New Department of Transportation order could have trickle-down effect for Austin projects
AUSTIN (KXAN) — As a new federal administration under President Donald Trump makes rapid changes, local policy makers said they’re consistently working to respond.
Mayor Pro Tem Vanessa Fuentes talked about the importance of her elevated role this year on the Austin City Council for that reason, saying she’s closely watching “what’s happening at the federal government and at the state level.”
One set of possible changes handed down from the Department of Transportation (DOT) last week in the form of an order has the potential to, at the very least, put some federal funding for Central Texas transportation projects in question. As is common with all changes in administration, the changes will certainly set the tone for future funding requests.
The order changes up how the DOT will dish out funding to better align with the adjusted priorities of the new administration.
“Secretary Sean Duffy, having taken over the reins at the United States Department of Transportation, is working to put his stamp and the stamp of President Trump on the Department of Transportation’s federal spending,” said Joel Roberson, partner at Holland & Knight. Roberson works with clients in federally regulated industries including transportation.
But some of the elements in the order are tied to Trump’s initiatives outside of transportation. Cities will not get funding if they are “imposing vaccine and mask mandates” or if they don’t comply with federal immigration enforcement, according to the order.
That last requirement is something Austin leaders said is not within their jurisdiction.
“Our local police officers are not responsible for federal civil immigration and that was an important message for me to share out…first and foremost just clearing up where this is coming from and who is responsible for it is important,” Fuentes said on this week’s episode of KXAN Live show, ‘Inside Austin’s Agenda’.
There’s still a process that needs to play out here to determine what’s going to stick. The order does say, “to the maximum extent permitted by the law.” That extent is still being worked through at the federal level.
“So they [the Secretary and his team] will be looking at whether the law affords them that flexibility, and then will start implementing that,” Roberson said. “That decision can, of course, be challenged in law, and stakeholders could argue that the way that they’ve chosen to prioritize federal funding either goes beyond the statute or has a disparate impact to populations across the country.”
Why does it matter to Austinites?
The DOT has previously given Austin tens of millions of dollars for things like pedestrian safety, city lighting and intersection improvements — the city frequently relies on federal dollars for projects.
In addition, getting passenger rail between major metros in Texas will rely heavily on federal funds and the city of Austin is banking on federal money to help with its planned light rail line.
“In 2024, Austin Light Rail was accepted into the Federal Transit Administration’s competitive Capital Investment Grants Program. We continue to work closely with the FTA to advance the project through this multi-year grant application process. They will keep us apprised of any changes to the official grant program guidance resulting from the new administration’s orders,” said Jennifer Pyne, Executive Vice President, Planning, Community and Federal Programs with Austin Transit Partnership (ATP).
A spokesperson for the Texas Department of Transportation (TxDOT) said it “will continue to utilize federal funding for projects across the state as we await further guidance.”
