ACEC National has shared the following regarding President Trump’s FY2027 Budget that was filed late last week. As noted below, the Administration budget, much like the Governor’s Budget in Massachusetts, is more of a blueprint of priorities and a jumping off point for congressional appropriators.
ACEC National and ACEC/MA will continue to monitor the federal budget and engage where and when appropriate.
Last week the Trump Administration released its budget proposal for Fiscal Year 2027. The budget is not binding – it is a blueprint for the President’s spending priorities for the coming year and a starting point for negotiations in Congress. Given the narrow margins in the House and the Senate and the persistent stalemates over appropriation bills, it is unlikely that many of these initiatives will be enacted as proposed. (Emphasis added by ACEC/MA)
The budget includes a 44% increase in funding for defense programs and a 10% cut for non-defense spending. Within those totals, here are some key infrastructure accounts of interest to the engineering industry:
- Proposes a 2% increase in highway and transit programs funded through the Highway Trust Fund
- Eliminates supplemental advanced appropriations, a $36.8 billion reduction from the last year of the IIJA, and rescinds $4.2 billion in unspent electric vehicle charging infrastructure funds
- $4 billion for FAA Facilities and Equipment and $4 billion for the Airport Improvement Program, level with FY 2026
- Adds $770 million for INFRA projects of national and regional significance and $714 million for bridge reconstruction and repair
- Reduces FTA capital investment grants to $1.2 billion, $485 million below FY 2026
- Requests $2.1 billion for Amtrak, $327 million below 2026, and $300 million for rail infrastructure grants
- Proposes $1.4 billion for a new maritime security trust fund to bolster domestic shipbuilding, and $450 million for port infrastructure development
- Eliminates RAISE, MEGA, and Safe Streets and Roads for All grants
Environmental Protection Agency
- Funds EPA at $4.2 billion, a 52% decrease from FY 2026
- $14 million for web-based permitting tools to streamline permitting timelines
- $122 million to fund EPA’s drinking water mission
- $1 billion for Great Salt Lake restoration and protection
- Proposes a 90% cut to the Clean Water and Drinking Water State Revolving Funds – the same as what was proposed last year and rejected by Congress
- Eliminates EPA’s Environmental Justice programming; Categorical Grants; additional funding for Superfund, and cuts funding for R&D
- Funds the Interior Department at $2.3 billion, a 12.9% decrease from FY 2026
- Proposes to consolidate Endangered Species Act and Marine Mammal Protection Act permitting into one program
- Proposes to reauthorize the Legacy Restoration Fund for deferred maintenance on public lands at $1.9 billion per year for 5 years
- Eliminates funding for the Bureau of Reclamation’s WaterSmart grants
- Reduces funding for U.S. Geological Survey
- Proposes increasing National Nuclear Security Administration (NNSA) funding by over $3.5 billion, which includes programs to ensure the safe and secure storage of nuclear material
- $3.5 billion for new Office of Baseload Power to fund activities to enhance baseload power, including building and upgrading grid infrastructure and equipment
- $1.2 billion for new Office of Artificial Intelligence and Quantum (AIQ) to support AI and Quantum Information Science activities that include data center infrastructure and AI-enabling energy systems
- $1.1 billion for new Office of Critical Minerals and Energy Innovation (CMEI) to support processing facilities, mine infrastructure, and supply chain development
- $676 million for Office of Hydrocarbons and Geothermal Energy (HGEO) to conduct research, development, demonstration, and deployment relating to hydrocarbon and geothermal resources
- Cuts $200 million in funding for ARPA-E, 43% below last year’s enacted level, for early-stage energy R&D that includes energy storage and energy efficiency technologies
- Decreases $1.1 billion for DOE Office of Science from last year’s enacted level, which supports funding for the national lab facilities
- Proposes $3 billion cut for the hydrogen hub program
- Cuts funding by $3.8 billion, a 37% reduction, mostly to civil works projects used to maintain ports and harbors (by comparison, Congress appropriated $10.44 billion for USACE in FY 2026)
Naval Facilities Engineering Systems Command (NAVFAC)
- Invests heavily in shipbuilding with NAVFAC shore infrastructure workload of piers, maintenance facilities, weapons handling, and berthing
- NAVFAC executes much USCG facility work
Coast Guard
- Proposes an increase of $2.1 billion for a total of $12.5 billion. Much of the increase is in connection with the Force Design 2028 initiative related to shore infrastructure, facility upgrades, station improvements tied to fleet modernization
Federal Emergency Management Agency (FEMA)
- Proposes a $1.3 billion reduction to FEMA non-disaster grant programs
National Oceanic and Atmospheric Administration (NOAA)
- Overall $1.6 billion cut, but the National Weather Service has a small increase of $8 million and the National Environment Satellite, Data and Information Service (NESDIS) has a proposed topline of $321 million
- Operations, Research, and Facilities (ORF) account which includes funding for National Ocean Service (NOS) and National Geodetic Survey (NGS) has a topline 35% reduction, including elimination of many research and grant programs
General Services Administration (GSA)
- $10.52 billion for the Federal Buildings Fund (FBF)
- $33.056 million for construction and acquisition, and $1.78 billion for repairs and alterations
- Focus on agency reorganizations, deposal of existing buildings, and facility consolidation
Cybersecurity and Infrastructure Security Agency (CISA)
- Proposes a $707 million reduction, 25% below FY 2026, including physical infrastructure security grant programs
Please contact Matt Reiffer, ACEC Vice President, Infrastructure, directly with any questions.
ACEC/MA will be advocating for state funding at the State House in Boston on May 28 and on Capitol Hill the first week of May as part of the ACEC National Convention. Sign up for one or both today to make sure the industry’s voice is heard.