Lehigh Valley transportation, climate projects in limbo due to federal funding uncertainty

Large-scale Lehigh Valley transportation projects, including the $40 million Riverside Drive revitalization project along the Allentown waterfront, are in limbo due to uncertainties surrounding federal funding.

Local infrastructure planners report stalled communication with the U.S. Department of Transportation, leading to doubts that even fully funded projects will continue on their desired timelines.

The Lehigh Valley Planning Commission has a 2025 budget of $2.36 million to support transportation projects in Lehigh and Northampton counties, and executive director Becky Bradley said that planning work supports around $130 million in annual construction.

“If we can’t do our part, you can’t get to construction,” Bradley said.

Keeping the Riverside Drive revitalization project on track is one of Bradley’s priorities. Funding for the public-private partnership includes a $21.2 million RAISE grant from the U.S. Department of Transportation, awarded in 2021, and a $19 million match from The Waterfront Development Company.

When completed, a three-mile road will run from Hamilton Street in Allentown to Wood Street in Whitehall Township. The road, a two-lane street with a bike lane and walking path, will then continue as a gravel trail connecting to Lehigh Avenue.

The trail portion is important for emergency access and the whole project is an important step forward for a critically congested area, Bradley said.

Rick Molchany, director of general services for Lehigh County and chair of the Lehigh Valley Transportation Study, said the Riverside Drive project will bring opportunity to “the most challenged community in the entire Lehigh Valley” and will calm traffic.

“In the past, Fullerton Avenue, a leading access to and from Allentown/Whitehall, has had a motor vehicle accident that closed the road. Emergency vehicle access was delayed. This new roadway will provide an alternative to Fullerton Avenue,” Molchany said in an email. “Beyond the roadway, the D&L trail system improvement is significant. We know our County trails are wildly popular. Adding this trail to our already significant trail network will provide the most populated area of the D&L to utilize the trail for passive recreation.”

Construction is set to begin in 2027 and end in 2029, but that timeline could be in jeopardy if planners cannot get contracts approved.

The Pennsylvania office of the Federal Highway Administration can no longer approve contracts while federal agencies complete spending reviews mandated by Trump administration executive orders, Bradley said, which leaves the Riverside Drive project as one of many that are now potentially in question.

“The contract is basically done,” Bradley said, “however, it’s down in D.C. now, and so we don’t know what the status of that project is either.”

The “Unleashing American Energy” executive order, signed on Inauguration Day, ordered an immediate pause on the dispersal of funds from the Inflation Reduction Act of 2022 and the Infrastructure Investment and Jobs Act.

A lack of communication from federal transportation officials has motivated local planners to seek answers from their elected representatives in Washington to determine whether projects will be able to move ahead.

“Here’s the truth — I don’t know if any of these things are in jeopardy,” Bradley said. “It’s just uncertain.”

The Lehigh Valley Planning Commission is closely monitoring all projects and staying in touch with Sen. John Fetterman and Rep. Ryan Mackenzie to gain clarity.

“Right now it’s very important not to overreact or underreact,” Bradley said.

In an email, Mackenzie said, “Our office recently met with the Lehigh Valley Planning Commission to understand the issues they are facing, and we will continue to advocate for projects of importance to our community to make sure that approved funding is released.”

Much of the commission’s work depends on reimbursement. While there have been delays for some programs, money has continued to flow, Bradley said.

“Financially, things are, monies are coming in,” Bradley said. “Yet we have some things we need to get going that we can’t get going until we get some clarity.”

Beyond the Riverside Drive project, Bradley is also prioritizing planning work on the Route 22 corridor. The planning commission has $1 million in funding to update a study that will help prioritize which projects need to be done in what order to improve safety along the heavily trafficked route.

“From this study, we can develop and lobby to secure funding for lane expansion,” Molchany said in an email. “Today, when state Route 22 is backed up, motorists will get off the highway, and overpack the municipal roadways. This increase in usage has a [trickle-down] effect that causes roadway maintenance for the municipality.”

State Sen. Nick Miller said that the Route 22 study is an example of an infrastructure project that has regional, bipartisan support, and running approvals through Washington can create a bottleneck.

“Further delay on these huge projects that take long enough already is very frustrating,” Miller said. “I know we’re looking at, you know, are there other opportunities with state dollars to support the 22, but that’s going to be challenging to make happen.”

In a statement, PennDOT spokesperson Erin Waters-Trasatt said the federal funding is critical to maintaining and improving the state’s transportation infrastructure.

“Keeping our roads, bridges, public transit, and other travel options safe and efficient is a top priority of the Shapiro administration, and continued federal investment is critical to keeping Pennsylvania’s communities and economy growing,” Waters-Trasatt said. “These projects, sponsored by and involving many government, private, and community partners, demonstrate transportation’s importance to their communities.”

Waters-Trasatt pointed to a statement by PennDOT Secretary Mike Carroll at a recent legislative hearing in which he said, “I’m going to believe that a discretionary grant that was provided during the last administration would be honored by the new administration.”

Planning for the future also means improving electric vehicle charging infrastructure, Bradley said, and their work on that issue is now stalled as the National Electric Vehicle Infrastructure program was specifically designated for elimination by Trump’s executive order.

The executive order also targeted many climate programs. The Lehigh Valley Planning Commission received a $1 million Climate Pollution Reduction Grant and has begun work on a regional climate action plan.

The commission has $612,015 in its 2025 budget to complete that work, but conflicting communication from the Environmental Protection Agency has left them moving ahead cautiously, Bradley said.

While a January email from the EPA indicated the Climate Pollution Reduction Grant Program would end, a follow-up email in early February noted that a ruling from the U.S. District Court of Rhode Island had temporarily reversed the EPA funding freeze.

That court order gave the planning commission more confidence that their climate work could continue, but their controller found that the payment portal for the EPA was not open when they went to file for reimbursement for January expenses.

After trying the payment portal over and over for weeks, the commission was able to file and receive payment toward the end of February.

The commission will continue its climate work as long as it is able to receive reimbursement, but there is little clarity concerning how that process will go moving forward, Bradley said.

“It’s been kind of fits and starts,” Bradley said.

Morning Call reporter Elizabeth DeOrnellas can be reached at edeornellas@mcall.com.