US DOT policy shift to impact infrastructure funding and construction priorities

In a significant policy shift, US Transportation Secretary Sean Duffy rescinded two memorandums from the Biden administration that integrated social justice and environmental considerations into infrastructure funding decisions.

Roundabout construction (Image: Adobe Stock) Construction of a roundabout intersection in the US (Image: Adobe Stock)

These memorandums, which a press release from the US Department of Transportation (DOT) said were both titled 鈥楶olicy on Using Bipartisan Infrastructure Law Resources to Build a Better America鈥�, were issued in 2021 and 2023, and had directed state and local agencies to prioritise projects advancing equity and environmental goals. 鈥�

In a 10 March DOT press release, Duffy criticised these directives as conflicting with congressional intent, suggesting Biden-era policy imposed 鈥榰nnecessary burdens鈥� related to greenhouse gas emissions and equity initiatives.

US Transport Secretary says funding priority to be given to areas with high birth rates New US transport Secretary Sean Duffy says the Department of Transport must give funding priority to communities with high birth rates

He stated, 鈥淭he previous administration flouted Congress in an attempt to push a radical social and environmental agenda on the American people. This was an act of federal overreach.鈥�

The rescission aligns with the Trump administration鈥檚 efforts to eliminate policies perceived as promoting specific social and environmental agendas.

In January, the US DOT announced actions to 鈥渞escind woke policies鈥� and roll back regulations, reflecting President Trump鈥檚 commitment to refocus on infrastructure priorities absent perceived equity (including DEI - diversity, equity and inclusion initiatives) and environmental alignments.

What was the Biden Administration鈥檚 鈥楶olicy on Using Bipartisan Infrastructure Law Resources to Build a Better America鈥�?
US DOT Sec Sean Duffy (Image: Reuters/Elizabeth Frantz) US Department of Transportation Secretary Sean Duffy (Image: Reuters/Elizabeth Frantz)

The original memorandums had emphasised:鈥�

  • Promoting safety for all road users, especially vulnerable ones.鈥�
  • Supporting efficient project delivery through streamlined environmental reviews.鈥�
  • Ensuring compliance with the Americans with Disabilities Act (ADA).鈥�
  • Addressing environmental impacts and enhancing infrastructure resilience to climate change.鈥�
  • Incorporating emerging technologies like electric vehicle charging stations and renewable energy.鈥�
  • Reconnecting communities and involving disadvantaged groups in planning and design processes.鈥�

The US DOT did not respond to any of Construction Briefing鈥檚 requests to comment, including whether or not the rescission meant the US government no longer supports ADA compliance in public infrastructure projects or expanding emerging technologies like electric vehicle infrastructure or rural broadband. The US DOT also did not respond to specific questions asking which portions of the 2021 and 2023 policy memos were deemed 鈥渞adical鈥� by the new secretary and administration. 

Trump administration to review US$100bn California High-Speed Rail The US Department of Transportation will review California鈥檚 High-Speed Rail project
DOT鈥檚 policy would impact construction
All-needs entry to railway station (Image: Adobe Stock) Infrastructure for an all-needs accessible railway-station entry-point. (Image: Adobe Stock)

This policy shift could have notable implications for the construction industry, particularly in transportation infrastructure projects.

By removing equity and environmental considerations from funding decisions, state and local agencies may face fewer regulatory hurdles, potentially accelerating project approvals and reducing compliance costs.

However, projects aimed at reconnecting disadvantaged communities, integrating renewable energy, or improving climate resilience may see reduced prioritisation. Contractors specialising in green infrastructure, sustainable design, or urban redevelopment might need to adjust strategies, while firms focused on traditional road and bridge construction could benefit from a more streamlined permitting process.

Critics of the DOT鈥檚 action argued that removing these considerations may overlook the needs of marginalised communities disproportionately affected by infrastructure developments. In turn, construction companies that service these areas may be at risk of losing potential federal work.

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