House and Senate Appropriations Committee Leaders on Jan. 20 unveiled H.R. 7148, the Consolidated Appropriations Act, 2026, which represented a “bipartisan, bicameral” agreement on Fiscal Year (FY) 2026 appropriations legislation. The legislation included the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 (Division D) (THUD Appropriations Act). On Feb. 3, POTUS-47 signed into law H.R. 7148, following U.S. House passage hours before and U.S. Senate passage Jan. 30.
The move not only ensured that most federal programs and projects will be funded through Sept. 30, 2026 (funding for the U.S. Department of Homeland Security will expire Feb. 14 without further action), but also ended the partial government shutdown that began Jan. 31. Office of Management and Budget Director Russ Vought directed agencies and departments, which included the Surface Transportation Board, to reopen Feb. 4.
Highlights of FY 2026 THUD appropriations for the U.S. Department of Transportation:
USDOT: $25.1 billion in discretionary budget authority.
- Office of the Secretary: $1.1 billion, including $145 million for the BUILD grant program and $513.6 million for the Essential Air Service program.
- Federal Aviation Administration: $22.2 billion, including $13.7 billion for Operations, $4 billion for Facilities and Equipment, $290 million for Research and Development, and $4 billion for Grants-in-Aid for Airports. This funding provides for an dditional 2,500 new air traffic controllers and prioritizes investments to modernize outdated systems in our National Airspace.
- Federal Highway Administration: $64.3 billion, including $350 million for a competitive Bridge Repair and Rehabilitation program, $200 million for commercial motor vehicle public parking projects, and $200 million for the Tribal Transportation program.
- Federal Railroad Administration (FRA): $2.9 billion for the FRA, which includes a rescission of California High Speed Rail funding. Of this total, $2.4 billion is for Amtrak, of which $1.6 billion is for Amtrak’s National Network and $137 million is for the Consolidated Rail Infrastructure and Safety Improvements grant program. Additionally, up to $4.8 million is provided for FRA’s Close Call Reporting System, as well as funding for railroad trespass prevention and positive train control support.
- Federal Transit Administration: $16.5 billion, including $1.7 billion for the Capital Investment Grants program, $14.6 billion for Transit Formula Grants to fund programs like the Bus and Bus Facilities grants, and $211 million for Transit Infrastructure Grants, including $45 million for ferry programs.
- Maritime Administration: $917 million, including $103.3 million for the Port Infrastructure Development Program and $35 million for Assistance to Small Shipyards Grants. The bill also includes $390 million for the Maritime Security Program, $81.6 million for the Tanker Security Program, and $10 for the Cable Security Fleet, which are critical to national security. Additionally, $138.9 million is provided for State Maritime Academies and more than $200 million is provided for the United States Merchant Marine Academy.
BACKGROUND
The final, bipartisan THUD Appropriations Act (download below) “provides the overwhelming majority of public transit and passenger rail investments authorized in the Infrastructure Investment and Jobs Act (IIJA),” the American Public Transportation Association (APTA) reported Jan. 21. APTA noted that it strongly supports the legislation.
Specifically, the THUD Appropriations Act, together with the IIJA’s advance appropriations, provides a total of $21.1 billion for public transit in FY 2026, an increase of $168 million from the FY 2025 enacted level. In addition, the THUD Appropriations Act and IIJA provide $15.9 billion for passenger and freight rail in FY 2026, a decrease of $298 million from the FY 2025 enacted level.
According to APTA, the House of Representatives was to vote on H.R. 7148 in the next couple of days, and the Senate plans to consider the legislation next week, before the Jan. 30 deadline.
Public Transit
The THUD Appropriations Act and IIJA provide $21.1 billion for public transit in FY 2026, an increase of $168 million from the FY 2025 enacted level. This total appropriation is $1.2 billion less than the amount authorized in the IIJA.
The THUD Appropriations Act fully funds the public transit contract authority of $14.6 billion, as provided by the IIJA, which allows the Federal Transit Administration (FTA) to fund contract authority-backed programs, such as formula grants and bus competitive grants.
