U.S. Government Shutdown Impacts on Public Transportation

10/1/2025

The U.S. Congress and President Trump did not reach a bipartisan, bicameral agreement to enact a continuing appropriations act, or Continuing Resolution (CR), and a government shutdown began Oct. 1. The impacts of a government shutdown on USDOT agencies vary considerably.

The personnel of some agencies, such as FTA and the Federal Highway Administration, are financed by budget resources other than annual appropriations (e.g., the Highway Trust Fund). Therefore, these employees are not furloughed during a government shutdown. FTA operations will continue, and FTA will be able to reimburse transit agencies for previously approved projects. However, it is unlikely that FTA will be able to approve new grants.

Conversely, 239 employees (23 percent) of FRA are furloughed during the government shutdown. Remaining FRA personnel are focused primarily on activities necessary to protect life and property (e.g., FRA safety inspections).