AASHTO outlines path to more efficient project funding

May 21, 2025

The U.S. Department of Transportation (USDOT) received a clear message from one of its major partners, the American Association of State Highway and Transportation Officials (AASHTO), a nonprofit representing departments of transportation from all 50 states, the District of Columbia (D.C.) and Puerto Rico.

Of the many 10-question regulatory review submissions from stakeholders, AASHTO’s May response offers constructive and pragmatic solutions. While fully supporting federal goals such as environmental stewardship, domestic manufacturing and transparency, AASHTO maintains that certain regulations and processes are impeding efficient project delivery, introducing unnecessary costs, risks and delays—particularly for large or innovative infrastructure projects.

Key recommendations include simplifying the National Environmental Policy Act assignment process, adjusting value engineering thresholds and revising Buy America requirements to better reflect current industry capacities.

Other suggestions include aligning outdated or duplicative rules, streamlining the grants process, modernizing data reporting and delegating more authority to state DOTs.

If the department adopts AASHTO’s recommendations, federally supported transportation projects could become more predictable, capital-friendly and scalable—all critical factors for long-term investment strategies.

AASHTO’s feedback was part of the department’s response to President Donald Trump’s Executive Order 14219, signed earlier this year. The order directs federal agencies to identify and eliminate outdated, overly burdensome or inefficient regulations to improve government operations and reduce costs while maintaining safety and public protections.

Image by Alexandru Manole from Pixabay

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