBTTA remains focused on keeping members informed and championing the principle that there are No Free Roads.

Looking Ahead

As the shutdown continues, funding lapses are about to have more significant impacts on federal employees and programs. With the President now back in Washington, pressure is mounting on Congress to reach an agreement and restore full government operations.

IBTTA will continue to monitor developments closely and provide timely updates on events in Washington and their implications for the industry.

For questions or insights, please reach out to IBTTA Vice President of Policy & Government Affairs, Mark Muriello,.