THUD Subcommittee Advances FY27 Appropriations Bill
5/22/2026
The House Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittee has approved H.R.____, the THUD Appropriations Act, 2027, on a 9-7 party-line vote. The bill now advances to the full House Appropriations Committee for consideration June 4.
With the current surface transportation authorization law, the Infrastructure Investment and Jobs Act (IIJA), set to expire Sept. 30, 2026, and no successor authorization legislation yet enacted, the bill freezes Highway Trust Fund contract authority at FY26 levels for public transit, federal-aid highways, and highway safety programs. The legislation also excludes advance appropriations.
The proposal significantly reduces funding for public transportation and passenger rail compared with FY26 enacted levels. Public transit funding would total $16.5 billion in FY27, a reduction of $4.6 billion, or 22 percent. Capital Investment Grants (CIG) funding would fall to $737 million, a 78 percent cut from FY26 levels, including only $31 million for Small Starts projects. The bill also directs Congress—not the Administration—to specify individual CIG project funding levels, limiting deviations to 10 percent.
View APTA’s CIG Project Pipeline Dashboard.
APTA noted that transit agencies nationwide are currently seeking approximately $31 billion in future CIG funding for 49 projects in 23 states. Despite the cuts, the legislation includes several targeted investments, including $875 million tied to the 2028 Olympic and Paralympic Games, $10 million for bus driver protection barriers, and $86.7 million in Congressionally Directed Spending for transit projects. The bill also blocks implementation of the “Rostenkowski Test,” preventing across-the-board reductions to transit formula funding.
View APTA’s Public Transit Funding Table of H.R. ____, the THUD Appropriations Act, 2027.
Passenger and freight rail programs would also see deep reductions. The bill provides $3.1 billion for passenger and freight rail while transferring $5.1 billion in unobligated Federal-State Partnership for Intercity Passenger Rail funds to other initiatives, resulting in a net funding loss of $1.9 billion and an overall reduction of $17.8 billion from FY26 enacted levels.
Amtrak grants would total $2.1 billion, down 69 percent from FY26, while Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants would receive $522.8 million, a 54 percent reduction. The Railroad Crossing Elimination Program would receive $100 million, down 83 percent. The bill also prohibits FY27 funding for the Texas Central high-speed rail project.
View APTA’s Passenger Rail Funding Table of H.R. ____, the THUD Appropriations Act, 2027.
Additional provisions include $550 million for BUILD grants, $70 million for Union Station redevelopment, $30 million for Washington Metropolitan Area Transit Authority safety and operational support, continued restrictions on Chinese rolling stock procurement, and language prohibiting USDOT from enforcing a COVID-19-related mask mandate in FY27.
View the House Committee on Appropriations Summary of H.R. ____, the THUD Appropriations Act, 2027.