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IIJA funding largely steady but discretionary programs and EV grants paused pending federal review, industry warns
Summary
Industry representatives told the Senate Transportation Committee that most IIJA formula funds continue, but discretionary grants — including portions of EV charging awards — have been paused pending new federal guidance; they advised states to reprioritize discretionary project lists and build coalitions to defend allocations.
At the close of the Senate Transportation Committee hearing, representatives from the American Road & Transportation Builders Association (ARTBA) and contractor‑engineering firm HNTB briefed members about the federal landscape for infrastructure funding and how California may be affected.
Dean Franks of ARTBA said the Infrastructure Investment and Jobs Act (IIJA) provided record federal investment and that most highway and transit formula funds continue to flow. "About 87 percent of the money goes out via formula; 13 percent is discretionary," he said. He told the committee that California has received major formula increases since the law and that many counties already have federally supported projects in place.
At the same time, Franks and HNTB's representative cautioned that several discretionary grant programs have been paused or are under review by the U.S. Department of Transportation after the change in federal administration. Franks described the NEVI (National Electric Vehicle Infrastructure) program and some discretionary EV awards as "on pause" while the federal government prepares updated guidance and asks states to revise plans. HNTB urged state and local agencies to reprioritize projects now — emphasizing safety, resiliency and core asset repairs — so submitted applications align with the administration's likely priorities when discretionary awards resume.
Both witnesses noted that the House of Representatives has passed a continuing resolution that includes an anomaly that preserves FY2025 transportation formula increases; the panelists said that Senate action would be needed to finalize funding for the fiscal year. ARTBA emphasized a continuing federal Highway Trust Fund challenge over the next reauthorization cycle and said an estimated $250 billion of revenue will be needed to sustain IIJA‑era spending levels without additional revenue sources.
Ending: Private‑sector witnesses urged California agencies to assemble coalitions and rethink discretionary grant portfolios while continuing to execute formula‑funded projects, and they recommended engagement with the USDOT once new guidance for paused programs is released.
