Federal Transit and Rail Cuts Take Effect as IIJA Advance Funding Lapses
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Steep cuts to federal public transit and passenger rail funding are set to take effect Thursday after advance appropriations from the 2021 Infrastructure Investment and Jobs Act (IIJA) lapse, leaving agencies and communities bracing for delays, project cancellations and new uncertainty.
The stopgap funding bill signed by President Donald Trump on Sept. 3 extends transportation programs funded by the Highway Trust Fund at fiscal year 2026 levels. But it does not continue the advance appropriations provided by the IIJA, the sweeping law that boosted federal surface transportation spending. The stopgap measure funds the government until Dec. 11.
The American Public Transportation Association estimates the stopgap measure will result in a 20% cut to public transit investment and an over 80% cut to passenger rail. APTA says smaller communities and rural towns are “especially vulnerable” as key transit and rail grant initiatives face significant reductions.
The timing leaves little room for a quick fix: the House of Representatives went into recess on Sept. 17, and the Senate is expected to leave by the end of this week. Congress is not expected to return until Nov. 9, after the midterm elections.
More than a funding decline
According to APTA, the absence of new surface transportation legislation or a continuation of the IIJA advance appropriations amounts to more than a decline in funding. Paul Skoutelas, APTA president and CEO, warned in a July 31 letter to House and Senate leaders that it “will immediately disrupt and delay ongoing planning, engineering, and construction of surface transportation projects across the nation and inject uncertainty into future State and local investment decisions.”
APTA leaders and public transportation officials met with members of Congress on Sept. 16 to urge them to restore the advance appropriations. In a press release, the group said: “Key public transit and passenger rail grant initiatives face significant reductions, with smaller communities and rural towns especially vulnerable.”
For riders and local agencies, the practical effect could be a slower pipeline of new buses, railcars, station upgrades and service expansions—especially in places that rely on federal grants to fill gaps that local tax revenue cannot cover. Industry analysts say the uncertainty itself can be as damaging as the lower funding totals, because agencies may postpone decisions until they know what Congress will do.
Roads, bridges and safety programs also affected
Road funding is not spared either. Kevin Shen, a senior analyst at the Union of Concerned Scientists, wrote in a Sept. 24 blog post that despite an over $40 billion annual maintenance backlog, bridge funding will be cut significantly “without any measures to prioritize roadway maintenance over expensive expansions.”
Funding for pedestrian and bicyclist safety programs was also cut, according to UCS. Shen noted that the transition to a new Congress and a crisis over the debt limit “will add more challenges to transportation negotiations.”
Chris White, founding partner and COO of Thompson Research Group, said in an email to Smart Cities Dive that uncertainty over both funding levels and availability will lead to postponement or slow-walking of new projects until a new bill is passed.
“The longer Congress takes to pass a new bill, the longer it will take transportation agencies to re-engage,” White said.
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