Policy Alert: US DOT Memos
Dear ACT Members,
The start of the Trump administration has seen a flurry of Executive Orders; many of which have potential impacts on federally funded transportation programs. In response to directions given from the EOs, the USDOT released two memos; one addressing DEI, climate change, and environmental justice, and the other establishing cost-benefit analysis as a pillar of their decision making. Secretary of Transportation, Sean Duffy, also signed a Notice of Proposed Rulemaking (NPRM) which would revoke the GHG Performance Rule.
As priorities shift from the previous administration, ACT has provided this guide on the potential impacts of the EOs and USDOT orders on funding for TDM initiatives. While many provisions explicitly hinder our climate and sustainability goals, we believe common ground could be found on TDM issues. The USDOT is particularly concerned about transportation issues for families, quality of life, and increasing economic opportunities; all of which can be achieved through TDM. ACT is continuing to closely monitor any changes at the USDOT and how they might affect transportation issues at large.
Executive Orders:
EO 14154 – Unleashing American Energy
This order denounces “ideologically motivated” previous regulations on America’s natural resources and sets the stage for America’s oil and gas production to ramp up. Further, it calls for “all agencies [to] immediately pause the disbursement of funds appropriated” through Inflation Reduction Act and the Infrastructure Investment and Jobs Act. There remains significant uncertainty in what projects will be part of the funding pause due to the political and non-specific nature of the order. However, we expect that the administration will focus on reviewing energy programs as outlined in Section 2.
ACT will continue to monitor the funding pause and the programs it will apply to.
EO 14173 - Government Agencies and Employees: Ending Illegal Discrimination and Restoring Merit-Based Opportunity
This executive order targets DEI and environmental justice requirements. It is unclear how this might affect how state DOTs and MPOs evaluate programs which receive federal funding.
ACT will continue to monitor these changes.
USDOT Orders:
Implementation of Executive Orders Addressing Energy, Climate Change, Diversity, and Gender
As directed by President Trump's Executive Orders*, this memo, "Implementation of Executive Orders Addressing Energy, Climate Change, Diversity, and Gender," revokes three standing DOT orders, as well as cutting funding for programs which relate “in any way” to climate change, environmental justice, greenhouse gas emissions, racial equity, gender identity, the Justice 40 initiative, and DEI. A 10-day review period was given on January 29 to identify all such programs, orders, rules, and more.
The three USDOT orders that have been revoked are DOT Order 1000.17 (Department of Transportation Equity Council), DOT Order 4360 (Climate Change Adaptation and Resilience Policy for DOT Operational Assets) and DOT Order 5610.2C (U.S. Department of Transportation Actions to Address Environmental Justice in Minority Populations and Low-Income Populations). Together, the elimination of these programs results in the removal of the USDOT Equity council which incorporated equity into transportation policy, revokes orders to consider climate adaptation and resilience strategies, and removes the consideration of environmental justice for low-income and minority populations.
*EO 14148 – Initial Rescissions of Harmful Executive Orders and Actions, EO 14151 – Ending Radical and Wasteful Government DEI Programs and Preferencing, EO 14154 – Unleashing American Energy, EO 14168 - Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government.
Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies, Programs, and Activities
In this memo, "Ensuring Reliance Upon Sound Economic Analysis in Department of Transportation Policies, Programs, and Activities," directives are given for USDOT funding decisions with an emphasis on “sound economic analysis”. Projects will be prioritized if they utilize user-payer models (such as toll roads), support transportation needs for families (with preference to areas with marriage and birth rates higher than the national average), align with local economic opportunity zones, do not impose vaccine or mask mandates, and comply with immigration enforcement.
Economic justification will be required to receive USDOT funding. Social costs are not considered in this analysis. For example, the Social Cost of Carbon calculation is no longer a factor. Projects which further "local political objectives” will be discouraged if they do not relate to a federal interest.
Relevant to the dispersion of funding for TDM related projects, the USDOT states that they support “maximiz[ing]...economic opportunities, such as increased access to jobs, healthcare facilities, recreational activities, commercial activity.... help alleviate poverty, enhance safety, and primarily benefit families and communities by improving the quality of their lives, raising their standards of living, or enabling them to participate more fully in our economy.” Further, they emphasize the importance of avoiding adverse effects on families and communities. These impacts include “a denial of or a reduction in transportation services; increased difficulty in raising children in a safe and stable environment; and destruction or disruption of community cohesion, safety, or economic vitality.”
Notice of Proposed Rulemaking (NPRM) to Rescind the GHG Rule
The Biden-Harris administration’s requirement that state DOTs and MPOs to report CO2 emissions of federally funded highways has now been rescinded.
Final Takeaways
The recent Executive Orders signed by President Trump, and the consequent USDOT directives, have potential, significant impacts on the projects that will receive federal funding on the state and local level. While many of these orders are not clear, ACT will continue to monitor the situation and provide relevant information as it becomes available.
Many of these changes and orders signal a shift away from projects that have been historically funded by the USDOT. At the same time, there is much overlap between specific goals the USDOT has mentioned and TDM strategies. Priorities such as increasing safety for families, boosting economic activities, working against a reduction in transportation services, and increasing access to jobs and other necessities are all functions of Transportation Demand Management. We all must continue to hold the USDOT accountable to ensure funds are being adequately dispersed in working towards these goals.
For questions and concerns as we all navigate these orders, please reach out to ACT’s Government Affairs and Policy Manager, Emma Wasserman (ewasserman@actweb.org).
Thank you,
ACT Staff