AASHTO Journal - House Passes FY 2026 THUD Bill Within Minibus Package

On January 19, the House of Representatives Committee on Appropriations released the legislative text of the fiscal year 2026 Transportation-Housing and Urban Development or THUD funding bill as part of a four-bill “minibus” that also includes proposed federal funding for Defense, Homeland Security, Labor, Health and Human Services, and Education. The House subsequently passed that minibus by a vote of 341 to 88 on January 22, sending it to Senate for consideration.

[Above photo by AASHTO]

According to analysis by the American Association of State Highway and Transportation Officials, the FY 2026 THUD bill provides $111.5 billion in net budgetary resources to the U.S. Department of Transportation and fully honors the Highway Trust Fund obligation limitation provided in the Infrastructure Investment and Jobs Act or IIJA of 2021 for FY 2026.

Notably, the bill repurposes $2.3 billion in General Fund advance appropriations from IIJA’s Division J, landing between the $4.4 billion proposed in the House THUD bill and the $745 million proposed in the Senate THUD bill for FY 2026.

[Editor’s note: The THUD bill text starts at page 466 of the four-bill minibus here, the joint explanatory statement is here, and the House Appropriations Committee’s summary is here. Additionally, AASHTO, the American Road & Transportation Builders Association, and the Associated General Contractors of America spearheaded an industry letter to Congressional leadership urging passage of the FY 2026 THUD bill.]

Specific modal funding appropriations proposed in the THUD bill include:

Federal Highway Administration: $62.7 billion in obligation limitation from the Highway Trust Fund or HTF. From the General Fund for highway infrastructure programs: $1.5 billion for earmarks, $350 million in bridge formula for low density/small population states, $200 million for federal/tribal projects, and $200 million truck parking. Altogether, there is $927 million in new General Fund appropriations for the FHWA in the THUD bill.
Federal Transit Administration: $14.6 billion in obligation limitation from the HTF. From the General Fund for Transit Infrastructure Grants (TIG) funding: $148 million for earmarks, $45 million for ferries, and $15 million for public safety. Altogether there is $23 million in new General Fund appropriations for FTA in the THUD bill.
Federal Railroad Administration: Receives an additional $265 million for safety and operations from the General Fund, with General Fund and IIJA Division J funds for Amtrak supporting the Northeast Corridor ($850 million) and National Network ($1.6 billion) needs.
Federal Aviation Administration: $13 billion from Airport and Airway Trust Fund or AATF for operations and $669 million from the General Fund; $4 billion from AATF for the Airport Improvement Program or AIP; $577 million in IIJA Division J and new General Fund appropriations for AIP; and $4 billion in new General Fund appropriations for Facilities and Equipment.
Federal Motor Carrier Safety Administration: $542 million for Motor Carrier Safety Grants and $390 million for operations and programs from the HTF.
National Highway Traffic Safety Administration: $850 million for Highway Traffic Safety Grants from the HTF; $210 million from the HTF for operations and research; and $200 million from the General Fund, including IIJA Division J transfers.
Office of the Secretary of Transportation: An additional $145 million in new appropriations for BUILD grants from the General Fund and $514 million in Essential Air Services subsidies; rescinds $205 million of unobligated dollars from the Strengthening Mobility and Revolutionizing Transportation (SMART) Grants program.

In a separate recent development, AASHTO also noted that the FHWA’s initial estimate for FY 2026 August Redistribution is $8.5 billion, which is notably higher than the $7.6 billion issued in 2025.