The recent passage of a major tax policy bill by the U.S. House, backed by President Donald Trump, has cast a shadow over federal transportation grants that are crucial for infrastructure developments in Portland, particularly the transformative overhaul of the Rose Quarter.
Among the grants in jeopardy is a substantial $488 million package, awarded by the U.S. Department of Transportation in 2024.
This funding includes a $450 million grant designated for the Oregon Department of Transportation (ODOT) to implement caps on Interstate 5, which is part of a long-awaited expansion of the freeway at the Rose Quarter.
Additionally, a $38 million grant is allocated to the Portland Bureau of Transportation (PBOT) to revamp lower Broadway as part of the I-5 improvements.
The Albina Vision Trust, a nonprofit organization focused on revitalizing historically Black neighborhoods in North and inner Northeast Portland, was instrumental in securing these grants.
These grants are vital to a delicate agreement between various governmental bodies, facilitating both the expansion of the highway – a priority for ODOT – and the development of a new neighborhood over the interstate, an initiative supported by the nonprofit and City Hall.
These grants represent not just a significant federal investment but also the largest allocation from the Reconnecting Communities program, which aims to remedy some of the urban damage caused by the interstate highway system’s expansion.
The funding is part of a broader initiative known as the Neighborhood Access and Equity Grant Program.
Initially, the Rose Quarter project was budgeted at $450 million when approved by the Legislature in 2017, but that estimate has swelled to an eye-watering $2.1 billion.
With a recent state funding package failing to pass, ODOT hopes to rely heavily on these federal grants secured with the Trust’s help to initiate construction.
However, the recently passed Big Beautiful Bill Act raises concerns with a short but potent section titled “Rescission of Neighborhood Access and Equity Grant Program.” In section 60019, it states that “the unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded.”
J.T. Flowers, the government affairs director for Albina Vision Trust, is keen to clarify what “unobligated” entails in the context of the new legislation.
He reflects on whether this term means that signed agreements remain intact or if any federal funds not yet disbursed are at risk of cancellation.
ODOT has indicated to Willamette Week (WW) previously that actual funding wouldn’t commence until construction projects begin—raising further questions about the stability of the federal support.
Joe Cortright, an economist from Portland associated with No More Freeways, has rebutted the project’s viability, labeling the concise note in section 60019 as a potential death knell for the Rose Quarter expansion project.
Despite the uncertainty, Flowers maintains a sense of cautious optimism.
“If we have learned anything in this process, it’s to plan for the worst and hope for the best,” he asserts.
He emphasizes the importance of a long-term focus, particularly given the chaos currently surrounding the funding situation.
Flowers also highlights that the Trump administration has identified a similar project, the reconstruction of the Interstate Bridge to Vancouver, as a key transportation priority.
He believes that efforts to revitalize the neighborhood are inherently a long-term commitment.
“This moment seems optically a little more dire than it is. These are projects that take many years to build,” he says.
When considering the broader context, there are substantial reasons to remain optimistic about the federal government’s continued involvement in the Rose Quarter project.
Flowers points out that many Republican-led cities received federal transportation grants under the same initiative, suggesting that bipartisan pressure may encourage the Trump administration to uphold their commitments.
The trust has rallied a diverse coalition across the state’s political spectrum, comprising labor, business, agriculture, and various interest groups, to safeguard the grants.
The Rose Quarter’s strategic location at the crossroads of two major interstate highways underscores its regional importance.
As Flowers aptly puts it, “There’s no such thing as a red or blue highway.”
He concludes that these grants underpin essential infrastructure that benefits the entire community, regardless of political affiliation.
image source from：sweethomenews
