Congress is cutting transportation investments that help families save money

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The loss of guaranteed federal funding could cripple projects that make it easier and cheaper for Americans to get where they need to go.

UPDATE: An update from the Senate Commerce Committee on October 27, 2026 chopping block The report provided a state-by-state assessment of the damage to transportation systems if Congress does not renew the $36.8 billion in advance appropriations funds from the Bipartisan Infrastructure Act. Led by Ranking Member Cantwell, the report shows that these cuts will only lead to greater costs for families and businesses across the country.

At a time when Americans are struggling to pay amazing prices At the pump and the Trump administration sowing uncertainty in states and communities by clawing back funds committed to transportation infrastructure, Congress is taking steps to reduce federal funding most critical to affordable, clean transportation.

The need for continued funding is clear: Transportation costs are the second largest household expense in the United States, and our roads and transit infrastructure remain structurally inadequate. However, state transportation and transit authorities face a significant funding gap due to the expiration of the Bipartisan Infrastructure Act (BIL) on September 30, 2026. Over the past five years, the infrastructure act has provided a guaranteed pool of funding worth $36.8 billion for transportation projects. These “early appropriations” cover a wide range of programs and include large amounts of funding for clean transportation, such as electric vehicle (EV) charging infrastructure projects, transportation, and rail investments. This funding has helped state transit and transportation authorities plan longer-term projects and has been instrumental in the infrastructure law’s support of nearly 70,000 unique transportation projects across the country.

But transportation funding from the infrastructure law ran out on September 30, 2026, and while Congress approved a short-term extension through December 11, 2026, it does not include these guaranteed dollars. This means that, during the three months of the extension, states will lack the continuity and certainty they need to plan both large and small-scale infrastructure projects.

To add insult to injury, Congress also appears to be contemplating leaving this guaranteed funding out of the next transportation bill. the house BUILD America 250 Act The proposal, released in May, proposes cutting all advance appropriations funds. In fact, the proposal cuts transportation funding from current infrastructure bill levels by nearly 50 percent, leaving Americans without access to travel options to help defray rising costs.

How is the Bipartisan Infrastructure Act funding different and what does it fund?

Historically, transportation bills have included authorizations for two types of funding: (1) contractual authority, which is supported by revenues flowing into the Highway Trust Fund, and (2) general funds, which Congress must “appropriate” and appropriate annually. The current infrastructure law includes another category (early appropriations) that makes money available in the future for certain programs without requiring any congressional action in future years, guaranteeing states and communities secure funding over the five-year period of the bill. This certainty allows states plan ahead for future projects and grant opportunities.

Any cuts to this pot of money require a sledgehammer to clean up transportation programs that reduce domestic costs and improve the health of our communities. Particular programs at risk include the National Electric Vehicle Infrastructure Programthat helps states build a national network of electric vehicle chargers; Capital Investment Grants, a transit-related discretionary grant program; and the Reconnecting Communities Pilot, which aims to address harm caused by past transportation decisions. Also worrying are the BUILD and MEGA grants, which help support the construction of transit, bicycle and pedestrian infrastructure.

Congress must reauthorize all infrastructure law funds

Congress is unlikely to reach an agreement on a new bill before the current extension ends in December 2026, meaning there is an opportunity to include early appropriations in any future extension of the current infrastructure law and the next transportation bill so that states and local governments can avoid having to deal with temporary or potentially even permanent funding interruptions. This guaranteed funding is even more important as transportation decision makers face interference from the Trump administration with implementation and financing guidance. The recovery of additional funds will only serve to halt progress. Sustained funding will also allow state and local governments to continue building on the progress the current infrastructure law made on clean transportation investments.

Even more importantly, American households are currently struggling to cover their basic daily needs, and rising gasoline prices have left many looking for ways to save on their transportation costs. In 2024, when gas prices averaged less than $3.50 per gallon (a far cry from the current average price of $4.35 per gallon), transportation was the second-largest cost for American households. with an average of 17 percent of the family budget. Cutting early funding allocations for transportation, electric vehicle charging, and rail will only serve to penalize households struggling the most, at a time when such investments would give Americans access to a wide range of affordable, reliable, and safe transportation options.

By Shruti Vaidyanathan, Director of Transportation, Climate and Energy Advocacy, NRDC