Federal transportation and telecommunications policy is undergoing a dramatic transformation as the Trump administration and the 119th Congress implement sweeping regulatory, funding, and structural changes. From a freeze on thousands of infrastructure grants to a restructured Federal Communications Commission (FCC) agenda and a renewed push for air traffic control modernization, the administration is rapidly pivoting toward cost-cutting, deregulation, and cultural conservatism. Officials are targeting environmental reviews, rolling back equity initiatives, and exploring new user-based funding models—all while legislative deadlock casts uncertainty over future spending bills.
Hill Deadlock Threatens Infrastructure Funding Progress
In a recent Venable webinar, senior policy advisor John Drzewicki offered a stark assessment of current legislative conditions, noting that the budget reconciliation process remains gridlocked. “The Senate and the House are on different wavelengths right now about how to go about this process, how much to cut,” he said. Disruptions in the House, including a procedural rebellion over proxy voting, have compounded the delays. Still, Congress is soliciting feedback for a new highway bill, Drzewicki said, which traditionally garners bipartisan support.
FCC Tightens Grip on Media, Loosens Broadband and Transportation Tech Rules
Craig Gilley, a partner at Venable and head of the firm’s Telecommunications Practice Group, detailed a dual-track strategy at the FCC under its new chairman, Brendan Carr. Carr, Gilley said, is launching investigations into broadcast networks. At the same time, Carr is pushing to roll back outdated rules, ease broadband grant requirements, and reduce environmental reviews. “He has initiated a broad review of all commission rules and asked the public to identify rules that no longer make sense,” Gilley said.
Crucially for the transportation sector, Carr reaffirmed FCC backing for C-V2X rules, which govern how connected vehicles communicate with each other and with road infrastructure—an important step toward fully connected and autonomous transportation systems. “The new technology will allow cars and all sorts of transportation vehicles to speak to each other…to the roads and to the infrastructure,” Gilley explained. The FCC is also investigating new technologies to serve as backups for vulnerable GPS signals and exploring regulatory changes to support drone aircraft and advanced air mobility systems.
DOT Freezes Grants, Emphasizes Safety, and Strips Equity Mandates
Transportation Secretary Sean Duffy has directed a wide-ranging review of federal grants, freezing awards for more than 3,000 projects—many tied to climate, diversity, and equity goals, said Marco Sylvester, a senior policy advisor at Venable. “The DOT staff is going through all of those projects and kind of looking for keywords,” he said. Projects that mention “electric vehicles,” “bike lanes,” or “climate change” are flagged for scrutiny. In a sharp pivot from the Biden administration, DOT policy now prioritizes communities with “marriages and birth rates higher than the national average,” Sylvester said, and revives Opportunity Zones as preferred recipients of funding.
Meanwhile, following a January mid-air collision at Reagan National Airport, Duffy is seeking a $10 to $12 billion investment to overhaul the nation’s air traffic control system. “It’s not an exaggeration, [the system] really does still have floppy disk computer systems in it,” said Venable partner and former secretary of transportation Jim Burnley. He added that DOT must also resolve deep deficits in the highway trust fund, raising the question of whether electric vehicle owners should be subject to new mileage-based user fees. “The highway trust fund has been under water…for a decade-plus now,” Burnley said. “It really is just a paper exercise.”
As regulatory and legislative dynamics continue to evolve, panelists cautioned that stakeholders should prepare for both rapid policy shifts and procedural slowdowns. “There is a fundamental debate…whether we still have a highway trust fund…and who should pay,” Burnley warned, underscoring the scope and uncertainty of the administration’s transportation agenda.
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