Trump Extends Federal Transportation Funding Minus $13.5B for Transit, Rail

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U.S. President Donald Trump recently signed a bill extending federal funding to prevent a shutdown of the U.S. government. And the extension includes several omissions from the previous transportation funding bill.

The Continuing Appropriations and Extensions Act 2027 is, according to a White House press release, a short-term continuing resolution to provide fiscal-year 2027 appropriations through December 11 of this year. This applies to continuing federal projects and activities for many programs, including surface transportation.

Notably missing from the extension that Trump signed September 2, however, are the advance appropriations included in Biden’s 2021 Infrastructure Investment and Jobs Act. According to a news release from the American Road & Transportation Builders Association, this amounts to losing about $13.5 billion in funding set aside for highway and public transportation.

Analysis from the American Public Transportation Association states the removal of the advance appropriations, which function as guaranteed funding from Biden’s IIJA, will cut public transit investment by 20% and cut passenger rail investment specifically by 81%, compared to the current funding level.

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Authorization of USDOT’s surface transportation programs was set to expire September 30 without a new multi-year reauthorization bill or extension of the current programs. Congress now has until the December 11 expiration of the funding extension to finalize a new surface transportation reauthorization.

In a July 22 letter to congressional committee leadership, U.S. Transportation Secretary Sean Duffy outlined the Trump administration’s proposals and recommendations for a new surface transportation bill, designed to “tackle emerging challenges from our highways, bridges, transit systems, and freight networks.” Duffy highlighted ending advanced appropriations in a surface bill extension.