{"id":28792,"date":"2025-01-28T11:50:31","date_gmt":"2025-01-28T19:50:31","guid":{"rendered":"https:\/\/essential.construction\/news\/trump-funding-freeze-leaves-iija-ira-projects-in-limbo\/"},"modified":"2025-01-28T11:50:31","modified_gmt":"2025-01-28T19:50:31","slug":"trump-funding-freeze-leaves-iija-ira-projects-in-limbo","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/trump-funding-freeze-leaves-iija-ira-projects-in-limbo\/","title":{"rendered":"Trump funding freeze leaves IIJA, IRA projects in limbo"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">7 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"http:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1738089002\/news\/text_to_speech\/trump-funding-freeze-iija-ira-projects_szobwy.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Last week, President Donald Trump told federal agencies to stop disbursing Infrastructure Investment and Jobs Act and Inflation Reduction Act funding, including money that Congress already authorized. The move has thrown climate and infrastructure projects at various stages of development into uncertainty, as his agenda regarding federal government contracts and grants continues to rapidly evolve.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Trump\u2019s Jan. 20 \u201c<\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/unleashing-american-energy\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Unleashing American Energy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>\u201d order to pause and review funding processes has \u201csignificant implications for the implementation of the IIJA and IRA,\u201d according to Washington, D.C.-based law firm Crowell, and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.crowell.com\/en\/insights\/client-alerts\/navigating-the-trump-administrations-pause-on-iija-and-ira-funding-key-implications-for-infrastructure-stakeholders\" target=\"_blank\"><span><span><span><span><span><span><span><span>may lead to project delays, terminations<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> and broader economic uncertainty.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Its precise implications may not be fully understood for months, \u201cand this uncertainty alone is likely to disrupt infrastructure projects and give rise to claims,\u201d according to an alert Crowell partners shared with clients Monday.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhether the pause is temporary or becomes permanent, this action potentially could halt billions of dollars in obligated funding for infrastructure projects that already are underway, including those already under construction,\u201d according to Crowell.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Another major announcement this week around funding has led to more confusion. A Monday internal <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/media.licdn.com\/dms\/document\/media\/v2\/D4E1FAQEBzq-1QiWeBg\/feedshare-document-pdf-analyzed\/B4EZSq3yJfG0Ag-\/0\/1738033539562?e=1738800000&amp;v=beta&amp;t=OVbBPq4Vc_Zsq4dtj9cvo09crvKXxFVsd81MCgJ3txo\" target=\"_blank\"><span><span><span><span><span><span><span><span>memo from the Office of Management and Budget<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> ordered a pause on all federal grants and loans, starting at 5 p.m. Tuesday. Federal agencies must temporarily halt funding and agency activities that may be implicated by the executive orders, \u201cincluding, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal,\u201d according to the memo.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nonprofit groups and a small-business organization have <a rel=\"nofollow noopener\" href=\"https:\/\/www.cnbc.com\/2025\/01\/28\/lawsuit-seeks-to-block-trump-funding-freeze.html\" target=\"_blank\">already filed a lawsuit challenging the directive<\/a> and asking a judge to temporarily block the funding freeze, CNBC reported.\u00a0In addition, the attorneys general of New York, California, Illinois, Massachusetts, New Jersey and Rhode Island were planning an announcement related to the funding pause this afternoon.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>There are many open questions about the scope and effects of Trump\u2019s orders and how they will be implemented, but it\u2019s clear they will affect the contractual and other legal rights of federal contractors, Daniel Ramish, partner at Dallas-based law firm Haynes Boone, said in an email.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThis will have a broad effect on federal contracts, grants and other assistance agreements in the specified areas and will take time to unpack,\u201d according to Ramish. \u201cContractors and assistance recipients should follow these fast-moving actions closely and consider how their awards may be affected.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Orders and clarifications<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Section 7 of Trump\u2019s Unleashing American Energy order directs federal agencies to halt all disbursements under the two laws while they \u200b\u201creview their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law.\u201d It gives agencies 90 days to report how the frozen spending aligns with the new administration\u2019s energy goals.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The order\u2019s wording was unclear to many, prompting the Office of Management and Budget to issue a Jan. 21 <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.whitehouse.gov\/briefings-statements\/2025\/01\/omb-memo-m-25-11\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>memo limiting the directive<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> to programs that Trump has termed part of a \u201cGreen New Deal\u201d in Section 2, and noting that \u201cagency heads may disburse funds as they deem necessary after consulting with [OBM].