States Freed from Repaying Fed Funds on Delayed Road Projects
Published Date: 5/30/2025
Rule
Summary
State Departments of Transportation no longer have to pay back federal money if they don’t start building or buying land for a road project within ten years after doing the early engineering work. This change wipes out the old rule that made them repay funds if the project stalled for too long. It’s a big win for states, giving them more time and less pressure on their budgets.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
No 10-Year Payback For DOTs
State Departments of Transportation no longer must repay Federal Highway Administration (FHWA) funds that were used for preliminary engineering if right-of-way acquisition or actual construction for the road project is not started within ten years. This final rule rescinds the part of the May 10, 2001 regulation that required repayment when a project stalled for ten years.
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Key Dates
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