What USDOT’s Decision to Rescind $54 Million in University Grants Means for the Future of

Transportation Policy

By Levitate Legal & Consulting
Published: May 5, 2025

In a significant policy shift, U.S. Transportation Secretary Sean P. Duffy announced the termination of seven university research grants totaling nearly $54 million. The U.S. Department of Transportation (USDOT) stated that these grants—previously awarded under the Biden administration—were being defunded because their focus on diversity, equity, inclusion (DEI), and environmental justice was “misaligned” with the Department’s renewed emphasis on traditional transportation priorities.

 

“I’ve focused the Department on what matters: safety, making travel great again, and building big, beautiful infrastructure projects,” said Secretary Duffy in the official press release.

Who’s Affected?

The move impacts a number of major universities and research centers that had received funding to explore how transportation systems could better serve marginalized and environmentally burdened communities. The rescinded grants include:

• University of California, Davis ($12M): Focused on equitable decarbonization in transportation.
• City College of New York (~$9M): Addressed workforce access for historically disadvantaged communities.
• University of Southern California (~$9M): Researched systemic inequities in urban transportation systems.
• New York University ($6M): Promoted equitable e-bike adoption in underserved neighborhoods.
• San Jose State University (~$6M): Focused on intermodal transport equity and safety issues.
• University of New Orleans ($6M): Investigated transit-oriented development with a focus on environmental justice.
• Johns Hopkins University ($6M): Explored disparities in pollution exposure and EV access for low-income communities.

A Growing Divide in Transportation Policy

The decision has stirred strong reactions across the transportation and academic policy communities. While the Department asserts that these cuts are about reprioritizing safety and infrastructure, critics argue that eliminating funding for equity-driven research could have long-term consequences for public health, access, and innovation.

Robert C. Hampshire, the former Chief Science Officer at USDOT, expressed concern via LinkedIn, warning that the defunding “undermines the Department’s ability to build a diverse transportation workforce and address complex societal challenges through science and data.”

Implications for Federal Grant Strategy

For municipalities, nonprofits, and research institutions, this move is a clear signal: federal transportation funding is undergoing a philosophical reset. Under Secretary Duffy’s leadership, the emphasis appears to be shifting from socially responsive transportation systems to projects centered around safety, infrastructure expansion, and efficiency.

Organizations submitting federal grant applications—particularly those with DEI, climate equity, or justice-oriented components—may need to reassess how they frame their proposals to align with the current administration’s priorities.

At Levitate Legal, we are closely monitoring these shifts in federal funding strategies to help our clients remain competitive, compliant, and forward-thinking.

About Levitate Legal & Consulting

Levitate Legal & Consulting helps mission-driven organizations and government agencies navigate federal funding, compliance, and policy change. With deep expertise in grant strategy, administrative law, and public sector partnerships, we provide legal insight and strategic guidance for those seeking to thrive amid a rapidly evolving regulatory landscape.