White House Rescinds Executive Order That Threatened IIJA Funding

The White House has rescinded an executive order that froze trillions of dollars in federal grants and loans, and sparked mass confusion across the country. A federal judge had temporarily blocked it.

The executive order paused disbursements for the bipartisan Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), threatening ongoing construction projects across the United States.

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.

Responding to the original executive order, The National Stone, Sand & Gravel Association’s Interim CEO Michele Stanley said, “IIJA and IRA … are critical to providing much needed certainty in the planning of infrastructure projects, and [are] vital to the success of our industry.”

Crowell & Moring LLP, an international law firm with offices in the United States said, “The executive order’s directive to pause disbursements and review funding processes has significant implications for the implementation of the IIJA and IRA. Whether the pause is temporary or becomes permanent, this action potentially could halt billions of dollars in obligated funding for infrastructure projects that are already underway, including those already under construction.”

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