Thursday, January 23, 2025

Trump halts billions in Biden-era infrastructure funding with executive order

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An executive order from Donald Trump has paused disbursements for infrastructure and climate initiatives launched under Joe Biden, threatening ongoing projects across the U.S.

Timothy Cama, Kelsey Tamborrino, Jessie Blaeser, Chris Marquette and James Bikales report for POLITICO.


In short:

  • Trump’s order directs federal agencies to stop disbursing funds from Biden’s 2021 infrastructure law and 2022 climate statute, affecting transportation, energy and broadband projects.
  • Legal and policy experts warn this move could breach contracts and violate the Impoundment Control Act, with projects in progress left unfunded or stalled.
  • Some Republicans express concern over the impacts, while others frame the pause as a review of spending priorities.

Key quote:

“It’s certainly even a step further than we thought the administration would go. Now they’re violating contract laws as well as the Constitution.”

— Charlie Ellsworth, senior adviser to the Checks and Balances War Room of the Congressional Integrity Project

Why this matters:

Halting infrastructure and climate funding disrupts critical projects meant to address decaying transportation systems, expand renewable energy and boost economic resilience. This decision, which many regard as illegal, could lead to delays, lawsuits and financial strain on states, especially those reliant on federal reimbursements.

Read more: Trump aims to undo Biden’s climate and energy efforts

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