This week the House Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Subcommittee unveiled the THUD Appropriations Act, 2026.  The House THUD Appropriations bill significantly cuts public transit compared to the authorized levels in the Infrastructure Investment and Jobs Act (IIJA).   The House THUD Appropriations bill and IIJA provide $19.2 billion for public transit in FY 2026, a cut of $1.7 billion (-8.3 percent) from the FY 2025 enacted level. This total funding is $3.1 billion (-13.9 percent) less than the amount authorized in the IIJA.

The bill fully funds the public transit contract authority of $14.64 billion as provided by the IIJA. This funding represents a $363 million increase from the FY 2025 enacted level.

However, the bill significantly cuts total Capital Investment Grant (CIG) funding. The THUD Appropriations bill and IIJA advance appropriations combined provide $1.65 billion for Capital Investment Grants, a cut of $2.2 billion (-56.5 percent) from the FY 2025 enacted level. The bill only provides $54 million in General Fund appropriations for CIG funding, a cut of 97.6 percent. Of the $1.6 billion in advance appropriations, $404 million is available for new fixed guideway projects and $1.2 billion for Small Starts.

The bill significantly cuts CIG funding even though many public transit agencies are pursuing CIG projects. St.  Louis currently has a project in project development phase – the Jefferson Alignment MetroLink Expansion Project.  In total, communities are  currently requesting $36 billion of CIG funds in FY 2026 according to APTA and subsequent years to fund construction of 54 projects in 23 states.

View APTA’s CIG Project Pipeline Dashboard.

Section 5339 formula and grant programs (Buses and Bus Facilities and Low- and No- Emission projects) received full funding at the IIJA-Authorized Levels, including Advanced Appropriations. It also includes $96 million for congressionally directed spending (earmarks) on designated public transit projects.

Complete bill: fy26-transportation,-housing-and-urban-development,-and-related-agencies-subcommittee-mark.pdf