The U.S. House of Representatives Committee on Appropriations approved the fiscal year 2027 Transportation, Housing and Urban Development, and Related Agencies or THUD Appropriations Act on June 3 by a vote of 34 to 27.
[Above photo by AASHTO]
“The FY 2027 THUD bill invests in modernized infrastructure, mobility, and community priorities that will keep our nation moving forward,” noted Rep. Tom Cole (R-OK), chair of the Appropriations Committee, in a statement.
“Whether on our highways, in our ports, across our waterways, or through our skies, the measure reinforces the networks that keep America safely connected and competitive,” he said. “It further supports local development efforts and assistance for vulnerable Americans, ensuring communities have the resources to grow, adapt, and thrive.”
Cole added that, with approval of the THUD funding bill, the House Appropriations Committee has now advanced nine FY 2027 appropriations bills, “continuing to move both the appropriations process and the nation’s priorities forward through regular order,” he emphasized.
According to analysis by the American Association of State Highway and Transportation Officials, there is a significant reduction in discretionary budget allocation provided for in the FY 2027 THUD bill, which amounts to a $10.7 billion or 10.4 percent reduction from the FY 2026 allocation.
AASHTO said that means that the House Appropriations Committee is “relying significantly” on the repurposing of unused advance appropriations funds in the Infrastructure Investment and Jobs Act or IIJA to close the budget allocation gap, to the tune of $7.9 billion in the FY 2027 THUD bill.
Key elements of that $7.9 billion “repurposing” of unobligated IIJA advance appropriations include:
- Shifting $1 billion from the Federal Highway Administration’s National Electric Vehicle Infrastructure or NEVI formula program to Federal Aviation Administration’s Facilities and Equipment program.
- Moving $1.1 billion from the FHWA Highway Infrastructure Program to fund $725 million for highway earmarks, $200 million in tribal programs, and $200 million for truck parking grants.
- Repurposing Federal Railroad Administration Fed-State Partnership program funds to provide $1.45 billion to the Amtrak National Network; $650 million to the Amtrak Northeast Corridor; $523 million to Consolidated Rail Infrastructure and Safety Improvements or CRISI rail grants; $100 million for Railroad Crossing Elimination grants; $973 million to Transit Infrastructure Grants; $737 million to Federal Transit Administration Capital Investment Grants; $538 million to the U.S. Maritime Administration Port Infrastructure Development Program; $100 million to the USDOT’s Office of the Secretary for “DC Safe and Beautiful” funding needs; and shifting $500 million from USDOT National Culvert Removal, Replacement, and Restoration Grants to Better Utilizing Investments to Leverage Development or BUILD discretionary grants.
AASHTO also noted that, due to the expiration of IIJA on September 30, the THUD bill freezes Highway Trust Fund obligation limitation amounts for FY 2027 at the current FY 2026 level.
However, should there be a new surface reauthorization bill in place to provide new contract authority for FY 2027 before the passage of the final FY 2027 THUD package, there would be an opportunity to line up the obligation limitation and new contract authority levels.
