Unleashing American Energy and a Look at Infrastructure Investment and Jobs Act

Published: February 14, 2025

Federal Agency Account PlannerFirst 100 Days

This article provides a snapshot of the IIJA spending over the past four years,

President Trumps Unleashing American Energy executive order (EO) temporarily paused funds associated with disbursement of funds under the Inflation Reduction Act of 2022 (IIJA) and the Infrastructure Investment and Jobs Act (IRA) leaving a wake uncertainty, multiple lawsuits and restraining orders against the moratorium. Although a subsequent Office of Management and Budget (OMB) memo clarified that the pause only applied “funds supporting programs, projects, or activities that may be implicated by the policy established in Section 2 of the order,” including the electric vehicle mandate, the full scope remains unclear. This week's article takes a look at the IIJA its original purpose and current performance.

Background

The IIJA became law November 15, 2021 under President Biden authorizing $550B with about two-thirds to be transferred to state, local and tribal governments, industries and individuals.  The plan included essentially doubled the amount of planned infrastructure spending to be allocated over a five-year period. However, $120B in funding has no expiration date. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additionally, some funding pools were shared across the various recipient types with 99% distributed among 11 federal and state, local and education priority areas. 

 

 

 

 

 

 

 

 

 

 

 

The IIJA also established the following new office and programs:

  • Advanced Research Projects Agency–Infrastructure (ARPA–I) (DOT)
  • Chief Travel and Tourism Officer (DOT)
  • Cyber response and recovery fund
  • S&L cybersecurity grant program
  • Office of Multimodal Freight Infrastructure and Policy
  • DOT Interagency Infrastructure Permitting Improvement Center
  • Rural Opportunities to Use Transportation for Economic Success Office (ROUTES)
  • Advanced transportation research pilot initiative.

Current Status:

During the past four years, approximately $7.4 trillion has been reported, including contracts, subcontracts, funding, grants, cooperative agreements and loans. 

 

 

 

 

 

 

 

 

 

 

 

These funds were disbursed among five primary market segments with about 86% ($6.4T) in the Facilities and Construction industry. Electronic and Communication Equipment, Security and Protection, Sustainment, Industrial Products and Services Transportation and Logistics Services, Clothing, Textiles and Subsistence, and Medical Services account for $4B across all funding types. The Department of Energy received 98% of all funding, far outpacing all other agencies. While disbursement across the country and its territories varied widely, 11 states received more than $100B during this time, with California, Tennessee and New Mexico receiving the lion’s share. The impact on the individual agencies and  regions remains to be seen. 

 

 

 

 

 

 

 

 

 

 

 

 

What lies ahead?

While the clarification memo said the temporary pause stated it only applied to the “Green New Deal” and “programs, projects, or activities that may be implicated by the policy established in Section 2 of the order,” there is still widespread confusion on exactly what those programs, projects and activities are and to what levels of funding are included. According to a recent memo cited by the Exchange Monitor, the pause supposedly applies only to contract procurements of $100K and more. However, terminations for convenience continue along with stop work orders on federal contracts. It remains unclear which states, agencies or programs will be impacted the most. Contractors wading through the murky waters of the First 100 days must remain vigilant and in communication with their Contracting Offices despite possible issues from continued agency downsizing. Nevertheless, it’s imperative all funding recipients, whether via contracts, subcontracts, grants, loans or other assistance continue to meet all program requirements and deadlines. For more information on the IIJA, see Deltek’s previous articles:

For more resources and analysis on the Trump Administration transition, check out GovWin’s First 100 Days Resource Center.

Additionally, the SLED and Canadian teams are providing updates and analysis on key Trump Administration actions impacting state and local and Canadian contractors. Learn more about their insights through the following links:

Impacts on the Canadian public sector

Impacts on the State and Local markets