DOT Funding Offices: What’s Changed in 2025

The United States Department of Transportation has found itself in the spotlight over the past few weeks as shutdown-induced air travel delays and Flight Controller shortages dominate news headlines. This makes now as good a time as any to focus on some of the current and planned changes in the agency, as the Trump Administration and Transportation Secretary Duffy close out their first calendar year. While new transportation priorities have gone relatively under the radar compared to more demonstrative changes in other agencies, there are still some very noticeable new priorities and regulations. 

CHANGES 

EV Projects  

With many of the Infrastructure Investment and Jobs Act (IIJA) programs facing intense scrutiny from the administration, and subsequently expiring in Fiscal Year 2026, no project category may be a bigger loser going forward than EV projects.  

According to Politico, up to $283 million in federal funding for electric vehicle charging stations could expire at the end of the fiscal year. Many of those likely unobligated funds were designated for projects from the Charging and Fueling Infrastructure Program, which was created to help expand EV charging infrastructure across states. The Administration’s lack of interest in Electric Vehicle funding is not surprising, as shown by “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies,” from the Unleashing American Energy Executive Order in January. 

Motor Vehicles 

The Department of Transportation has canceled millions of dollars across multiple grants, including BUILD/RAISE and Safe Streets for All winners, deeming the projects “counter to DOT’s priority of preserving or increasing roadway capacity for motor vehicles.” These include projects that feature bike lanes and pedestrian paths, and the cuts signal the Department’s priority of automobile use. 

Wind Projects 

The Trump Administration has made clear through both terms its strong dislike of offshore wind projects. This was summarized through the withdrawal or cancellation of $679 million in grants going to wind projects. This includes $427 million retracted from an INFRA grant and $252 withdrawn from PIDP grants. 

PRIORITIES 

Shipbuilding 

Shipbuilding is a major priority of the Department of Transportation, along with other agencies such as the Department of War and the Department of Labor. An Executive Order titled Restoring America’s Maritime Dominance states that the policy of the United States is “to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.” From a DoT funding perspective, this likely includes programs such as the Small Shipyard Grant Program and the Federal Ship Financing (Title XI) Program. There is also the prospect of Maritime Prosperity Zones, which are modeled after Opportunity Zones and are designed to attract private investment in U.S. maritime industries by using tax and regulatory incentives. 

FAA 

Magnified by its current difficulties, significant funding for Federal Aviation Administration Air Traffic Control staffing and facility modernization is a big priority. The Senate Transportation proposed Spending Bill released in July includes $22 billion for the FAA, which is $1.4 billion above the current level. This would include the plan for hiring thousands more air traffic controllers, as well as modernizing FAA air traffic facilities and radars. The Airport Improvement Program is expected to maintain similar levels of funding, with grants going towards infrastructure projects for public-use airports. 

Please view our updated chart on the different Department of Transportation Agencies and the types of federal funding they offer: