Army Corps Deauthorized Hundreds of Stalled Projects
Construction firms and developers should review federal funding status for long-dormant infrastructure projects.
Updated on Sept. 21, 2026 in Construction
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Should the federal government cancel authorized infrastructure projects that have lacked funding for decades?
The U.S. Army Corps of Engineers has finalized a decision to deauthorize hundreds of unfunded infrastructure projects nationwide, including eight in New Jersey. This move impacts long-delayed construction plans that were authorized by Congress but failed to secure necessary yearly appropriations.
Why it matters
This cull is designed to clear the project backlog and focus federal resources on initiatives that remain viable for construction. Operators in the civil sector face renewed uncertainty regarding projects that have sat dormant for decades without reliable funding streams.
The Army Corps identified eight New Jersey projects for deauthorization out of hundreds nationwide, including the $278 million East Riser flood-mitigation project. That specific project sought $181 million in federal funding to achieve a projected 26% to 29% reduction in flood risk.
The players
U.S. Army Corps of Engineers
A federal agency that provides engineering and construction services for public infrastructure, civil works, and military projects.
General Graham
A high-ranking official within the U.S. Army Corps of Engineers responsible for overseeing project viability and military recommendations.
The details
The deauthorization process targets projects authorized by Congress that have not received federal funding through the annual appropriations process. For specific projects like the East Riser effort in the Meadowlands—which involves railroad bridge upgrades and culvert replacements—this status threatens the feasibility of protecting critical infrastructure like Teterboro Airport. Companies relying on these projects must now navigate the distinction between initial congressional authorization and the actual appropriation of funds required to break ground.
Timeline
Mid-1980s: Two New Jersey projects received their original congressional approval.
May 2026: The Army Corps began a review of all unfunded, authorized projects.
July 6, 2026: General Graham officially recommended the East Riser project to the Pentagon.
August 20, 2026: The Army Corps completed the nationwide deauthorization decision.
Market Landscape
This mass deauthorization signals a shift from the historical trend of maintaining long-dormant authorizations under the Water Resources Development Act. By clearing the books, the agency is tightening the link between legislative approval and the realistic prospect of construction funding.
Operators currently counting on federal backing for long-authorized infrastructure projects should re-verify funding status with their agency points of contact. Firms must adjust their multi-year revenue projections to account for the risk that projects without federal appropriations over the last 15 years may be permanently removed from the pipeline.
The takeaway
The era of "zombie" infrastructure projects that persist for decades on paper is closing as federal agencies prioritize active, fundable construction. Operators should audit their current project list for any items that lack recent federal appropriations to assess if they face immediate removal.
Further reading
For more on how shifts in federal infrastructure policy affect regional project pipelines, see our Construction coverage.
Live Poll
Should the federal government cancel authorized infrastructure projects that have lacked funding for decades?
