States Have More Power Than They Think to Fund Sustainable Transportation - Streetsblog USA

"While the Trump administration has done its best to undermine state authority - from clawing back grants to revoking California's Clean Air Act waivers - state leaders can still make progress on clean transportation. And even after the administration's illegal freeze on funds and massive program cuts via the "One Big Beautiful Bill Act," there are still unspent pockets of federal money available to states."

"Transportation funding is one of the biggest chunks of money that states receive from the federal government. The National Highway Performance Program alone has contract authority for $30 billion annually from 2022 to 2026. The U.S. Department of Transportation disburses federal dollars primarily as formula funds, which are allocated to state and local governments based on a blanket formula that takes into account factors like population size, number of bridges, and maintenance needs."

"Now, it's a matter of using this authority, identifying these funds, and channeling them effectively. That authority is enshrined in the Bipartisan Infrastructure Law that expires at the end of 2026. Historically, both parties have supported a state's right to decide how to use federal transportation funds. But today, as the Trump administration looks to consolidate power and undermine states, it is not clear what the next surface transportation reauthorization will hold. States must act quickly and decisively to maximize the impact of available funds."

Federal transportation funding includes large formula and contract-authority programs that states can redirect toward cleaner travel modes. States retain authority under the Bipartisan Infrastructure Law to transfer highway dollars to projects such as public transit, biking, and walking, and some federal funds remain unspent despite administration cuts and freezes. Historically both parties have supported state discretion over transportation dollars, but federal policy uncertainty and efforts to consolidate power increase urgency. States should identify underutilized federal funds, use transfer authorities now, and channel investments quickly to expand healthier, more accessible transportation systems before key authorities expire at the end of 2026.

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