The U.S. inland waterways system, a critical artery for the nation’s supply chain and a vital component of its economic resilience, is facing a structural crisis. As aging infrastructure continues to deteriorate—with over 80% of the nation’s 219 locks and dams exceeding their 50-year design life—the Waterways Council has intensified its advocacy for a fundamental shift in how the U.S. Army Corps of Engineers (USACE) manages its river construction projects.
The council, which represents the diverse stakeholders who rely on these waterways, is calling for the establishment of a dedicated program manager to oversee all river construction. This move, they argue, is the only way to pivot from a fragmented, district-by-district approach to a cohesive, system-wide strategy capable of tackling the immense backlog of repairs and modernization efforts.
The Case for Unified Oversight
For years, the Army Corps has operated under a decentralized model, where individual districts manage projects in relative isolation. This siloed structure has long been criticized for creating internal competition for resources and preventing the cross-pollination of institutional knowledge.
"Our goal is for the work to be managed as a program as opposed to individual projects managed at individual districts, which often compete for resources or are not executed in the same manner," explains Jennifer Armstrong, vice president of government relations at the Waterways Council. "It is a way for lessons learned to be communicated across the entire system. Because the waterways are a connected network, funding decisions made at one project have cascading impacts on the entire program. We need visibility across the board."
The proposed "Inland Navigation Construction Organization" would provide this much-needed bird’s-eye view. Proponents argue that by managing locks and dams as part of a national system rather than independent construction sites, the Corps could optimize procurement, standardize construction methodologies, and avoid the cost overruns that have historically plagued massive projects like the Olmsted Locks and Dam.
A Chronology of Regulatory and Fiscal Challenges
The current state of the nation’s waterways is the result of decades of shifting fiscal policies and administrative hurdles. Understanding how the Corps arrived at this impasse requires looking back at the fundamental change in contract law nearly two decades ago.
- Pre-2006 (The Continuing Contract Era): Prior to 2006, the Corps utilized "continuing contracts," which allowed them to obligate federal funds for projects before the full appropriations had been formally passed by Congress. This provided a stable financial runway for massive, multi-year civil works projects.
- 2006 (The Funding Cliff): Congress ended the practice of continuing contracts. The immediate result was a "stop-and-go" construction environment. When annual funding runs out, work must halt—often leading to demobilization costs, contract renegotiations, and significant delays.
- 2024 (The Administrative Freeze): In April 2025, the Trump Administration dismissed all members of the Inland Waterways User Board, an 11-member federal advisory committee tasked with providing expert guidance to the Corps. The board remains suspended, leaving a critical communication gap between industry stakeholders and federal engineers.
- 2025 (The Communication Gag): A Department of Defense memo issued in 2025 restricted military officials from speaking to Congress without prior authorization. This has hamstrung the Corps’ ability to advocate for its own technical priorities and budgetary needs during the annual Water Resources Development Act (WRDA) negotiations.
Supporting Data: The Cost of Inaction
The data surrounding the Corps’ performance since 2006 is sobering. According to the Waterways Council, in the 20 years since the end of continuing contracts, the Corps has managed to complete only three large-scale projects: the Olmsted Lock and Dam in Illinois, the Charleroi Lock and Dam in Pennsylvania, and the LaGrange Lock and Dam in Illinois.
The inability to maintain a consistent funding stream has left other vital projects in limbo. The Chickamauga Lock and Dam in Tennessee has faced contract terminations, while the $1.2 billion Brandon Road Invasive Carp prevention project in Illinois has suffered from intermittent work stoppages.
The physical reality is equally concerning. With over 80% of locks and dams surpassing the half-century mark, the system is increasingly prone to emergency failures. These are not merely maintenance issues; they represent potential chokepoints that could paralyze the transport of grain, coal, and chemicals, effectively stalling large swaths of the American economy.
Official Responses and Political Hurdles
The legislative path forward for reform is currently divided. The House version of the 2025 WRDA bill includes provisions for a project management office, but advocates like Armstrong argue that it stops short of providing the "unified leadership" required to truly streamline project delivery. Meanwhile, the Senate Environment and Public Works Subcommittee has moved forward with a version of the bill that excludes the proposed Inland Navigation Construction Organization entirely.
Negotiators from both chambers are now tasked with hammering out a compromise. However, the Corps finds itself in a compromised position. Because of the 2025 DoD memo, the officers who best understand the technical intricacies of these projects are essentially barred from providing unscripted, direct testimony to Congress. This lack of transparency complicates the legislative process, as lawmakers are forced to make billion-dollar decisions without the direct counsel of the engineers on the ground.
The Human and Economic Implications
The suspension of the Inland Waterways User Board has removed a vital feedback loop. Previously, this board allowed shippers, operators, and river users to provide real-time input on everything from low-water navigation risks to the scheduling of major rehabilitations.
The absence of this board is not theoretical—it has real-world consequences. A notable example is the ongoing struggle on the Monongahela River in western Pennsylvania. Following the removal of the Elizabeth Lock and Dam in December 2024, water levels have fluctuated, causing navigation challenges for the Port of Pittsburgh. Solutions, such as dredging to maintain necessary pool depths, are currently in bureaucratic purgatory because the user board, which would normally vet such projects and advocate for their inclusion in the budget, is not meeting.
"The last time this happened was before the Infrastructure Investment and Jobs Act funding came out," Armstrong notes. "Decisions were made without the advice and recommendations of the industry. It can have significant consequences. We are currently waiting for the board to be reconstituted, but until then, we are flying blind on major system-wide updates."
The Path to Modernization
To reverse the current trend of project delays and budget overruns, the Waterways Council and other industry experts suggest a three-pronged approach:
- Programmatic Management: Transitioning from individual project management to a portfolio-based approach, where resources are allocated based on system-wide risk and priority.
- Restoration of Advisory Channels: Reconstituting the Inland Waterways User Board immediately to ensure that those who navigate the river have a seat at the table when infrastructure decisions are finalized.
- Fiscal Stability: Re-evaluating the impact of the 2006 contract policy shift to allow for more predictable funding cycles, perhaps by allowing the Corps to utilize long-term, multi-year funding vehicles that mimic the security of the pre-2006 continuing contracts.
As Congress navigates the final stages of the WRDA negotiations, the message from the river industry is clear: the current system is not just inefficient; it is unsustainable. Without a centralized command structure and a return to consistent, expert-informed project management, the nation’s inland waterways risk sliding into a state of permanent repair—a luxury that a modern, competitive economy cannot afford.
The stakes are high. Whether through the inclusion of the Inland Navigation Construction Organization in the final WRDA bill or a broader reform of the Corps’ internal management policies, the goal remains the same: ensuring that the backbone of the American heartland remains open for business.
