From Matt Reiffer, Vice President, Infrastructure, ACEC:
This week House and Senate negotiators released the final version of the appropriations bill for the Department of Transportation for Fiscal Year 2026. The bill is expected to be included in a package of spending bills including defense, homeland security, health and education programs.
The bottom line: the bill fully funds the authorized levels for most programs under the Infrastructure Investment and Jobs Act (IIJA) and adds some additional investments, including a very large number of earmarked projects. Lawmakers did reprogram approximately $2.3 billion in unspent IIJA funds to other transportation infrastructure accounts.
Here are a few highlights:
Highways
- $62.7 billion for federal highway programs, consistent with the authorized levels in IIJA and an increase of $1.3 billion above FY’25.
- An additional $927 million in general funds for highway infrastructure, including $350 million for a competitive bridge repair and rehabilitation program.
- Reprogramming $1.47 billion in unobligated IIJA highway funding, including $803 million from the National Electric Vehicle Infrastructure program and $205 million from SMART grants.
- $1.5 billion in earmarked projects.
Transit
- $14.6 billion for transit formula programs, consistent with the authorized levels in IIJA and an increase of $363 million above FY’25.
- $1.7 billion for transit capital investment grants (e.g. new starts and small starts), a $505 million decrease below FY’25. According to a committee summary, this funding coupled with $1.6 billion in IIJA advanced appropriations is sufficient to fund projects with FTA grant agreements.
- An additional $23 million in general fund supplements and reprogramming $188 million from unobligated IIJA transit accounts.
- $148 million in earmarked projects.
Rail
- $2.4 billion for Amtrak, a small decrease below FY’25.
- $850 million for the Northeast Corridor
- $1.58 billion for the National Network
- $137 million for consolidated rail infrastructure and safety improvement program grants ($130 million reprogrammed from unobligated IIJA rail funds, including federal-state partnership passenger rail grants).
Aviation
- $4 billion for FAA facilities and equipment, an increase of $823 million above FY’25.
- $4 billion for the Airport Improvement Program, consistent with the FAA reauthorization law and FY’25.
- An additional $208 million from the general fund and $368 million reprogrammed from unobligated IIJA airport infrastructure and terminal program funding.
- $542 million in earmarked airport projects.
Multimodal
- $145 million for RAISE/BUILD grants, a decrease of $200 million below FY’25.
- $103 million for port infrastructure grants, an increase of $53 million above FY’25.
Click here for a summary from the Senate Appropriations Committee. Click here for a summary from the House Appropriations Committee.
Click here for a list of all the earmarked projects.
The House is scheduled to vote on the bill package later this week. Given the complicated dynamics and controversies over Homeland Security immigration enforcement activities, it’s not a straight path to passage. However, there seems to be broad bipartisan agreement over the transportation funding pieces of the bill.
The Senate is in recess this week and will return to DC next week, hopefully to wrap up work on the appropriations process.
The current short-term stopgap measure is set to expire on January 30. Neither party seems interested in another government shutdown at this point, but margins are narrow and nothing advances easily right now.