# USDOT Reduces Multimodal Transportation Funding

The U.S. Department of Transportation (USDOT), under Secretary Sean Duffy, has implemented federal austerity measures that significantly reduce funding for multimodal transportation infrastructure projects nationwide. This shift prioritizes car-centric roadways while cutting investments in bike lanes, pedestrian safety, and public transit initiatives. As a result, local governments such as the City of San Diego and jurisdictions including Albuquerque and Connecticut are facing challenges in maintaining and developing safer, inclusive transportation options. Notably, an $11.5 million federal funding allocation for the Albuquerque Rail Trail project was rescinded, leading to legal action to recover those funds.

- **Why this matters:** Procurement professionals should anticipate reduced federal funding opportunities for multimodal and active transportation projects, impacting contract availability and project scopes.
- Local and state agencies may seek alternative funding sources or public-private partnerships to support bike, pedestrian, and transit infrastructure development.
- Contractors specializing in car-centric roadway projects may see increased demand, while those focused on multimodal infrastructure should evaluate shifting market dynamics.
- Organizations involved in transportation safety and infrastructure planning should consider the implications of funding reallocations on project prioritization and compliance requirements.

**Jurisdictions:** federal
**Industries:** Transportation, Construction & Infrastructure
**Topics:** Physical Infrastructure, Regulatory Compliance
**Published:** September 15, 2026

### Government Entities
- U.S. Department of Transportation (USDOT)
- City of San Diego
- City of Albuquerque
- Connecticut Department of Transportation
- McLean County

### Key Quotes
> Safe roads are ones with multiple ways of getting around. E-bikes, bicycles, walkers, strollers, wheelchairs, rollerstakes, skateboards, scooters and feet are all legitimate modes of transportation.
> — Sean Duffy, Secretary of Transportation

### Sources
- [Op-ed: Federal austerity is funding what kills us | Planetizen Features](https://www.planetizen.com/features/138424-op-ed-federal-austerity-funding-what-kills-us) - Planetizen