AASHTO Journal - Updated: Senate Passes Minibus Containing THUD Bill

On January 30, the Senate passed the fiscal year 2026 Transportation-Housing and Urban Development or THUD funding bill as part of a modified “minibus” legislative package by a vote of 71-29.

[Above photo by AASHTO]

That modified minibus measure fully funds five out of the six remaining FY 2026 appropriations bills including the THUD appropriations through September 30, while separating out funding for the Department of Homeland Security via a two-week continuing resolution or CR.

[Editor’s note: A summary of the THUD funding bill originally passed by the House of Representatives on January 23 can be found here.]

However, the American Association of State Highway and Transportation Officials noted that because the CR from November 2025 pertaining to these six appropriations bills expired January 30 and because the House was not in session this past week and will not return until Monday, February 2, a partial government shutdown is currently in effect for federally-funded THUD, Defense, Financial Services, Labor, Health and Human Services, Education, State, and Homeland Security programs.

The House will attempt to pass the Senate-passed minibus via suspension of the rules on Monday, which requires a two-thirds majority vote.

Expecting this latest shutdown, The U.S. Department of Transportation issued an updated “Plans for Operations During a Lapse in Annual Appropriations” on January 30. USDOT noted that the impact of this partial shutdown will vary, with 11,632 employees furloughed out of 53,058 total employees – with 10,552 furloughs taking place just at the Federal Aviation Administration.

Yet AASHTO also noted that employees paid under trust fund contract authority, offsetting fees, or revolving funds will not see a funding lapse – meaning the current partial shutdown will not affect anyone at the Federal Highway Administration, the Federal Motor Carrier Safety Administration, the National Highway Traffic Safety Administration, or the Federal Transit Administration whose staff are funded from the Highway Trust Fund.

AASHTO added that, for state departments of transportation, FHWA’s reimbursement of cash will remain unaffected.