The THUD Appropriations Act, together with IIJA advance appropriations, provides $3.3 billion for Capital Investment Grants (CIG), $505 million less than the FY 2025 enacted level. The THUD Act designates this CIG funding for 21 specific projects detailed in the Joint Explanatory Statement that accompanies the legislation. The legislation funds 10 New Start, two Core Capacity, and nine Small Start projects.
The THUD Appropriations Act also provides an additional $211.4 million for specific initiatives, including:
- $25 million for passenger ferry grants under the Urbanized Area Program (including $4 million for low- or zero-emission ferries) and $20 million for ferry service in rural communities;
- $15 million for operating costs to improve public safety, reduce crime, and increase security for the 10 public transit agencies with the highest ridership in FY 2024; and
- $147.9 million for Congressionally Directed Spending (earmarks) on designated public transit projects.
In addition, section 166 provides $100.3 million for planning, operating, and capital grants to public transit agencies in cities hosting the FIFA World Cup. The funding, APTA says, is distributed by a formula that considers stadium seating capacity and the number of matches in each host city. The Federal share is up to 100%.
Similarly, section 165 provides $94.3 million for transportation assistance, including planning, operating, and capital assistance, to support the 2028 Olympic and Paralympic Games. The Federal share is generally up to 80%. For the supplemental public transit bus system, the Federal share is not less than 90%.
Finally, the Act includes several important public transit policy provisions that have been included in prior THUD Appropriations Acts. “Section 163 blocks the Rostenkowski Test, preventing a possible across-the-board cut of FY 2026 transit formula funds to each public transit agency. Section 164 prohibits the U.S. Department of Transportation (DOT) from impeding or hindering a project from advancing or approving a project seeking a CIG Federal share of more than 40%. Section 193 prohibits DOT from enforcing a mask mandate in response to the COVID-19 virus in FY 2026.”
Passenger Rail
The THUD Appropriations Act and IIJA provide $15.9 billion for passenger and freight rail in FY 2026, a decrease of $298 million from the FY 2025 enacted level. This total appropriation is $5.1 billion less than the amount authorized in the IIJA, according to APTA.
Specifically, the Act appropriates $2.4 billion for Amtrak grants ($1.6 billion for National Network grants and $850 million for the Northeast Corridor), which is $1 million less than the FY 2025 enacted level.
The legislation provides $137 million for Consolidated Rail Infrastructure and Safety Improvement (CRISI) grants, an increase of $37 million from the FY 2025 enacted level. The THUD Appropriations Act provides $87 million for specific CRISI projects and allows CRISI grants to be used for commuter railroad projects “that implement or sustain positive train control (PTC) systems.”
The IIJA provides $7.2 billion for the Federal-State Partnership for Intercity Passenger Rail Grants, and the THUD Appropriations Act provides an additional $65 million, a decrease of $10 million from the FY 2025 enacted level.
Finally, section 156 rescinds $928.6 million for high-speed and intercity passenger rail grants originally provided in 2010 (P.L. 111-117).
USDOT Programs
The THUD Appropriations Act and IIJA provide $1.6 billion for Better Utilizing Investments to Leverage Development (BUILD) competitive grants (formerly RAISE, formerly TIGER) for surface transportation projects, including public transportation and multi-modal projects. The THUD Appropriations Act provides $145 million for BUILD grants in FY 2026, which is $200 million less than the FY 2025 enacted level, according to APTA. The legislation sets aside 5% of these funds for grants for historically disadvantaged communities or areas of persistent poverty.
The legislation also includes new oversight requirements on DOT grantmaking. Section 185 requires DOT to notify the House and Senate Committees on Appropriations “prior to making, withdrawing, terminating, or rescinding a discretionary grant, loan or loan guarantee, or Full Funding Grant Agreement.” In addition, the Joint Explanatory Statement directs DOT to brief the House and Senate Appropriations Committees “detailing the scope of DOT’s grant review backlog, how staffing shortfalls at the modal administrations and the Office of the Secretary may contribute to this backlog, and the Department’s plan to improve grant processing timelines and capacity.”
Finally, the Joint Explanatory Statement directs the Government Accountability Office to conduct a study on congestion pricing that includes the impact on safety, emissions, and congestion, as well as the financial impact on personal vehicle drivers, public transit users, bicyclists, and pedestrians.
Railway Age Executive Editor Marybeth Luczak contributed to this report.
