USDOT Pulls Funding from Projects not “Car-Focused” Enough in Connecticut, New Mexico, Illinois

The department is sending letters to local officials rescinding multimodal grants, saying the money will instead be focused on projects that “promote vehicular travel.”

1 minute read

September 18, 2025, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Group of people walking on paved walkway in Naugatuck River Greenway on sunny day next to green field.

The Naugatuck River Greenway in Connecticut lost funding in favor of more car-oriented projects. | Naugatuck Valley Council of Governments / Naugatuck River Greenway

Communities around the country are receiving notices from the U.S. Department of Transportation that grants they were previously awarded for multimodal projects are being rescinded, reports Kea Wilson in Streetsblog USA.

According to local officials in New Mexico, USDOT’s letter notifying them that the department would no longer provide funding for the Albuquerque Rail Trail project stated that the money would go toward more “car-focused” projects. In Connecticut, “Naugatuck Valley Council of Governments Executive Director Rick Dunne told CT Post that DOT's rescission letter noted ‘they’re focusing multimodal grant programs on projects that promote vehicular travel.’” In the case of McLean County, Illinois, no reason for the grant denial was given other than that the awarded project “no longer aligned with [the department's] priorities.” 

Wilson notes that this is a developing story and that unconfirmed reports indicate that more grants are being clawed back as part of the administration's efforts to reduce funding for projects that don't promote driving. “Experts say the Trump administration has been testing the legal limits of its ability to rescind, delay, or demand significant modifications to previously announced awards for sustainable and equitable transportation since it re-entered the White House, though the administration is being sued for the allegedly illegal behavior.”

Wednesday, September 17, 2025 in Streetsblog USA

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

5 hours ago - Zachary Whalen

Overlapping highways

The state-sanctioned urbicide of Austin

People don’t kill cities. Freeways do.

September 8, 2026 - Benjamin Schneider

The Hoover Dam blocking the Colorado River. The river's water level is noticeably low. The cliffs surrounding the blue water are brown and jagged.

US to reduce Colorado River water deliveries to Mexico

A new Colorado Treaty amendment reduces Mexico’s Colorado River water allocation by 250,000 acre feet.

September 11, 2026 - The Arizona Republic

A cluster of wind turbines beneath a stormy sky, above a forest where the leaves are beginning to change colors.

5 New England states march closer to 800 megawatt wind energy project

Securing federal approval for the project may be complicated under the Trump administration, which has historically been hostile towards domestic wind power.

1 hour ago - Inside Climate News

People boarding a bus on Maryland's Orange Route.

Baltimore to break ground on $50 million Transit Priority Project

The project will bring faster bus trips, safer streets and better bike connections to Baltimore.

2 hours ago - Mass Transit

A brick building with a circular sign with the Airbnb logo hanging off of it.

Airbnb launches $250 million 'last-dollar financing' housing accelerator, makes first investment in Austin

The company will put $6.4 million towards affordable housing development in Texas’ capital.

3 hours ago - Smart Cities Dive

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.