The recent passage of a sweeping tax policy bill by the U.S. House, which was backed by President Donald Trump, has placed high-profile federal transportation grants at risk for state and local officials. These grants include a significant $488 million earmarked for the overhaul of Portland’s Rose Quarter.
The U.S. Department of Transportation awarded this funding through two grants in 2024. The larger $450 million grant is designated for the Oregon Department of Transportation (ODOT) to implement caps on Interstate 5 as part of the long-planned expansion project at the Rose Quarter. The smaller grant of $38 million is intended for the Portland Bureau of Transportation (PBOT) to reconfigure lower Broadway in relation to the I-5 expansion.
These grants were obtained through the advocacy of the Albina Vision Trust, a nonprofit organization established to revitalize historically Black neighborhoods in North and inner Northeast Portland that were adversely affected by I-5’s construction and adjacent urban renewal efforts.
The grants that the Albina Vision Trust played a crucial role in securing are vital to a delicate compromise among various governments, integrating the expansion of a congested area of the highway (a priority for ODOT) and constructing a new neighborhood above the highway (a concept supported by both the nonprofit and City Hall).
Moreover, these grants represent the largest amounts awarded by the federal government through the Reconnecting Communities program, which aims to remedy some of the harm inflicted on cities by the construction of the interstate highway system. This initiative operates under the framework of the Neighborhood Access and Equity Grant Program.
Initially, the Rose Quarter project, which ODOT is set to implement, had a budget approved by the Legislature in 2017 that was worth $450 million. However, the estimated cost has escalated to approximately $2.1 billion, following the unsuccessful attempt to pass a statewide transportation funding package last week. Consequently, most of the funding that ODOT is relying on to initiate construction will depend on the federal money facilitated by the Albina Vision Trust.
The recently passed Big Beautiful Bill Act, which was enacted by the House on July 3, incorporates a brief yet potentially impactful section concerning these grants. In section 60019 of the act, titled “Rescission of Neighborhood Access and Equity Grant Program,” it states, “The unobligated balances of amounts made available to carry out section 177 of title 23, United States Code, are rescinded.”
J.T. Flowers, serving as the government affairs director for the Albina Vision Trust, has expressed a desire to clarify the meaning of “unobligated” in the context of the newly passed bill.
“Does it mean signed agreements are safe, or that every dollar that the federal government hasn’t forked over yet is canceled?” Flowers inquired.
While grant agreements with ODOT and PBOT were signed before President Joe Biden’s departure from office, the determination of whether these agreements qualify as “obligated” remains uncertain. ODOT has commented previously that disbursement of funds does not occur until the projects commence, which has yet to take place.
In response to the new developments, Joe Cortright, an economist from Portland and member of No More Freeways, a group opposing the Rose Quarter expansion over environmental concerns, stated that section 60019 might signify the end for the project. He conveyed his sentiments in a commentary titled “The Rose Quarter Freeway Widening is Dead.”
Both ODOT and PBOT have not yet responded to requests for updates regarding the Rose Quarter projects.
Despite these uncertainties, Flowers maintains a cautiously optimistic outlook.
“If we have learned anything in this process, it’s to plan for the worst and hope for the best,” he remarked.
Flowers points out that the rebuilding of the neighborhood is a long-term endeavor, thus requiring a perspective that extends beyond immediate hurdles.
“This moment seems optically a little more dire than it is. These are projects that take many years to build,” he remarked.
He also noted that other projects, such as the replacement of the Interstate Bridge to Vancouver, have been prioritized by the Trump administration, lending hope to the continuity of funding for the Rose Quarter initiative.
“It’s important to remember that we have built a broad statewide, bipartisan coalition that encompasses labor, business, agricultural, and other interests to safeguard these grants,” Flowers added.
With the Rose Quarter’s location at the crossroads of two interstate highways, Flowers emphasized its significance as a regional asset.
“There’s no such thing as a red or blue highway,” he stated. “These grants are vital to infrastructure that we all depend on.”
image source from：wweek
