$500M in federal funding delays could affect North Texas transit projects

Regional leaders are shoring up some North Texas transit projects with interim funding since nearly $500 million in approved federal money hasn’t been received.

The Regional Transportation Council, an independent policy group of the North Central Texas Council of Governments made up of elected and appointed officials, approved $400,000 on Sept. 11 to support transit-oriented developments as well as projects that support land use, bike and pedestrian routes, and safety. 

Michael Morris, transportation director for the council of governments, said delays at the federal level prompted the interim funding request — and other projects totaling $500 million could be delayed or even eliminated if the federal dollars are further delayed.

“It’s certainly taking a little longer than I thought,” he said.

Per federal rules, the council of governments must pay invoices within 30 days and then seek reimbursement. Those bills will add up and could hamper the council’s ability to pay for future transit projects, Morris said.

More delays could occur after a Wednesday memo from the White House budget office told federal agencies to prepare plans for mass firings should the government shut down, CNN reported.

Federal funding concerns are prompting the Fort Worth City Council to consider spending $100,000 to retain a law firm as outside counsel for the issue, according to the Sept. 30 council agenda.

Morris wondered what effect a potential shutdown could have releasing other promised funds for projects. The council of governments is still awaiting reimbursement for some invoices submitted as far back as 2022, including a $34 million sidewalk project in southern Dallas.

Grants are written about six to eight months before they are submitted to the state for approval. Those applications then are sent to federal transportation authorities who issue a notice to proceed with construction work if approved.

Morris said council of governments’ staff may need to submit requests even sooner than before.

“Projects could be delayed or may never happen,” he said.

Council of governments staff is working with the Texas Department of Transportation to access approved federal funding for staff expenses to advance the regional initiatives.

“The funding agreement has been executed; however, the timeline for receipt of federal authorization to begin spending funds under the agreement is unknown,” according to a RTC report.

The interim funding approved Sept. 11 allows programs to continue until federal funding is received, officials said.

As North Texas’ population booms with a projected 4 million residents expected over the next 25 years, transportation leaders plan to develop more mixed-use, transit-oriented developments that provide denser housing.

Trinity Metro, Fort Worth’s transit agency, is hiring a director of economic development to develop strategies for developments near train stations and key transit corridors as a TEXRail expansion is planned. The agency has seven train stations to develop with an eighth planned in the Medical District. Some land near stations is also being developed by property owners.

“We want to put our properties in play,” Richard Andreski, president and CEO of Trinity Metro, said.

Fort Worth’s Moving a Million plan emphasizes safety and mobility programs that include plans for more paths for pedestrian and bicycle use.

The interim funding will aid such programs, officials said.

Funding cuts by President Donald Trump are aimed at eliminating “waste, fraud and abuse” out of the federal budget. Cuts implemented by the Department of Government Efficiency, or DOGE, are significantly impacting local agencies and nonprofits.

The 2025-2028 Transportation Improvement Program identified more than $8.4 billion in road and transit projects for North Texas, including several for Tarrant County. Those projects, which include federal funding, are expected to be completed within four years, according to the council of governments. Several road projects are under construction or in the preconstruction phase.

Eric E. Garcia is a senior business reporter at the Fort Worth Report. Contact him at eric.garcia@fortworthreport.org. 

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