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Congress Passes Continuing Resolution and Surface Transportation Authorization Extension Act

September 2, 2026

 

Congress Passes Continuing Resolution and Surface Transportation Authorization Extension Act

Cuts Public Transit Funding by 20 percent and Passenger Rail Funding by 81 percent

On September 1, 2026, the House of Representatives passed H.R. 6500, the Continuing Appropriations and Extensions Act, 2027, by a vote of 370-48, clearing the bill for the President. The bill is both a Continuing Resolution (CR) that funds the Federal Government, including Federal Transit Administration (FTA), Federal Railroad Administration (FRA), and U.S. Department of Transportation (DOT) programs, and a short-term Surface Transportation Authorization extension through December 11, 2026. Prior to House consideration, the Senate passed the bill by a vote of 90-6 on August 8.

It is critical that Congress enact a Surface Transportation Extension Act because, without it, surface transportation programs would shut down on October 1. However, the bill does not include advance appropriations, a form of guaranteed funding provided by the Infrastructure Investment and Jobs Act (IIJA).

Without advance appropriations, the bill cuts Federal public transit investment by 20 percent from current Fiscal Year (FY) 2026 funding levels. It cuts passenger rail investment by 81 percent, and passenger rail receives no guaranteed funding.

Public Transportation Investments

H.R. 6500 extends Highway Trust Fund contract authority programs and programs funded by regular appropriations at FY 2026 levels. However, the bill does not continue advance appropriations, which currently provide $4.25 billion annually for public transit and $13.2 billion annually for passenger rail investments.

Without advance appropriations, the bill cuts total Federal public transit investment by 20 percent from current FY 2026 funding levels. The legislation cuts passenger investment by 81 percent, and passenger rail receives no guaranteed funding.

In a July 31 letter, APTA detailed the programs that will be disproportionately cut if advance appropriations are not provided in FY 2027, including Buses and Bus Facilities Grants, State of Good Repair Formula Grants, Capital Investment Grants (CIG), and Federal Railroad Administration programs. APTA also joined multiple Coalition letters supporting DOT advance appropriations.

To date, Senate Democrats have sent three separate 2026 letters urging Congress to provide DOT advance appropriations. In addition, on August 31, the bipartisan leaders of the House Problem Solvers Caucus sent a letter echoing the call for Congress to continue DOT advance appropriations.

Please view APTA’s Public Transit Funding Table of the Continuing Appropriations and Extensions Act. In addition, please view the State-by-State Cuts to Public Transit Formula Funds and the Urbanized Area Cuts to Public Transit Formula Funds of the legislation.

Please view APTA’s Passenger Rail Funding Table of the Continuing Appropriations and Extensions Act.

Capital Investment Grants

Section 149 of Division A of the bill extends the disbursement authority of certain CIG projects that face impending lapses. APTA urged Congress to include this provision, which was also included in the White House Office of Management and Budget (OMB) list of “anomalies” for the CR.

Office of Management and Budget Proposed Rule on Uniform Guidance

Section 157 of Division A of the bill prohibits OMB from issuing a final rule on its proposed revisions to the “Uniform Guidance” through December 11, 2026. APTA urged Congress to prohibit implementation of the proposed rule.

OMB’s proposed rule would amend procedures for Federal grant management under 2 CFR 200 and other parts of 2 CFR. View APTA’s letter, to OMB highlighting its serious concerns with OMB’s Notice of Proposed Rulemaking on Federal Financial Assistance. In the letter, APTA urged OMB to withdraw its proposed rule.

On August 31, 2026, APTA joined more than 100 national organizations in a Coalition letter to House Appropriations Committee leaders urging Congress to stop OMB from implementing its proposed rule.