Miles SmithFunding for public transit, passenger and freight rail improvements could increase by as much as $1.5 billion in fiscal year (FY) 2026, if the president’s proposed budget for the U.S. Department of Transportation is approved.
The President’s FY 2026 discretionary budget request, released in May, included $21.2 billion for public transit and $16.5 billion for passenger rail in FY 2026, when combined with the advance appropriations included in the Infrastructure Investment and Jobs Act (IIJA).
Highlights of the proposed budget include:
- $4.3 billion in advance appropriations from the IIJA, $1 billion less than authorized for FY 2026 by the infrastructure law.
- A 1.5% funding increase for public transit includes increases for the Infrastructure for Rebuilding America and Consolidated Rail Infrastructure and Safety Improvements grant programs.
- $6.8 billion for Amtrak, including $4.8 billion for National Network grants and $2.1 billion for Northeast Corridor grants. That amount for Amtrak remains essentially unchanged over the current fiscal year, but it shifts resources from the Northeast Corridor to the National Network
- The budget requests $3.8 billion for Capital Investment Grants, in line with current spending, but provides more flexibility by eliminating IIJA allocations for New Start, Core Capacity, Small Starts and Expedited Project Delivery Pilot Program projects, according to an analysis by the American Public Transportation Association.
- An additional $500 million for the Consolidated Rail Infrastructure and Safety Improvements program is proposed, which would go toward grade crossing improvements, upgrades to intercity passenger rail services and short line railroad infrastructure.
