FY 2026 THUD Appropriations Act backs major transit and rail funding

The FY 2026 THUD Appropriations Act in H.R. 7148 has been welcomed by the American Public Transportation Association (APTA); APTA Passenger Transport notes it forms part of the Consolidated Appropriations Act, 2026 and would fund most Infrastructure Investment and Jobs Act (IIJA)-authorised public transit and passenger rail projects.

This is reported by the railway transport news portal Railway Supply.

APTA said the package, combined with IIJA advance appropriations, would direct 21.1 billion USD in public transit funding and 15.9 billion USD in passenger and freight rail funding. The association added that federal public transport investment supports economic activity, jobs, manufacturing, and domestic supply chains.

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Paul P. Skoutelas, APTA’s President and Chief Executive Officer, said the agreement reflects the view that public transit and passenger rail are essential national infrastructure. He said predictable funding gives agencies room to keep investing in capital projects, safety initiatives, and reliable service used by millions of Americans every day.

Public transit funding priorities in FY 2026

Public transit funding in FY 2026 totals $21.1 billion, which the proposal frames as $168 million above FY 2025 levels. Federal Transit Administration formula grants and competitive bus grants would be funded at authorised levels.

The bill also sets $3.3 billion aside for Capital Investment Grants (CIG) across 21 New Start, Core Capacity, and Small Start projects, with allocations to be distributed within 120 days. It earmarks $211.4 million for ferry grants, public safety operations, and Congress-directed projects, and includes $100.3 million for transport needs tied to the FIFA World Cup, plus $94.3 million for the 2028 Olympic and Paralympic Games. Key transit policies remain in place as well, including protections against across-the-board formula cuts and safeguards for CIG project development.

Passenger and freight rail funding for Amtrak and CRISI

For passenger and freight rail, the legislation provides $15.9 billion. Within that amount, $2.4 billion in grants to Amtrak would support the National Network and the Northeast Corridor, as reported by Reuters.

The measure would also increase CRISI grants to $137 million to improve safety and infrastructure, including positive train control.

Department of Transportation programmes and next steps

Department of Transportation programmes in the proposal include $1.6 billion for BUILD grants, including $145 million in discretionary funding. It would also add oversight and transparency requirements for Department of Transportation discretionary grants.

The House is scheduled to vote on H.R. 7148 in the coming days, and the Senate is expected to consider the bill before the 30 January deadline. APTA urged Congress to approve the legislation promptly to maintain consistent federal support for public transport and passenger rail, amid broader FY 2026 rail funding debates tracked by Railway Supply.

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