Regulatory Alert: White House Clarifies Order Pausing Bipartisan Infrastructure Law Funding
January 22, 2025
Today, the White House’s Office of Management and Budget (OMB) issued a memorandum clarifying one of President Trump’s executive orders that required each federal agency, including the Federal Aviation Administration (FAA), to “immediately pause the disbursement of funds” appropriated through the Infrastructure Investment and Jobs Act (IIJA), popularly known as the Bipartisan Infrastructure Law (BIL), and Inflation Reduction Act (IRA). The clarification appears to narrow the scope of BIL and IRA funds that are subject to the pause and makes it easier for agencies to resume disbursement of funds that are subject to the pause.
Although some questions remain, we continue to expect that the availability of BIL funding for airports will not be affected by the order based on the OMB clarification and our conversations with FAA. However, the U.S. Department of Transportation (DOT) and FAA do not have any official political appointees onboard at their respective agencies and circumstances may always change. We will be closely monitoring implementation of the directive to ensure that airport BIL funding is not impacted.
Pause in BIL Funding Disbursements. In the executive order entitled, “Unleashing American Energy,” each federal agency is required to “immediately pause the disbursement of funds” appropriated through BIL and IRA to ensure each program is consistent with the new administration’s new energy policy goals. The order is broadly written to include BIL-related airport programs. Since it was issued, the order has sparked significant confusion about the impact of the pause, including whether it precluded a grant recipient from being reimbursed for expenses under an existing agreement. Lawmakers and many stakeholders, including AAAE, have been raising questions with the new administration over the past day or so.
In its clarification, OMB suggests that only BIL or IRA funds that “contravene the policies” established in the order are subject to the pause. These policies focus on eliminating the so-called “electrical vehicle (EV) mandate,” promoting gasoline-powered automobiles, and other objectives that largely unrelated to airport projects. In addition, the clarification further suggests that agencies may “disburse funds as they deem necessary after consulting” with OMB. This is a notable change because the order states that funds could only be disbursed after the agency makes recommendations and, if appropriate, are implemented.
Sean Duffy’s Nomination Progresses; Questioned About BIL Funding. In related news, the Senate Commerce, Science, and Transportation Committee today unanimously approved the nomination of Sean Duffy to be the next Secretary of Transportation. The vote was 28-0. Today’s action clears the way for the full Senate to consider the nomination. During today’s session, Ranking Member Maria Cantwell (D-WA) discussed the importance of BIL funding and her concerns about the executive order that the White House issued on Monday. Cantwell said that Duffy clarified to her and others on the committee that he is “going to continue to work to expedite transportation infrastructure investments that have been made by this Congress and hopes to get these projects completed.” Duffy made a similar commitment during his nomination hearing.
Today, the White House’s Office of Management and Budget (OMB) issued a memorandum clarifying one of President Trump’s executive orders that required each federal agency, including the Federal Aviation Administration (FAA), to “immediately pause the disbursement of funds” appropriated through the Infrastructure Investment and Jobs Act (IIJA), popularly known as the Bipartisan Infrastructure Law (BIL), and Inflation Reduction Act (IRA). The clarification appears to narrow the scope of BIL and IRA funds that are subject to the pause and makes it easier for agencies to resume disbursement of funds that are subject to the pause.
Although some questions remain, we continue to expect that the availability of BIL funding for airports will not be affected by the order based on the OMB clarification and our conversations with FAA. However, the U.S. Department of Transportation (DOT) and FAA do not have any official political appointees onboard at their respective agencies and circumstances may always change. We will be closely monitoring implementation of the directive to ensure that airport BIL funding is not impacted.
Pause in BIL Funding Disbursements. In the executive order entitled, “Unleashing American Energy,” each federal agency is required to “immediately pause the disbursement of funds” appropriated through BIL and IRA to ensure each program is consistent with the new administration’s new energy policy goals. The order is broadly written to include BIL-related airport programs. Since it was issued, the order has sparked significant confusion about the impact of the pause, including whether it precluded a grant recipient from being reimbursed for expenses under an existing agreement. Lawmakers and many stakeholders, including AAAE, have been raising questions with the new administration over the past day or so.
In its clarification, OMB suggests that only BIL or IRA funds that “contravene the policies” established in the order are subject to the pause. These policies focus on eliminating the so-called “electrical vehicle (EV) mandate,” promoting gasoline-powered automobiles, and other objectives that largely unrelated to airport projects. In addition, the clarification further suggests that agencies may “disburse funds as they deem necessary after consulting” with OMB. This is a notable change because the order states that funds could only be disbursed after the agency makes recommendations and, if appropriate, are implemented.
Sean Duffy’s Nomination Progresses; Questioned About BIL Funding. In related news, the Senate Commerce, Science, and Transportation Committee today unanimously approved the nomination of Sean Duffy to be the next Secretary of Transportation. The vote was 28-0. Today’s action clears the way for the full Senate to consider the nomination. During today’s session, Ranking Member Maria Cantwell (D-WA) discussed the importance of BIL funding and her concerns about the executive order that the White House issued on Monday. Cantwell said that Duffy clarified to her and others on the committee that he is “going to continue to work to expedite transportation infrastructure investments that have been made by this Congress and hopes to get these projects completed.” Duffy made a similar commitment during his nomination hearing.
