The loss of guaranteed federal funding could stall projects that make it easier and cheaper for Americans to get where they need to go.
📌 The Core Development
UPDATE: On October 27, 2026, an update to the Senate Commerce Committee’s Chopping Block report provided a state-by-state assessment of the harm to transportation systems if Congress fails to renew the Bipartisan Infrastructure Law’s $36.8 billion in advance appropriations funding. Led by Ranking Member Cantwell, the report demonstrates that these cuts will only drive increased costs for families and business across the country.
At a time when Americans are struggling to pay staggering prices at the fuel pump and the Trump administration sows uncertainty for states and communities by clawing back committed transportation infrastructure funds, Congress is moving to scale back more critical federal funding for affordable and clean transportation.
🔍 Background & Sector Context
The need for consistent funding is clear: Transportation costs are the second-largest household expense in the United States, and our roads and transit infrastructure remain structurally inadequate . Nevertheless, state transportation and transit authorities are facing a significant funding cliff due to the expiration of the Bipartisan Infrastructure Law (BIL) on September 30, 2026. Over the past five years, the infrastructure law has provided a guaranteed pot of funding worth $36.8 billion for transportation projects. These “advanced appropriations” cover a wide breadth of programs and include large amounts of funding for clean transportation, such as electric vehicle (EV) charging infrastructure projects, transit, and rail investments. This funding has helped state transit and transportation authorities plan for longer-term projects and has been critical to the infrastructure law’s support of almost 70,000 unique transportation projects across the country.
But transportation funding from the infrastructure law ran out on September 30, 2026, and while Congress passed a short-term extension until December 11, 2026, it does not include these guaranteed dollars. This means that, for the three-month duration of the extension, states will lack the continuity and certainty they need to plan for both large- and small-scale infrastructure projects.
📊 Industry & Real-World Impact
To add insult to injury, Congress also seems to be contemplating leaving this guaranteed funding out of the next transportation bill altogether. The House BUILD America 250 Act proposal, released in May, proposes cutting all advanced appropriations funding. The proposal, in fact, slashes transportation funding from current infrastructure law levels by almost 50 percent, leaving Americans without access to travel options that help defray rising costs.
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🔮 Strategic Outlook & What Lies Ahead
Historically, transportation bills have included authorizations of two types of funding: (1) contract authority, which is supported by revenues that flow into the Highway Trust Fund and (2) general funds, which Congress has to “appropriate” and assign annually. The current infrastructure law includes another category—advanced appropriations—which makes money available in the future for certain programs without the need for any congressional action in future years, guaranteeing states and communities secure funding over the five-year bill period. This certainty allows for states to plan in advance for future projects and grant opportunities.
Any cut to this pot of money takes a sledgehammer to clean transportation programs that reduce household costs and improve the health of our communities. Particular programs at risk include the National Electric Vehicle Infrastructure program , which helps states build a national network of EV chargers; the Capital Investment Grants, a transit-related discretionary grant program; and the Reconnecting Communities Pilot, which aims to address harms caused by past transportation decisions. Also of concern are the BUILD and MEGA grants, which help support the build-out of transit, bicycle, and pedestrian infrastructure.
