The Senate Committee on Appropriations on July 14 announced that it will mark up the 2026 House Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Bill, which “significantly cuts public transit and passenger rail funding, compared to the authorized levels in the Infrastructure and Investment and Jobs Act (IIJA),” according to the American Public Transportation Association (APTA).
Specifically, the THUD Appropriations bill, together with the IIJA’s advance appropriations, provides a total of $19.2 billion for public transit in FY 2026, a cut of $1.7 billion (8.3%) from the FY 2025 enacted level, including cutting nearly all General Fund appropriations for Capital Investment Grants (CIG). This total funding is $3.1 billion (13.9%) less than the amount authorized in the IIJA.
In addition, the House THUD Appropriations bill and IIJA provide $13.6 billion for passenger and freight rail in FY 2026, a cut of $2.6 billion (15.9%) from the FY 2025 enacted level. This total funding is $7.4 billion (35.3%) less than the amount authorized in the IIJA. The bill cuts the General Fund appropriation for Amtrak by $115 million (4.7%), while increasing funding for Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants by $438 million (403.8%) from the FY 2025 enacted levels.
The bill also includes several policy riders, including prohibiting the use of funds that may contradict POTUS 47’s Executive Orders, such as those related to diversity, equity, and inclusion (DEI), regulatory streamlining, and English proficiency.
Public Transit
The House THUD Appropriations bill and IIJA provide $19.2 billion for public transit in FY 2026, a cut of $1.7 billion (8.3%) from the FY 2025 enacted level. This total funding is $3.1 billion (13.9%) less than the amount authorized in the IIJA.
The bill fully funds the public transit contract authority of $14.64 billion as provided by the IIJA. This funding represents a $363 million increase from the FY 2025 enacted level.
However, the bill significantly cuts total CIG funding, APTA notes. The THUD Appropriations bill and IIJA advance appropriations combined provide $1.65 billion for CIGs, a cut of $2.2 billion (56.5%) from the FY 2025 enacted level. The bill only provides $54 million in General Fund appropriations for CIG funding, a cut of 97.6%. Of the $1.6 billion in advance appropriations, $404 million is available for new fixed guideway projects and $1.2 billion for Small Starts.
“The bill significantly cuts CIG funding even though many public transit agencies are pursuing CIG projects to address the mobility demands of their communities,” APTA said. Currently, communities are requesting $36 billion of CIG funds in FY 2026 and subsequent years to fund construction of 54 projects in 23 states. View APTA’s CIG Project Pipeline Dashboard.
Unlike prior THUD Appropriations Acts, the bill does not provide additional funding above IIJA authorized levels for Buses and Bus Facilities Competitive Grants, Low-No Emission Bus Competitive Grants, or Ferry Grants. However, it does include $96 million for congressionally directed spending (earmarks) on designated public transit projects.
The THUD Appropriations bill does include an important transit policy provision: section 163 of the bill blocks the Rostenkowski Test, preventing a possible across-the-board cut of FY 2026 transit formula funds to each public transit agency. “However, unlike prior THUD Acts, the bill does not prohibit DOT from impeding or hindering a project from advancing or approving a project seeking a CIG Federal share of more than 40%,” according to APTA.
Passenger Rail
The House THUD Appropriations bill and IIJA provide $13.6 billion for passenger and freight rail in FY 2026, a cut of $2.6 billion (15.9%) from the FY 2025 enacted level. This total funding is $7.4 billion (35.3%) less than the amount authorized in the IIJA.
The THUD Appropriations bill provides $2.3 billion for Amtrak grants ($1.4 billion for the National Network and $924 million for the Northeast Corridor). The bill cuts the General Fund appropriation for Amtrak by $115 million (4.7%).
The bill provides $538 million for CRISI grants, an increase of $438 million (403.8%) from the FY 2025 enacted levels. The CRISI grants include $38.4 million for congressionally directed spending for designated CRISI projects.
The bill provides funding for Amtrak and CRISI by transferring $2.8 billion in unobligated FY 2026 funding from the Federal-State Partnership for Intercity Passenger Rail Program. The funding was originally provided through advance appropriations in the IIJA. As a result, the Federal-State Partnership for Intercity Passenger Rail Program will have $4.4 billion (39.7%) available in FY 2026.
Sections 153, 156, and 157 of the bill prohibit any funding for the California High-Speed Rail project, Texas Central Railway project, and Northern Lights Express Intercity Passenger Rail project, respectively.
USDOT Programs
The legislation, APTA says, provides no General Fund appropriation for Better Utilizing Investments to Leverage Development (BUILD) or Mega competitive grants for surface transportation projects, including public transportation and multi-modal projects.
Section 193 prohibits DOT from enforcing a mask mandate in response to the COVID-19 virus in FY 2026.
Section 425 restricts the use of funds that may be used in contravention of POTUS 47’s Executive Orders, including those related to DEI, and regulatory streamlining.
A summary of the House Committee of Appropriations’ 2026 THUD bill is available to download below.
