House Moves Transportation Budget on Party Line Vote

On June 3, 2026, the U.S. House Committee on Appropriations approved its fiscal year 2027 Transportation, Housing and Urban Development (THUD) appropriations bill by a 34–27 party line vote, sending to the House floor a funding measure that would stymie the recent progress made on passenger rail and public transit.

While Republican leaders framed the bill as a “modernized infrastructure” proposal for highways, ports, and aviation, transit advocates sharply criticized the bill for deep cuts to rail and transit programs and for relying on a controversial $7.9 billion repurposing of previously enacted infrastructure funds.

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Rail and Transit Funding: Cuts, Restructuring, and Reprogramming

The bill provides roughly $3.1 billion in new appropriations for passenger and freight rail, alongside targeted allocations such as:

• $1.45 billion for Amtrak’s National Network
• $650 million for the Northeast Corridor
• $523 million for CRISI grants
• $100 million for rail crossing safety improvements

At first glance, some of these figures represent stable or even increased funding within the constrained discretionary topline. However, the broader funding picture is far more negative.

The legislation eliminates or repurposes billions in advance appropriations from the Federal-State Partnership for Intercity Passenger Rail program, resulting in a net loss of rail investment compared to FY2026 levels. By shifting previously committed capital funds, the bill trades long-term expansion for short-term operating support, undermining the pipeline of new intercity rail projects.

(Millions of dollars)
Programs	FY26 Enacted	FY27 Presidential Request	FY27 House Proposed
Amtrak - NEC	$850	$650	$650
Amtrak - Nat'l Network	$1,577	$1,450	$1,450
FRA Operations	$265	$271	$271
Fed-State Partnership for IPR/SOGR	$65	$0	$0
CRISI Grants	$137	$300	$523
RR Crossing Elimination Grants	$0	$100	$100
Restoration & Enhancement Grants	$0	$0	$0
Subtotal	$2,894	$2,771	$2,994
IIJA - Guaranteed Funds
CRISI Grants	$1,000	$0	$0
Amtrak - NEC	$1,200	$0	$0
Amtrak - Nat'l Network	$3,200	$0	$0
RR Crossing Elimination Grants	$600	$0	$0
Fed-State Partnership for SOGR	$7,200	$0	$0
Total	$16,094	$2,771	$2,994

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Public Transit: Steep Cuts and Program Constraints

Public transportation programs face particularly severe reductions:

• Total public transit funding drops to about $16.5 billion, a 22% cut from FY2026
• Capital Investment Grants (CIG)—the main program for new transit rail and bus rapid transit projects—falls to $737 million, a 78% reduction

As the American Public Transit Association was quick to point out, these reductions come despite an existing backlog of roughly $31 billion in requested transit capital projects nationwide for 49 projects in 23 States, highlighting the disconnect between demand and funding levels.

The bill also tightens congressional control over CIG spending by requiring detailed project-by-project allocations, limiting the Trump Administration’s administrative flexibility by prohibiting the USDOT from deviating from that amount by more than 10 percent.

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Controversy Over “Repurposing” of $7.9 Billion in IIJA Funds

Perhaps the most contentious aspect of the markup is the bill’s reliance on $7.9 billion in “repurposed” funds from the 2021 Infrastructure Investment and Jobs Act (IIJA)—money that had already been allocated as multi-year advance appropriations.

Instead of allowing those funds to flow toward their originally intended capital projects, the appropriations bill redirects them to annual discretionary programs, including Amtrak operations and grants, transit infrastructure grants and CIG, rail safety and the CRISI program—even non-surface programs like aviation infrastructure.

Much of the funding comes specifically from unobligated balances in the Federal-State Partnership for Intercity Passenger Rail program, a cornerstone IIJA initiative intended to expand rail service nationwide.

This maneuver amounts to double-counting or backfilling, using money already provided in prior legislation to meet current budget priorities identified by House GOP leadership. The House allocation for THUD is $10.7 billion below FY2026, reflecting a decision to reallocate discretionary outlays to other areas—including Pentagon spending and border enforcement.

This effectively undermines the IIJA’s multi-year investment framework, which was designed to provide predictable, sustained funding for large-scale infrastructure projects.

Redirecting these funds could lead to:

• Cancellation or delays for future rail expansion projects
• Weakening of state-led planning efforts dependent on federal matching funds
• Erosion of confidence in long-term federal commitments

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Broader Policy Implications

The FY2027 THUD markup highlights a transition moment in federal transportation policy. The expiration of the IIJA leaves Congress without a new multi-year authorization framework, forcing appropriators to once again rely on short-term fixes for long-term investment problems. Rail and transit—especially capital expansion programs—are being squeezed to fit within tighter discretionary limits.

If enacted, the bill would mark a shift away from the IIJA’s emphasis on network expansion and modernization toward a more constrained approach focused on maintaining existing systems.

The fate of these provisions—and the broader direction of U.S. rail and transit policy—will depend on negotiations with the Senate Appropriators—which requires a more bipartisan approach—and the outcome of the debate over the shape of the next surface transportation reauthorization.

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This is a bad bill—but there’s still time to make your voice heard!

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