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Committee hears risk to major PennDOT projects if discretionary federal grants are paused
Summary
PennDOT officials told lawmakers federal continuing‑resolution uncertainty could pause discretionary awards and delay or put at risk large projects including the I‑83 Susquehanna bridge grant, NEVI electric‑vehicle charging funds and passenger‑rail service planning.
Pennsylvania Transportation Secretary Mike Carroll told the House Appropriations Committee on Feb. 20 that discretionary federal awards — unlike obligated formula funds — could be paused if Congress extends a short‑term continuing resolution or if the U.S. Department of Transportation reconsiders unobligated awards.
Carroll described three program types: obligated federal funds (contractual and not at immediate risk), discretionary awards where an award has been announced but not yet obligated, and other competitive grants. He said PennDOT considers obligated funds a contractual obligation between the commonwealth and the federal government; discretionary awards that have not been obligated are “in question” if Washington pauses funding.
What’s at stake: Carroll said the Federal Highway Administration awarded $500 million for the I‑83 Susquehanna River bridge — the single largest discretionary grant PennDOT has won — but that those funds are not yet obligated. If the federal award is rescinded, PennDOT would still need to build the roughly $1.2 billion bridge and Carroll said the commonwealth would have to decide how to replace the federal share.
NEVI and passenger rail: Carroll said Pennsylvania was allocated about $170 million nationally under the National Electric Vehicle Infrastructure program; $70 million of that has been obligated and delivered to charging stations already in service, with more stations under construction. He called the obligated NEVI funds a contractual commitment. The remaining $100 million for NEVI and other discretionary rail awards — including a $143 million competitive award connected to new passenger-rail service proposals — remain at risk until obligations are recorded.
Passenger rail projects are at different stages: Carroll said the Scranton (restoration to New York) project has advanced to the Federal Railroad Administration service‑development plan step (one of five nationwide at that stage), while the Reading/Philadelphia (Redding) corridor remains pending FRA approval. Several committee members pressed Carroll about a recent decision by Amtrak to cut a bus connector for Reading service, and Carroll reiterated his and the governor’s advocacy in Washington for passenger rail awards but said final decisions rest with federal agencies.
Federal timing: Multiple legislators asked whether the administration in Washington — and the change in presidential administrations — might alter discretionary awards. Carroll said decisions on discretionary awards are made at the federal level and that PennDOT expects federal agencies to honor awards but cannot compel them to do so.
Ending: Lawmakers requested lists of unobligated discretionary awards and the projects that would be affected by a federal pause; Carroll said PennDOT would provide those details and continue advocacy with federal partners.
