The House Committee on Appropriations on July 17 voted 35-28 to pass the fiscal year 2026 Transportation, Housing and Urban Development, and Related Agencies or THUD bill, containing a major change compared to previous THUD measures by transferring to other programs a portion of “advance appropriations” funds allocated by the Infrastructure Investment and Jobs Act or IIJA of 2021.
[Above photo by AASHTO]
The House Appropriations Committee noted the total discretionary allocation within the FY 2026 THUD bill is more than $89.9 billion, which is just over $4.4 billion or 4.7 percent below the FY 2025 enacted level. The FY 2026 bill provides a non-defense discretionary total of more than $89.5 billion and a defense discretionary total of $388 million. A summary of the FY 2026 bill is available here, while the bill’s full text is available here.
“Building stronger, traveling safer, and supporting American households are the foundations of this FY 2026 bill,” noted Tom Cole (R-OK), chairman of the House Appropriations Committee, in a statement. “With targeted investments in surface transportation infrastructure, everyone from the traveling public to freight haulers will benefit from improved reliability and systems. We prioritize safer skies through enhanced air traffic control personnel and technology and also bolster maritime defenses.”
According to analysis by the American Association of State Highway and Transportation Officials, the bill honors IIJA’s $83.3 billion in obligation limitation for Trust Fund programs, including $62.7 billion for the federal-aid Highway Program and $14.6 billion for transit formula programs.
However, AASHTO pointed out that unlike prior year appropriations bills that did not touch IIJA’s advance appropriations funds, the FY 2026 THUD bill proposes to transfer $5.4 billion of various IIJA advance General Fund appropriations accounts – including from the National Electric Vehicle Infrastructure or NEVI formula funding program – to “plus up” or add funding to various “regular” General Fund appropriations accounts.
AASHTO also detailed the dissemination of proposed FY 2026 THUD bill funding changes for each modal administration within the U.S. Department of Transportation:
- Federal Highway Administration: Receives $63.7 billion in obligation limitation from the Highway Trust Fund for the federal-aid Highway Program, along with $954 million from the General Fund in Congressional earmarks; Transfers $200 million of advance appropriations from Reconnecting Communities Pilot program to Tribal Transportation program; Transfers $200 million of advance appropriations from National Culvert Removal and Replacement program to the Infrastructure for Rebuilding America or INFRA grant program; makes no changes to the August Redistribution process.
- Federal Transit Administration: Receives $14.6 billion in obligation limitation for formula programs from the Highway Trust Fund, along with $97 million from the General Fund in Congressional earmarks; the $54 million in General Fund support in Capital Investment Grants is a major reduction from the $2.2 billion allocated in the FY 2025 THUD bill.
- Federal Railroad Administration: No new General Fund appropriations for Amtrak, but the bill transfers $1.4 billion from Federal-State Partnership or FSP program to the Amtrak National Network and $925 million from the FSP to the Amtrak Northeast Corridor; provides $309 million from the General Fund for safety and operations, and research and development; transfers $500 million from FSP advance appropriations to the Consolidated Rail Infrastructure and Safety Improvements or CRISI grant program along with a further $38 million from the General Fund.
- Federal Aviation Administration: Receives $13.8 billion for operations from the Airport and Airway Trust Fund or AATF and the General Fund; receives $4 billion for the Airport Improvement Program from the AATF; receives $4 billion in Facilities and Equipment from the General Fund with a $1 billion plus-up from the NEVI program and a $1 billion plus-up from advance appropriations Facilities and Equipment. [Note: the recently-passed HR 1 budget reconciliation measure contained additional $12.5 billion in air traffic control upgrade funding for the FAA.]
- Office of the USDOT Secretary: No new General Fund appropriations for Rebuilding American Infrastructure with Sustainability and Equity or RAISE grants, with $1.5 billion from IIJA advance appropriations maintained; receives $514 million for the Essential Air Services program from the General Fund; rescinds $10 million of General Fund outlays issued by the American Rescue Plan Act of 2021.
AASHTO also noted that the House Appropriations work on the FY 2026 THUD bill kicks off the annual appropriations cycle for USDOT programs, though at this pace – and awaiting Senate’s version of the THUD bill – the organization said another Continuing Resolution is expected at the end of the current fiscal year on September 30.
Top Stories
