States no longer have to repay federal highway funds if projects stall for a decade

The US Federal Highway Administration removed a rule that required states to repay federal funds for preliminary engineering if a highway project did not start construction within ten years. This means states can now plan highway projects without the risk of having to return federal money if the project gets delayed for a long time.

For decades, states had a financial incentive to either start highway construction quickly or abandon projects that faced long delays. This rule change removes that pressure. It means states can now take more time to plan complex infrastructure projects, or simply let them sit on the books indefinitely without financial penalty.