The U.S. Department of Transportation could see a $1.5 billion increase in its discretionary budget authority in fiscal year 2026, a 6% increase over the current fiscal year, if President Donald Trump’s budget request is enacted. Funding for public transit, passenger and freight rail would increase.
“This increased investment will help communities across the nation expand access to reliable, efficient public transportation while supporting millions of American jobs and driving economic growth,” American Public Transportation Association President and CEO Paul Skoutelas said in a statement. “These investments will benefit American manufacturers and suppliers who build the buses, railcars, and other equipment that keep our public transit systems running.”
Here are five takeaways from the president’s proposed fiscal 2026 budget for the transportation department:
- The Federal Transit Administration’s budget would remain in line with the current fiscal year at $21.2 billion, including $4.3 billion in advance appropriations from the Infrastructure Investment and Jobs Act. That is $1 billion less than authorized for fiscal 2026 by the infrastructure law.
- The budget request proposes a 1.5% funding increase for public transit along with increases for the Infrastructure for Rebuilding America and Consolidated Rail Infrastructure and Safety Improvements grant programs.
- Funding for Amtrak remains essentially unchanged but shifts resources from the Northeast Corridor to the railroad’s national network.
- The budget requests $3.8 billion for Capital Investment Grants, in line with current spending, but provides more flexibility by eliminating certain IIJA allocations for New Start, Core Capacity, Small Starts and Expedited Project Delivery Pilot Program projects, according to an APTA analysis.
- The president asked for an additional $500 million for the Consolidated Rail Infrastructure and Safety Improvements program, which would go toward grade crossing improvements, upgrades to intercity passenger rail services and short line railroad infrastructure.
“The request focuses on supporting DOT’s core safety mission while also investing in big, beautiful transportation infrastructure,” the president’s budget said.
The Federal Aviation Administration would benefit from the largest increase in funding to address air traffic control issues, while approximately $5.7 billion in funding for electric vehicle charging programs would be cut.
