Appropriations process grinds into gear in Congress

Rep. Tom Cole, R-Okla., at a House subcommittee meeting in May 2025.
"Everyone from the traveling public to freight haulers will benefit from improved reliability and systems," said House Appropriations Committee Chair Tom Cole, R-Okla.
Bloomberg News

With the GOP's budget reconciliation tax package signed into law, Congress is grinding through the appropriations process that will fund the day-to-day operations of government agencies and determine discretionary funding levels for major transportation modes.

"With targeted investments in surface transportation infrastructure, everyone from the traveling public to freight haulers will benefit from improved reliability and systems," said House Appropriations Committee Chair Tom Cole, R-Okla. "We prioritize safer skies through enhanced air traffic control personnel and technology and also bolster maritime defenses." 

Transportation infrastructure spending was a major policy focus for the Biden administration and is emerging mostly as a winner in the budget battles of the Trump administration while the requirements for awarding grants evolve.     

Federal grants typically require local matching funds that are often financed by issuing bonds. 

The Transportation, Housing and Urban Development, and Related Agencies Appropriations Bill set for a markup session on Monday would provide a total discretionary allocation of $89.91 billion, which is $4.458 billion below the fiscal year 2025 enacted level.

The U.S. Department of Transportation's slice of that is currently set a bit over $22 billion, which is $3.149 billion below the enacted level and $4.744 billion below the Office of Management and Budget's request.

The chairman's summary of the math lays out the totals. 

"Taken together with $83.285 billion in obligation limitation for highway and airport trust fund programs, the bill provides $105.078 billion in total budgetary resources to improve the safety and efficiency of our nation's transportation system." 

The Federal Aviation Agency is slated for a $2.3 billion bump in funding compared to last year. The Federal Highway Administration would get $1.97 billion more. 

The Federal Railroad Administration would see an increase of $198 million, while the Federal Transit Agency would be cut by $1.777 billion. 

DOT Secretary Sean Duffy is expected to testify before the House Transportation and Infrastructure Committee this week to discuss the agency's policies, programs, and budget request. 

The Department of Housing and Urban Development is set up for a $939 million haircut. 

The appropriations process is already running behind schedule as the final numbers on twelve separate bills were due on June 30. The new fiscal year begins Oct. 1. 

The bills move through each house of Congress going from markup to subcommittee approval, full committee approval, initial passage, resolution of House-Senate differences, and final presidential approval. 

The House version of the Military Construction - Veterans Affairs is currently in the lead by advancing to the initial passage stage but the Senate version is still being marked up. 

The Senate advanced the Agriculture and the Legislative Branch appropriations to the committee approval stage last week, marking their high-water marks of progress so far. 

With the appropriation process is happening in the background, the House Financial Service Committee is pushing the agenda behind Crypto Week which seeks to provide consumer protection and updated regulatory guidance on digital currency. 

The Senate is preoccupied by a recission proposal that would cut money for public broadcasting and foreign aid which was already passed in the House with a thin margin.

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Infrastructure Trump administration Politics and policy Washington DC
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