About a month into the Trump Administration, Executive Orders that affect the current state of the infrastructure industry are being signed and implemented. Late last year, we took a deep dive into everything Trump previously said on this issue, looking at how infrastructure construction could be impacted through the next four years of his administration.
As more information moves from the realm of possibility into reality, it’s time for an updated perspective.
IIJA + IRA Funding: With the new administration comes a new vision of what is important for government spending. Under the Trump Administration plans, we already see a reduction or complete halting of support for high-speed commuter rail, onshore and offshore wind, and subsidies and grants for EV purchases and charging station construction included under both bills. Whether or not Trump’s actions run afoul of the Impoundment Act will remain to be seen, but the American Association of State Highway and Transportation Officials (AASHTO) has recently asked the U.S. Department of Transportation (USDOT) to maintain consistent funding and approvals for state transportation projects in light of the looming construction season.
These decisions are all part of a proposed shift in focus to energy independence in the U.S. and the need for significant investment in new energy sources that balance need with environmental impact. Enter natural gas and nuclear energy.
Additionally, with AI no longer “on the horizon” and DeepSeek a new challenger to U.S. AI development, the country will be pushed to accelerate plans for AI adoption. With that comes an insatiable demand for energy, as the construction sector is already past the ramp-up phase for building data centers. With more data and AI centers, comes more need for power and more need for water. As the primary cooling mechanism for data centers, access to water and discharge of cooling water will begin to take the main stage in the proposed project spotlight.
Finally, we’d be remiss if we didn’t mention traditional infrastructure like roads and bridges. As the administration withdraws from green initiatives, state officials are lobbying Congress to repurpose green funding for road and bridge repairs and other more traditional infrastructure projects. As the administration has stated it intends to continue improving the current infrastructure and creating new infrastructure to meet the demands of new and burgeoning cities and towns, states are hopeful that pushing for more traditional initiatives will help retain their funding.
DBE Tracking: The DBE Program is codified under 49 CFR Part 26 and has been repeatedly reauthorized by Congress since its inception in 1983, most recently in the IIJA Bill in 2021. The recent Executive Order to halt the dispersion of IIJA and IRA funding doesn’t appear to directly impact the DBE community, but may be a step toward more scrutiny from Congress on the DBE Program.
DOT Civil Rights Offices are typically charged with monitoring Title VI of the Civil Rights Act of 1964 which, as amended, prohibits discrimination based on race, color, and national origin. With funding on hold for certain projects that might be affected by the administration’s evolving priorities around DEI initiatives, the DOTs are unsure of what will happen in the future regarding the DBE Program.
Funding Based on Marriage + Birth Rates: The announcement by the DOT of tying grant funding to marriage and birth rates came in the middle of a flurry of executive activity. It would seem that the administration is leaning toward rewarding communities that seek to prioritize marriage and births within the U.S., with the potential outcome of providing fewer resources to communities with different priorities.
This administration has frequently stated its positions on births, birth rates, marriage, and their intention to tie that to spending and the will of the voters. It remains to be seen how this will be achieved and whether it’s achievable without running into barriers of long-standing legislation. For now, we don’t see a major impact, as population size and growth rates have always been part of the formula for grants and funding.
There’s also much discussion on how tariffs may impact construction material costs, as we covered previously, but we’re going to hold off on further analysis until we see how the current 30-day pause shakes out. For more deep dives into how the current administration’s decision will impact the infrastructure industry, subscribe to Deconstructor, our quarterly newsletter.
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Authors
Darcy Lewis
Senior Communication Specialist
A long-time fan of words in all their forms, Darcy is a part of the Corporate Communications team at Infotech. She loves her community, the city of Gainesville and her alma mater, the University of Florida.