Infrastructure: USACE Funding Better Than Zero, But a Missed Opportunity

On May 15, the U.S. Army Corps of Engineers released its Fiscal Year (FY) 2025 Work Plan that allocated funds from the FY25 Full-Year Continuing Appropriations and Extensions Act. That bill provided funding for the Corps’ Civil Works mission, typically funded in the annual Energy and Water Development appropriations bill.

The Corps’ FY25 Work Plan provided nearly $200 million for inland waterways construction projects, of which nearly $50 million will come from the Inland Waterways Trust Fund (IWTF). The IWTF is funded through a 29-cents-per-gallon diesel fuel tax paid for by commercial operators on the inland waterways system.

The $200 million is significantly down from FY24’s record level funding of $456 million and is well below the capability expressed by the Corps for inland construction projects in FY25. But, because regular appropriations were not enacted, the full-year Continuing Resolution (CR) that is currently funding the federal government – while based on FY24 levels – does not guarantee specific programs within the Corps’ Civil Works mission will receive funding in FY25.

Also, FY24 funding included Infrastructure Investment and Jobs Act (IIJA) monies which are not available to be offset for FY25. As a result, the lower funding available for