On January 20, House and Senate Appropriations Committee Leaders unveiled H.R. 7148, the Consolidated Appropriations Act of 2026, which represents a bipartisan, bicameral agreement on Fiscal Year 2026 appropriations legislation. The legislation includes the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 (THUD Appropriations Act).

The final, bipartisan THUD Appropriations Act provides the overwhelming majority of public transit and passenger rail investments authorized in the Infrastructure Investment and Jobs Act (IIJA). According to a release, APTA strongly supports the legislation.

Specifically, the THUD Appropriations Act, together with the IIJA’s advance appropriations, provides a total of $21.1 billion for public transit in FY 2026, an increase of $168 million from the FY 2025 enacted level. In addition, the THUD Appropriations Act and IIJA provide $15.9 billion for passenger and freight rail in FY 2026, a decrease of $298 million from the FY 2025 enacted level.

The House of Representatives is slated to vote on H.R. 7148 in the next couple of days, and the Senate plans to consider the legislation next week, before the January 30 deadline.

Additional information can be found in APTA’s Public Transit Funding Table of the THUD Appropriations Act.

Full Public Transit Funding

The THUD Appropriations Act fully funds the public transit contract authority of $14.6 billion, as provided by the IIJA, which allows the Federal Transit Administration to fund contract authority-backed programs, such as formula grants and bus competitive grants.

The THUD Appropriations Act, together with IIJA advance appropriations, provides $3.3 billion for Capital Investment Grants (CIG), $505 million less than the FY 2025 enacted level. The THUD Act designates this CIG funding for 21 specific projects detailed in the Joint Explanatory Statement that accompanies the legislation.

The legislation funds 10 New Start, two Core Capacity, and nine Small Start projects. View APTA’s H.R. 7148 CIG Allocations for more information on the 21 designated projects.

The legislation requires FTA to make allocations to the designated projects within 120 days of the date of enactment of the THUD Appropriations Act. Moreover, FTA may not deviate from the listed funding amount for each project by more than 10%.

The THUD Appropriations Act also provides an additional $211.4 million for specific initiatives, including:

• $25 million for passenger ferry grants under the Urbanized Area Program (including $4 million for low- or zero-emission ferries) and $20 million for ferry service in rural communities;

• $15 million for operating costs to improve public safety, reduce crime, and increase security for the 10 public transit agencies with the highest ridership in FY 2024; and

• $147.9 million for Congressionally Directed Spending (earmarks) on designated public transit projects.

THUD Act Adds Funding for World Cup and Olympics Transit

In addition, section 166 provides $100.3 million for planning, operating, and capital grants to public transit agencies in cities hosting the FIFA World Cup. The funding is distributed by a formula that considers stadium seating capacity and the number of matches in each host city. The Federal share is up to 100%.

Similarly, section 165 provides $94.3 million for transportation assistance, including planning, operating, and capital assistance, to support the 2028 Olympic and Paralympic Games. The Federal share is generally up to 80%. For the supplemental public transit bus system, the Federal share is at least 90%.

Finally, the Act includes several important public transit policy provisions that have been included in prior THUD Appropriations Acts:

• Section 163 blocks the Rostenkowski Test, preventing a possible across-the-board cut of FY 2026 transit formula funds to each public transit agency.

• Section 164 prohibits the U.S. Department of Transportation from impeding or hindering a project from advancing or approving a project seeking a CIG Federal share of more than 40%.

• Section 193 prohibits the DOT from enforcing a mask mandate in response to the COVID-19 virus in FY 2026.

Rail Funding Falls Short of IIJA Targets

The THUD Appropriations Act and IIJA provide $15.9 billion for passenger and freight rail in FY 2026, a decrease of $298 million from the FY 2025 enacted level. This total appropriation is $5.1 billion less than the amount authorized in the IIJA.

Specifically, the act appropriates $2.4 billion for Amtrak grants ($1.6 billion for National Network grants and $850 million for the Northeast Corridor), which is $1 million less than the FY 2025 enacted level.

The legislation provides $137 million for Consolidated Rail Infrastructure and Safety Improvement (CRISI) grants, an increase of $37 million from the FY 2025 enacted level. The THUD Appropriations Act provides $87 million for specific CRISI projects and allows CRISI grants to be used for commuter railroad projects that implement or sustain positive train control systems.

The IIJA provides $7.2 billion for the Federal-State Partnership for Intercity Passenger Rail Grants, and the THUD Appropriations Act provides an additional $65 million, a decrease of $10 million from the FY 2025 enacted level.

Finally, section 156 rescinds $928.6 million for high-speed and intercity passenger rail grants originally provided in 2010 (P.L. 111-117).

Congress Seeks Greater Oversight of DOT Awards and Grant Backlog

The THUD Appropriations Act and IIJA provide $1.6 billion for Better Utilizing Investments to Leverage Development (BUILD) competitive grants (formerly RAISE, formerly TIGER) for surface transportation projects, including public transportation and multi-modal projects. The THUD Appropriations Act provides $145 million for BUILD grants in FY 2026, $200 million below the FY 2025 enacted level. The legislation sets aside 5% of these funds for grants for historically disadvantaged communities or areas of persistent poverty.

The legislation also includes new oversight requirements on DOT grantmaking. Section 185 requires DOT to notify the House and Senate Committees on Appropriations before making, withdrawing, terminating, or rescinding a discretionary grant, loan, loan guarantee, or a Full Funding Grant Agreement. In addition, the Joint Explanatory Statement directs DOT to brief the House and Senate Appropriations Committees detailing the scope of DOT’s grant review backlog, how staffing shortfalls at the modal administrations and the Office of the Secretary may contribute to this backlog, and the department’s plan to improve grant processing timelines and capacity.

Finally, the Joint Explanatory Statement directs the Government Accountability Office to conduct a study on congestion pricing that examines the impacts on safety, emissions, and congestion, as well as the financial impacts on personal vehicle drivers, public transit users, bicyclists, and pedestrians.