\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, Section 2 of the Unleashing American Energy order does not discretely list portions of the two laws for which money should be paused. Rather, it uses broad language to direct agency actions, touching on issues like energy exploration, non-fuel minerals, protecting economic and national security and \u201celiminating the electric vehicle mandate.\u201d\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Section 7 does specifically cite funds to build EV charging stations, like the $2.5 billion Charging and Fueling Infrastructure Discretionary Grant Program and the $5 billion National Electric Vehicle Infrastructure Formula Program.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Provisions of Trump\u2019s executive orders will likely face legal challenges in the coming months, according to Ramish.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Project freeze scope still unclear<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Even with the Jan. 21 clarifying memo, the scope of Trump\u2019s Unleashing American Energy directive is unclear as to whether it is limited to certain types of infrastructure expressly identified in the order, or more broadly to all projects funded under the IIJA and IRA, according to Crowell.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhile OMB\u2019s [Jan. 21] statement suggests that the Executive Order will only impact funding of what it calls \u201cGreen New Deal\u201d projects, neither OMB nor the Executive Order clearly define the characteristics of such projects, leaving open to interpretation whether infrastructure projects for roads and bridges, broadband, and other traditional infrastructure could be impacted, at least in part,\u201d according to Crowell.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>As of December, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-impact-infrastructure-construction-2025\/736597\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>$294 billion in IIJA funds remained unallocated<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. While some experts expected the Trump administration to halt spending that federal agencies have yet to dole out, the executive order leaves unclear whether the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.canarymedia.com\/articles\/policy-regulation\/trump-orders-freeze-on-inflation-reduction-act-infrastructure-law-funding\" target=\"_blank\"><span><span><span><span><span><span><span><span>freeze will also encompass spending that is legally committed under contract<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, according to a Canary Media article.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Indeed, Trump and incoming OMB Director Russell Vought have argued that the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.forbes.com\/sites\/alisondurkee\/2025\/01\/23\/can-trump-overrule-congress-spending-decisions-what-to-know-as-he-pauses-infrastructure-and-climate-change-funding\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>president has expansive power to cancel<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> congressionally authorized spending, a move known as impoundment, according to Forbes. That goes against the prevailing interpretation of federal law: that presidents cannot unilaterally cancel congressional funds.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While much is in flux at this stage, Trump\u2019s first term and his executive orders issued over the last week offer some clues for what federal contractors can expect, according to Ramish. Historically Trump emphasized efficiency and results-oriented accountability in federal grants, and his administration has indicated that it intends to implement policies favorable to American industry and to carry out a deregulatory agenda.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper show-small hide-large\" id=\"mobile-carousel\"\/>\n<p><span><span><span><span><span><span>The <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/trump-executive-orders-energy-permits-nepa\/738089\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>provisions of the Unleashing American Energy<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> order \u201cdirected at the National Environmental Policy Act (NEPA) regulatory process, including the rescission of the NEPA regulations, are an early example of that agenda, which may benefit federal construction projects,\u201d said Ramish.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>However, in some cases, contracts or grants may be terminated if they are not aligned with the new administration\u2019s priorities, Ramish said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Regardless of how the orders eventually shake out, any disruption in funding could have immediate effects on contractors and suppliers engaged on infrastructure projects funded by the IIJA and IRA, according to Crowell.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cDisruptions in cash flow to these projects will create uncertainty and raise several potential impacts,\u201d per Crowell, including project delays and cancellations, various legal and contractual issues and continuing payment obligations despite the funding freeze.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/trump-funding-freeze-iija-ira-projects\/738504\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 7 min This audio is auto-generated. 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