Authored by Michael Dorgan, Policy Manager
Federal funding for public transit and passenger rail faces significant uncertainty following the expiration of the Infrastructure Investment and Jobs Act (IIJA) on September 30, 2026.
A temporary funding extension signed into law on September 2 does not include the advance appropriations previously provided under the IIJA, resulting in significant funding reductions compared to funding previously approved for fiscal year 2026:
- Public Transit: A $4.2 billion reduction (approximately 20% of funding)
- Passenger Rail: A $12.9 billion reduction (approximately 81% of funding)
These reductions deeply impact transit agency operations, ongoing infrastructure projects, and thousands of US businesses across the transit supply chain. According to the American Public Transportation Association (APTA), every $1 invested in public transportation generates $5 in long-term economic benefits, and 77% of federal public transportation investment flows to the private sector.
As the incoming Congress navigates Surface Transportation Reauthorization and the FY2027 Appropriations process, maintaining IIJA funding levels will be important for helping transit agencies and fleet operators continue serving their riders without significant disruptions, and preserves momentum on ongoing projects. Sustained federal investment is also critical to advancing transportation priorities such as safety, rural mobility, and new technologies. Preserving IIJA funding levels in future full-year funding legislation will help ensure continued progress in these areas.
CTE is circulating an industry sign-on letter to members of Congress in key districts and committee positions, demonstrating broad support for sustained federal transportation investment. Organizations across the transportation industry are invited to add their names to the letter by contacting Michael Dorgan, CTE Policy Manager, at dorgan@cte.tv. By signing on, your organization is helping demonstrate an industry-wide call for Congressional Members to prioritize sufficient funding for key transportation programs in the coming years.
