Before the recent funding deadline hit, the U.S. Senate passed a bill to avoid a government shutdown and layout government funding for the remainder of the fiscal year. Part of this bill was the funding of Transportation, Housing, and Urban Development (THUD) programs through September 30 at the same levels as Fiscal Year 2024.
The continuing resolution alongside the Investment and Jobs Act (IIJA) provides $20.9 billion for public transit and $16.2 billion for passenger rail in FY 2025. This totals approximately $37.1 billion total for transportation across the U.S.
Under the bill, total public transit investment increases less than one percent, and total passenger funding decreases less than one percent. The bill also eliminates all funding designated for earmarks in the FY 2024 THUD Appropriations Act.
Public Transit Funding for FY 2025
With an increase of $82 million from FY 2024, the total funding represents 95% of the amount authorized in the IIJA.
A special provision to allow public transit formula and competitive grant funding to increase by $289 million, as provided in the IIJA, was included.
$3.8 billion for Capital Investment Grants (CIG) is also included in the bill. Communities are currently requesting more than $38.7 billion of CIG funds in FY 2025 and subsequent years to construct 58 projects in 25 states.
Several important policy provisions enacted in the FY 2024 THUD Appropriations Act were also retained. The Rostenkowski Test was blocked, preventing a possible across-the board cut of the FY 2025 transit formula to funds. The DOT is also prohibited form impeding or hindering a project from advancing or approving a project seeking a CIG Federal share of more than 40%.
The legislation also authorizes projects in the Expedited Project Delivery for CIG Pilot Program to be eligible for funding under the CIG program without further evaluation or rating.
Passenger Rail Changes
Passenger Rail funding was decreased for FY2025 by $99 million. This puts the total funding at 78% of the amount authorized by the IIJA.
The passenger rail investments include $7.3 billion for Federal-State Partnership for Intercity Passenger Rail grants, $6.8 billion for Amtrak grants, $1.1 billion for Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants, and $600 million for Railroad Crossing Elimination grants.
The $99 million that was eliminated was designated for CRISI grant earmarks in the FY 2024 THUD Act.
Policy provisions retained from the FY 2024 THUD Appropriations Act include authorizing CRISI grants for commuter railroad projects that implement or sustain positive train control systems. CRISI grants for passenger rail planning and project development activities were also authorized.
The continuing resolution and IIJA also provide $1.8 billion for Better Utilizing Investments to Leverage Development (BUILD) competitive grants for surface transportation projects, including public transportation and multi-modal projects.
