A Texas federal court strikes down a FHWA regulation—in line with AGC litigation support—that would have diverted federal-aid highway construction funding to more non-construction uses, like the purchase of buses, Amtrak cars, and EV charging stations.

On March 27, a federal judge in Texas, agreed with AGC, and struck down the rule that would have required states to measure and reduce greenhouse gas emissions. This rule would have forced states to spend their federal-aid highway funds, meant for road and bridge construction, to pay for more buses, Amtrak trains, and electric vehicle (EV) charging stations (i.e., non-construction activities).

FHWA claimed that they had the authority to issue this rule, even though AGC and others disagreed since Congress has repeatedly debated providing the agency with that authority and repeatedly rejected it, including in the Infrastructure Investment and Jobs Act (IIJA). Now that the rule has been vacated, the Biden Administration has seven days to file an appeal.

On February 20, AGC and the American Road & Transportation Builders Association (ARTBA) jointly filed an amicus brief to the court in support of such a ruling. The groups also filed such a brief with a federal court in Kentucky, which is also poised to rule on the regulation as well.

Thank you for all of your help with sending in action alerts and for your contributions to the Construction Advocacy Fund which made AGC’s involvement in this lawsuit possible. We will keep you updated on any appeals and subsequent rulings that are file going forward.

For more information, contact Leah Pilconis at [email protected] or Alex Etchen at [email protected].