The Growing Impacts of the Federal Government Shutdown on Transportation Programs
As the current federal government shutdown has become the longest in U.S. history, pressure is mounting on Congress to resolve the impasse and reopen the government. The lapse in funding is increasingly disrupting federal programs and affecting employees, intensifying calls for the Congress and the President to reach an agreement that restores full operations.
Many highway and bridge projects have enjoyed continued funding through the shutdown thanks to dedicated Highway Trust Fund (HTF) resources. Also, many toll operators do not rely heavily on federal funding for projects and operations. Nonetheless, the ripple effects of the shutdown are now being felt more widely across the transportation sector.
Federal functions essential to infrastructure development—such as environmental reviews, grant processing, and project authorizations—are slowing down and impacting project schedules. This slowdown is creating uncertainty and delaying progress for construction and engineering firms, as well as for businesses involved in project design, contracting, and supply chains. The longer this uncertainty persists, the greater the risk that the nation’s infrastructure projects will face setbacks in the early stages of project delivery and readiness for construction.
On the policy front, House Transportation and Infrastructure Committee Chair Sam Graves acknowledged this week that his goal of advancing a surface transportation reauthorization bill by year’s end will be delayed. Although Congressional staff continue to draft legislative language, a House bill is now unlikely before next spring.
Despite these disruptions, highway and bridge programs remain relatively fortunate. Projects and programs funded through the HTF and other mandatory spending accounts have largely been insulated from the shutdown’s effects. Similarly, programs supported by the five-year advance appropriations from the Infrastructure Investment and Jobs Act (IIJA) remain unaffected.
These circumstances underscore IBTTA’s top federal priority: securing new, dedicated revenue sources to address the long-term solvency of the Highway Trust Fund. Without new revenues, the protections currently shielding critical transportation investments and operations during federal disruption and uncertainly, like a shutdown, will erode over time.
IBTTA welcomes Congressional consideration of vehicle registration fees as one potential new revenue source—a positive step forward, though a modest one. Ensuring the continued viability of the HTF requires serious and decisive action to identify and implement sustainable revenue alternatives to augment and supplement the gas tax. In addition, federal law should provide greater flexibility to deploy tolling and road pricing strategies on federal-aid highways, reducing reliance on federal funding while supporting operations and long-term infrastructure investment.
The IBTTA Government Affairs team continues to monitor the shutdown closely and will keep members informed of any significant developments. If you have any questions, please contact Mark Muriello at [email protected]