US rail and transit funding cuts are part of the Fiscal Year 2027 budget request. The US administration released it on 7 April 2026. The proposal would lower funding for public transport and passenger rail.

US Budget Request Seeks Rail and Transit Funding Cuts
Photo: a2b Global Media

Under the plan, public transit funding would total 16.3 billion USD. That is 23 percent below earlier levels. Meanwhile, passenger rail would face a steeper drop. Funding would be set at 2.8 billion dollars, down by 82 percent.

FY2027 budget request and public transit funding

The Federal Transit Administration’s FY 2027 budget estimates say those advance appropriations would not continue. They were provided under the Infrastructure Investment and Jobs Act. At the same time, several existing funding streams would face smaller allocations or no continuation.

Separately, affected programmes include:

  • Capital Investment Grants, reduced by 1.6 billion USD
  • Low or No Emission Competitive Grants, reduced by 1.05 billion USD
  • State of Good Repair grants, reduced by 950 million USD
  • the All Station Accessibility Programme, reduced by 350 million USD
  • Ferry Competitive Grants, reduced by 250 million USD

US rail and transit funding cuts for passenger rail programmes

Passenger rail funding would be particularly affected under the proposal. The Federal Railroad Administration’s FY 2027 budget estimates show a 7.2 billion USD reduction. It would apply to the Federal-State Partnership for Intercity Passenger Rail programme.

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They also show a 500 million USD cut to Railroad Crossing Elimination Grants. In addition, these reductions would affect funding streams. Those streams are used for intercity rail development, infrastructure upgrades and safety improvements.

What happens next to passenger rail funding?

The FY27 budget request sets out the administration’s proposed spending plan. Still, Congress will review and negotiate it before any final funding decisions are made.

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