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Bend MPO flags federal grant freezes and regulatory uncertainty affecting local projects
Summary
At the March 4 TAC meeting, MPO staff warned that freezes on unobligated federal funds and potential regulatory changes tied to the Infrastructure Investment and Jobs Act are creating short‑term uncertainty for local transportation projects and programs.
Bend, Ore. — MPO staff told the Bend Metropolitan Planning Organization Technical Advisory Committee on March 4 that recent federal actions are freezing some unobligated grant dollars and creating regulatory uncertainty that could affect local projects and transit services.
Tyler Deakey, chair of the TAC and Bend MPO staff, said the MPO and partner agencies have been receiving “feedback from our Federal Highway partners as well as ODOT” and that “we're getting things changing and directives changing, sometimes on a daily basis and even sometimes twice a day.” Deakey said unobligated funding for electric vehicle infrastructure and many discretionary IIJA grants are currently frozen and that some congressionally directed spending coming into Bend is affected.
Deakey noted local impacts the TAC is already seeing: amendments to the State Transportation Improvement Program (STIP) were frozen as of the prior week and planned vehicle replacements for local transit providers were on hold. He said guidance on climate and equity requirements has been removed from some federal agency websites, creating uncertainty about how to proceed while agencies remain subject to related statutory obligations.
Why it matters: TAC members observed that federal freezes could convert previously funded program obligations into de facto unfunded mandates at the local level. A transit staff member told the committee that agencies remain legally required to meet ADA and other obligations even if related federal funding is paused, raising concerns about local budget shortfalls and potential exposure to liability.
Local reactions and next steps
TAC members said the situation appears likely to remain dynamic. The group heard that IIJA, the federal infrastructure law guiding many programs, expires in September 2026 and that both congressional legislation and federal regulatory changes could alter program priorities and eligibility in the next one to two years.
MPO staff said they will continue to monitor federal and ODOT guidance and will circulate a revised draft work program to the TAC; staff noted they had removed some language about climate and equity from that draft to reflect current federal guidance even though the underlying MPO work tasks remain unchanged.
Ending
MPO staff asked TAC members to review the forthcoming draft work program and to expect continued updates as federal guidance evolves. No formal actions were taken on this agenda item.
