Senate EPW questions FHWA on grant backlog, August redistribution and permitting delays

The Senate Environment and Public Works Committee heard testimony on FHWA’s fiscal 2027 budget and the implementation of the Infrastructure Investment and Jobs Act, with lawmakers pressing Administrator Shawn McMaster about stalled discretionary grants, staffing at state division offices, and steps to shorten environmental review timelines.

In opening remarks, Chair Capito said FHWA’s FY2027 request totals roughly $66 billion — about $65 billion from the Highway Trust Fund and $1.5 billion from the general fund — and warned that a large August redistribution (FHWA estimated about $8.5 billion) forces states into end‑of‑year scrambling and risks lower‑priority spending. She and other senators described a backlog of roughly 3,200 announced grant awards that were not yet obligated when the current administration took office and singled out a roughly $370 million lapse in prior contract authority as a recent problem.

Administrator McMaster, who testified under oath, said the agency has moved aggressively to obligate awards the department has cleared. He told the committee FHWA has obligated about $8.4 billion for competitive grants that have moved through departmental review and that roughly 53% of previously backlogged projects are now funded and underway. McMaster also highlighted internal reforms — simplified notices of funding opportunity, standardized application templates and NEPA procedural changes that expanded state NEPA assignment — and said FHWA has shortened average environmental assessment timelines by about six months across a set of agreements.

Still, several senators said program complexity, limited awardee capacity and late awards are constraining obligation rates for discretionary programs. Ranking Member White House pressed the administration over repeated “stop work” orders and alleged that the Department of Defense is holding up more than 250 wind projects on national‑security reviews, a claim he said indicates obstruction of clean‑energy projects. White House told McMaster that “under review” can appear to be a pretext for not obligating funds and demanded clearer explanations and a list of awards still pending departmental action.

McMaster responded that 90–95% of the DOT’s larger backlog has moved through departmental review and acknowledged a handful of remaining projects — including some CFI (Charging and Fueling Infrastructure) awards — are still being worked through the review process. He said FHWA will provide status updates and work with senators’ staffs to supply the requested lists and timelines.

Members pressed about specific programs and projects. Senators asked why some applicants were asked to reapply after NOFO amendments; McMaster said FHWA removed requirements from prior rounds to ensure project readiness and to prevent lapses (he cited Scenic Byways and a bridge‑planning NOFO). State delegations pressed for timely action on named projects: Oregon’s Hood River–White Salmon bridge and the I‑5 Columbia River replacement, California’s Bay Area and LA Metro TIFIA request, Nebraska and Ohio bridge portfolios, and Alaska‑specific priorities including the King Cove road and the Cooper Landing bypass. McMaster committed to follow up on each request and to work with project sponsors to complete environmental work and obligate funds when possible.

Committee members also raised pathway questions for reauthorization: whether formula funding should better reflect population growth (Utah), how to incentivize project readiness, use of credit programs such as TIFIA to leverage private capital, and whether to create or expand planning funding for rural regional transportation planning organizations (RTPOs). McMaster offered technical assistance and said the administration supports streamlining burdensome application requirements where possible.

On equity and compliance, senators asked about a recent re‑certification requirement for the Disadvantaged Business Enterprise (DBE) program tied to recent Supreme Court guidance; McMaster said re‑certification is necessary to align with the court’s decision and FHWA will work with states to minimize project delays.

The hearing closed with the chair requesting written questions be submitted by June 17 and FHWA’s responses returned by July 1. McMaster reiterated the agency’s commitment to continue working with states and committee members to resolve outstanding grant actions, accelerate project delivery and pursue permitting reforms that reduce unnecessary delay.

Ending: Senators left with commitments for written follow‑up on specific grant statuses, a pledge from FHWA to update states on redistribution estimates, and continued negotiations on permanent permitting reforms in forthcoming reauthorization work.