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ALDOT: FY26 plan begins without federal funding as shutdown threatens lettings and projects

Joint Interim Committees · October 23, 2025
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Summary

ALDOT told the Joint Interim Committees that the department is starting FY26 with no federal funding yet because of the federal shutdown, putting scheduled lettings and project timelines at risk; staff detailed program‑level funding, match obligations and contingency plans.

ALDOT chief engineer Ed Austin told the Joint Interim Committees that the department is starting fiscal year 2026 without federal funding as a result of the federal government shutdown, and warned that prolonged delays could force changes to planned project lettings.

"Well, this year, we're starting without any federal funding at all," Austin said in his presentation, adding that the department is tracking whether a short continuing resolution or a full appropriation will materialize.

The department told members it has 28 projects scheduled for the November letting, approximately $115 million in total estimated construction value and roughly $90 million of that from federal sources; ALDOT earlier took steps to lock in several planned November projects before the shutdown. Austin said if the shutdown continues for several more weeks, ALDOT may need to trigger requirements for the December letting because of advertising and bid‑acceptance timelines.

Austin gave a program‑level breakdown the committee could rely on for planning: GARVEE bond proceeds, allocations from the Rebuild Alabama Act, Appalachian Development Highway System receipts and aeronautics funds administered through the FAA. He also described federal program categories—aid to local governments, safety, interstate maintenance, resurfacing, bridge, NEVI (electric vehicle infrastructure, administered by ADECA), carbon reduction and PROTECT formula funds—and identified the department's expected match obligations.

On a committee question whether a roughly $19 million matching pool was tied to a single project, Austin replied the amount represents a historic, programmatic level ALDOT has used to accelerate multiple projects and is not reserved for any one job.

Committee members asked for continued updates on the status of federal appropriations and how any prolonged shortfall would affect the letting calendar. ALDOT said it will report changes to the committee as federal action becomes clearer.