Final 2026 spending advances

House Appropriations Chair Rep. Tom Cole, R-Okla.
"At a time when many believed completing the FY26 process was out of reach, we've shown that challenges are opportunities," said House Appropriations Chairman Tom Cole, R-Okla.
Al Drago/Bloomberg News

The U.S. Department of Transportation would get $108.3 billion for fiscal 2026 and the Federal Emergency Management Agency would enjoy a large spending boost under the final four appropriations bills rolled out late Tuesday.

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The House is expected this week to take up the bipartisan $1.2 trillion package, which marks the last of the 12 appropriations bills for 2026. The Senate will take them up next week when it returns from recess. Congress is aiming to avoid a government shutdown on Jan. 30 when current spending for most government agencies runs out.

"At a time when many believed completing the FY26 process was out of reach, we've shown that challenges are opportunities," House Appropriations Chairman Tom Cole, R-Okla., said in a statement. "It's time to get it across the finish line."

Top appropriators from the House and Senate late Monday released bipartisan agreements for Defense; Labor, Health and Human Services and Education; Transportation, Housing and Urban Development; and Homeland Security. The Homeland Security bill, which includes a $4.7 billion increase for FEMA, may require a separate vote amid controversy over immigration enforcement practices in Minnesota.

The DOT will see $25.1 billion in discretionary funding, a $111 million decrease from fiscal 2025, but its final budget includes $83.2 billion for highway and airport trust programs from previous bills and advance appropriations under the Infrastructure Investment and Jobs Act, according to a Republican summary of the bill. Combined with funding offsets and other provisions, the bill marks an $8.5 billion increase from fiscal 2025.

House Democrats said in a summary that the funding comes in $42.6 billion above President Donald Trump's request and $11 billion more than a previous proposal from House Republicans.

"Where the White House attempted to eliminate entire programs, we chose to increase their funding," said House Appropriations Committee Ranking Member Rosa DeLauro in a statement. 

The bill provides $64.3 billion to the Federal Highway Administration, which is $2 billion above the fiscal 2025 enacted level, most of which go to Highway Trust Fund programs. The Federal Railroad Administration would get a total of $1.8 billion in fiscal 2026, a $1.1 billion decrease that includes a formal recission of $928 million of high-speed rail grants.

Transit agencies in the 11 host cities for the 2026 FIFA World Cup would get an additional $100 million for that event and another $94 million would support transportation during the 2028 Olympic Games.

The budget includes $3.8 billion in earmarks for transportation-housing projects and provides a 9% increase for HUD, including for key homeless and rental assistance programs, according to Democrats.

The appropriations bill is separate from the next surface transportation legislation, which will kick in when the IIJA expires in October. The House expects to start marking up the reauthorization in the next few months.

The Financial Services and General Government and National Security and Department of State bills passed by the House last week will be taken up by the Senate next week. Both chambers have approved an earlier three-bill package that funded, among other departments, the energy and water department and EPA.


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