Impacts of Executive Actions on Public Transportation
Introduction
This blog post contains notes taken during the APTA webinar titled “Impacts of Executive Action on Public Transportation.” The APTA webinar details can be accessed at APTAGateway.com with an APTA member login.
Webinar date: February 20th, 2025
Webinar Panelists:
• Paul Skoutelas, President and CEO, APTA
• Ward McCarragher, Vice President - Government Affairs and Advocacy, APTA
• Taria Barron, General Counsel, APTA
• Stacie Tiongson, Senior Director - Government Affairs and Advocacy, APTA
Disclaimer
This document was prepared by Olivia Krishnaswami, director of the animation studio Aloe by Olivia. The author of this document is not a lawyer. This document does not contain any legal advice.
APTA Webinar Notes
Executive Orders
A presidential memo directed federal departments and agencies to end all DEI-focused preferences, programs, activities, etc.
This means agencies must include specific terms in contracts or grant awards to certify that contracted parties don't operate any "illegal DEI programs," with possible fees of up to 3x the contract amount for noncompliance.
Executive Order 14159 directs DOJ and DHS to ensure sanctuary jurisdictions do not receive federal funds.
There are multiple ongoing court cases challenging the executive orders. There are questions about constitutionality, executive branch authority, and free speech, among other things.
USDOT
A USDOT memo directs the department to cancel programs that relate in any way to climate change, "greenhouse gas" emissions, racial equity, gender identity, "diversity, equity, and inclusion" goals, environmental justice, or the Justice 40 Initiative.
DOT is shifting how they consider cost-benefit analysis in grants, lending, and policies. One rule says funding can't be used for projects that are "purely local in nature." This brings up questions for transit since some critics consider transit a local initiative. APTA argues that the economic benefits of transit have federal significance.
Q&A:
What’s happening with the DBE program?
The DBE program is ongoing but will likely see changes. Awaiting guidance from DOT.
Do any of the executive orders define what is covered under the phrase “DEI programs?”
Any sort of race or sex-based preferencing in terms of hiring and promotion, contracting, doing business.
Do we anticipate this memo to impact existing CIG project ratings, or be built into future guidance? Would new criteria require an act of congress?
One possibility: for projects with an existing grant agreement or small start, there would be a provision that would allow federal government to alter/unilaterally adjust agreement under certain conditions. Would depend on whether that is in the scope of agreement.
The rating process is typically for projects that are still in the pipeline. The FTA has guidance for how they administer the CIG program. Will need to change their rating guidance to do that. Typically, it has been done through a public notice and comment process. Not clear if they could do that without the public comment period.
Has APTA done any analysis of what the grantees provision would mean for SSOAs with countervailing laws and regulations? Would they need to return grant funds?
Have not done that analysis. Some of that is playing out in federal courts. Sanctuary jurisdictions, for example. States and cities have different laws than federal government.
Locally, jurisdictions will decide how to move forward. Some will likely continue to prioritize DEI on a local level, while some will not.
Information compiled by Aloe by Olivia
