Trump administration pauses $11B in Army Corps water projects amid budget standoff
Key Highlights
- The pause affects more than $11 billion in water infrastructure projects across 12 states, including major projects in New York, California, and Maryland.
- The Office of Management and Budget is reviewing the projects to determine their alignment with federal priorities, potentially excluding some from core missions.
- Members of Congress have criticized the move, calling for transparency and questioning the political motives behind the project delays.
The Trump administration has paused more than $11 billion in U.S. Army Corps of Engineers water infrastructure projects across 12 states, citing the ongoing federal government shutdown and budget constraints. The projects—spanning California, New York, Illinois, Maryland, Oregon, New Mexico, New Hampshire, Massachusetts, New Jersey, Rhode Island, Delaware and Colorado—are now under review by the Office of Management and Budget (OMB).
According to OMB Director Russ Vought, the decision stems from what he described as the impact of the shutdown on the Corps’ ability to manage its project portfolio. About $7 billion of the affected funding was slated for projects in New York, including wastewater treatment and water supply improvements in Queens. Other projects involve aquatic habitat restoration in California and navigation and ecosystem work in Baltimore Harbor, the Port of Long Beach and the San Francisco Bay Area.
In a statement, an OMB spokesperson said the review aims to “reorient how the federal government prioritizes Army Corps projects,” adding that certain efforts—such as “bike lanes in Cape Cod” and “municipal sewage systems”—may fall outside the agency’s core mission.
The Army Corps of Engineers, which oversees flood control, ecosystem restoration, navigation and water infrastructure under congressional authorization, said it is unable to comment further during the shutdown, according to POLITICO reporting. “Further information can be made available after the lapse in appropriations ends,” a Corps spokesperson said.
Members of Congress, including Senate Appropriations Vice Chair Patty Murray (D-Wash.), criticized the move as politically motivated, while others called for greater transparency into which projects are affected and how the review process will proceed.
The pause adds new uncertainty for states and utilities depending on federal partnerships to advance critical water and wastewater infrastructure upgrades under the Water Resources Development Act and other funding mechanisms.
