A continuing resolution (CR) providing fiscal year (FY) 2027 appropriations to federal agencies through Dec. 11, 2026, was signed into law Sept. 2 by President Donald Trump.  

The CR, H.R. 6500, Continuing Appropriations and Extensions Act, 2027, extend federal surface transportation programs and authorities, including those for public transit and passenger rail, that were set to expire Sept. 30. Most programs and actives are funded by the CR at FY26 levels.  

“Passing a multi-year surface transportation reauthorization bill before the end of this Congress remains a top priority for me and the Transportation and Infrastructure Committee,” said Rep. Sam Graves (R-MO-6) in a statement, who serves as chair of the House Transportation and Infrastructure (T&I) Committee. “However, [the] House passage of the continuing resolution was important to prevent any lapse in federal surface transportation programs and to ensure the continued operation of the federal government in general.” 

What this means for transit and passenger rail 

While it’s good news that an immediate government shutdown will be avoided, funding levels for transit and passenger rail are more grim. Notably, the CR doesn’t include advance appropriations for public transit or passenger rail. According to the American Public Transportation Association (APTA), this results in a 20% cut from current public transit funding levels and an 81% cut in passenger rail—on top of no guaranteed funding for passenger rail.  

According to a letter APTA sent July 31, advance appropriations “provide $4.25 billion annually for public transit and $13.2 billion annually for passenger rail programs.”  

There are two more slightly positive outcomes from the CR, one of which has to do with the Capital Investment Grants (CIG) program funding. CIG funding that was available for obligation through FY21 will remain available through FY 2031 for certain projects with valid obligations incurred between FY 2018-2021. This was something APTA advocated that Congress include in any extension.  

The other more positive outcome regards the White House Office of Management and Budget’s (OMB) proposed rule that would impact grant funding. In the CR, the OMB is not allowed to issue its final rule that would revise uniformed guidance “which would politicize the grant process,” Sen. Susan Collins (R-ME), chair of the Senate Appropriations Committee, said in a statement. 

This is in line with an APTA priority, which voiced concerns about the proposed rule in a July 15 letter sent to the chair and ranking member of the House Committee on Appropriations. While this doesn’t prevent the rule being issued indefinitely, it does prohibit it from moving forward through Dec. 11, 2026.  

What’s next 

With funding levels set through Dec. 11, the industry will shift its focus to pushing its priorities for the next full, five-year surface transportation reauthorization bill. According to a Sept. 1 statement made to POLITICO, House Speaker Mike Johnson said he plans to “wrap up the bill this year.” 

Graves voiced a similar sentiment in a statement, noting the House T&I Committee’s bipartisan approval of the BUILD America 250 Act (H.R. 8870). 

“I look forward to moving this bill through the legislative process and working with the Senate to complete a long-term bill that invests in America’s roads, bridges and other surface infrastructure, cuts red tape in the project process, and ensures that states have the certainty and flexibility to carry out the projects most critical to them,” Graves said in the statement.  

Additionally, APTA is continuing to urge its members and the industry at large to advocate for favorable transit and passenger rail outcomes. In the House’s BUILD America 250 Act released back in May, APTA President and CEO Paul Skoutelas acknowledged several of the association’s goals were included in the bill, noting it’s a “significant milestone” and “a lot to applaud in this bipartisan legislation.”  

However, APTA emphasizes that more work needs to be done, particularly following the U.S. Department of Transportation issuing its own priorities for the next bill, which included eliminating the Mass Transit Account entirely and instead folding all federal fuel tax revenue into the Highway Account.  

APTA is hosting an advocacy fly-in day Sept. 16 in Washington, D.C., so members can meet with elected officials to advocate for transit and passenger rail priorities.