Senate Committee Advances FY26 Transportation Appropriations Bill

The Senate Committee on Appropriations marked up S. 2465, the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 (Senate THUD Appropriations bill) July 24. The committee reported the bipartisan legislation by a vote of 27-1 from the Senate Committee. Earlier this month (July 14), the House Committee on Appropriations marked up its THUD Appropriations bill (H.R. 4522) and approved it on a party-line vote of 35-28. View APTA’s Legislative Alert on the House THUD Appropriations bill.

The Senate THUD Appropriations bill appropriates the overwhelming majority of public transit and passenger rail funding authorized by the Infrastructure Investment and Jobs Act (IIJA). Specifically, the bill, together with the IIJA’s advance appropriations, provides a total of $21.1 billion for public transit in FY26, an increase of $203.3 million (1 percent) from the FY25 enacted level and $1.94 billion more than the House THUD Appropriations bill. The bill, together with the IIJA’s advance appropriations, provides $3.55 billion for Capital Investment Grants (CIG), a decrease of $255 million from FY25 enacted levels, and $1.9 billion more than the House THUD Appropriations bill. APTA’s CIG Project Pipeline Dashboard.

In addition, the Senate THUD Appropriations bill and IIJA provide $16.2 billion for passenger and freight rail in FY26, an increase of $36.5 million from the FY25 enacted level, and $2.6 billion more than the House THUD Appropriations bill.

The bill appropriates $2.4 billion for Amtrak, a significant increase from the House bill.

The Senate THUD Appropriations bill provides an additional $334.8 million for new and existing programs, of which $193.9 million was repurposed from unobligated funds from the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (P.L. 109-59). The bill also includes several important transit policy provisions. Section 163 blocks the Rostenkowski Test, preventing a possible across-the-board cut of FY25 transit formula funds to each public transit agency. Section 164 prohibits USDOT from impeding or hindering a project from advancing or approving a project seeking a CIG federal share of more than 40 percent.

Section 166 provides a 100 percent federal share for § 5310 Enhanced Mobility of Seniors & Individuals with Disabilities and § 5311 Rural Area formula grants obligated in FY26.

Section 167 expands public transit agencies’ authority to acquire land prior to completion of National Environmental Policy Act (NEPA) review. Specifically, the provision amends 49 U.S.C. § 5323(q) by replacing the term “right-of-way” with “real property interests”, thereby expanding the opportunity for broader property acquisition prior to the completion of environmental reviews. This provision would bring FTA’s property acquisition authority into parity with Federal Highway Administration programs. View APTA’s Fact Sheet on Real Property Acquisition.

Finally, concerning Chinese rolling stock procurement prohibitions, section 168 prohibits funds from being used to award or amend a contract for bus or rail rolling stock with a manufacturer that, at any time, met the criteria outlined in § 5323(u), including any entities resulting from a reorganization or restructuring or any successor organizations regardless of whether the reorganized, restructured, or successor entity currently meets those restrictions.

View APTA’s Public Transit Funding Table of the Senate and House THUD Appropriations bills.

Passenger Rail

The Senate THUD Appropriations bill and IIJA provide $16.2 billion for passenger and freight rail in FY 2026, an increase of $36.5 million from the FY25 enacted level and $2.6 billion more than the House THUD bill (19 percent). This total funding is $4.8 billion (-23 percent) less than the amount authorized in the IIJA.

Specifically, the bill appropriates $2.4 billion for Amtrak grants ($1.6 billion for the National Network and $850 million for the Northeast Corridor), which is $114.4 million (5 percent) more than the FY25 enacted level. The accompanying report calls for continued research into wayside bearing defect detection systems, in line with the National Transportation Safety Board’s recommendations from its investigation into the derailment in East Palestine, Ohio.

The Senate THUD Appropriations bill provides $151.5 million for Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants, an increase of $51.5 million (52 percent) from the FY25 enacted level. The bill also provides $75 million in additional funding for the Federal-State Partnership for Intercity Passenger Rail grants.

View APTA’s Passenger Rail Funding Table of the Senate and House THUD Appropriations bills.

USDOT Programs

The Senate THUD Appropriations bill provides $250 million, in addition to the $1.5 billion of advance appropriations included in the IIJA, for the Better Utilizing Investments to Leverage Development (BUILD) competitive grant program for surface transportation projects, including public transportation and multi-modal projects.

Learn more in APTA’s latest Legislative Update.

View APTA’s FY26 Priorities Letter to Senate THUD Appropriations Subcommittee.

View the Senate Committee on Appropriations Summary of S. 2465, the THUD Appropriations bill.

View S. 2465, the THUD Appropriations bill.

View S. 2465, the THUD Appropriations bill Committee Report (S. Rpt. 119-47).

View the Congressionally Directed Spending Items of S. 2465, the THUD Appropriations bill.

APTA’s Industry Footprint shows every public transit system, supplier, and manufacturer by congressional district and state. APTA members can use this resource during congressional meetings to show their Members of Congress the importance of the public transportation industry to their regional economy.