Trump Stops Federal Infrastructure Spending 

An executive order from President Donald Trump has paused disbursements for the bipartisan Infrastructure Investment and Jobs Act (IIJA), threatening ongoing construction projects across the United States.

Legal and policy experts warn this move could breach contracts and violate the Impoundment Control Act, with projects in-progress left unfunded or stalled.

“It’s certainly even a step further than we thought the administration would go. Now they’re violating contract laws as well as the Constitution,” said Charlie Ellsworth, senior adviser to the Checks and Balances War Room of the Congressional Integrity Project.

The IIJA – which made the single largest dedicated investment in American transportation infrastructure since the construction of the Interstate Highway System in the 1950s and 1960s – is now heading into its fourth year of funding. IIJA is due to provide $62 billion in funding for Fiscal Year 2025, an increase of $18.8 billion in formula programs compared to Fiscal Year 2021, the last fiscal year before the law was implemented. This funding is distributed annually by FHWA based on Congressionally mandated formulas.

The White House followed up the executive order by issuing a memorandum clarifying that the pause on the disbursement of grants and loans applies only to “funds supporting programs, projects or activities that may be implicated by the policy established in Section 2 of the order.”

Section 2 of the executive order, however, does not discretely list portions of the two laws for which money should be paused. It instead includes broader language to direct agency actions, touching on issues such as encouraging energy exploration, protecting economic and national security and eliminating the electric vehicle mandate.

The memo does note that “agency heads may disburse funds as they deem necessary after consulting with the Office of Management and Budget.”

Responding to the executive order, The National Stone, Sand & Gravel Association’s Interim CEO Michele Stanley issued the following statement:

“Last week, the White House issued an executive order pausing disbursements for funds from the Infrastructure Investment & Jobs Act (IIJA) and the Inflation Reduction Act (IRA). The funding of these two bills is critical to provide much needed certainty in the planning of infrastructure projects, and is vital to the success of our industry. We are glad the reimbursements to states for formula funds has resumed. We will work with Congress and the Trump administration for more details and guidance on other projects affected by this EO.”

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