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CTC hears federal funding update and delay in NEVI program guidance
Summary
Caltrans staff told the Transportation Commission that federal highway formula funds continue to flow under a continuing resolution but discretionary grants remain under review; National Electric Vehicle Infrastructure (NEVI) funding and guidelines were reported as paused pending federal review, affecting planned EV charging projects.
Long Beach — Caltrans budget staff briefed the California Transportation Commission on federal funding conditions and the state’s allocation capacity, saying federal formula funds remain available while several discretionary programs are under administrative review.
Keith Duncan, Caltrans Division of Budgets, told commissioners the recent continuing resolution allows the Federal Highway Administration to issue apportionments that sustain federal formula funding through the current fiscal year. “The core program—the formula funds that flow through the commission—are continuing without interruption,” Duncan said.
Duncan described two broad federal funding categories: formula funds that form the backbone of many CTC programs, and discretionary funds (competitive grants) that have seen guidance reviews and holds. He said projects already authorized or obligated continued to be reimbursed, but new discretionary awards and Notices of Funding Opportunity remain on hold while federal program guidelines are reevaluated.
On the National Electric Vehicle Infrastructure (NEVI) program, which funds EV charging on corridors, Duncan said California’s NEVI plan had been submitted and initially approved but that approval was later rescinded and the program put on hold pending further guidance. He encouraged agencies to continue preparing projects so they are ready if and when NEVI funds are released.
Caltrans Chief Financial Officer Stephen Keck added clarification about state budgeting: Caltrans has unique long‑lasting appropriations and typically has up to seven years to encumber and expend appropriations, providing some flexibility for multiyear projects.
Why it matters: California depends on federal formula funds for large portions of its transportation program. While formula apportionments are intact for now, uncertainty in discretionary programs—including NEVI—could delay corridor electrification and other federal‑dependent projects unless state or local funds are available to bridge gaps.
What officials said: Duncan urged continued project preparation despite NEVI guidance holds. “There’s really no point in waiting for funds to be released if these projects are not ready,” he said. Keck said Caltrans’ appropriations can remain available for multiple years and that the department plans to manage cash flow to avoid disruption.
What’s next: Caltrans staff said they’ll continue to track federal actions and work with state offices to mitigate fiscal impacts. The commission will receive the fund estimate and further budget updates in coming months.
