THUD takes a hit in appropriations

Rep. Tom Cole R-Okla.
"Whether on our highways, in our ports, across our waterways, or through our skies, the measure reinforces the networks that keep America safely connected and competitive," said Chairman Cole.  
House Appropriations Committee

The Byzantine process of funding the federal government advanced last week as the House Appropriations Committee took a $10.7 billion or 10.4% bite out of discretionary funding for transportation infrastructure as compared to last year, despite pleas from industry. 

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"The American Road & Transportation Builders Association urges the committee to restore highway and transit funding to the full fiscal year 2026 enacted levels." 

Before the vote happened, ARTBA voiced its concerns in a letter sent to Rep. Rosa DeLauro D-Conn., the Ranking Member of the committee. The letter was sent in response to a subcommittee recommendation in May that called for cutting funding by $15 billion. 

The approved funding reduction was computed by the American Association of State Highway and Transportation Officials, who place the cut in the discretionary end of the budget as opposed to the formula programs. 

Some discretionary grants require local matching funds that may spur bond sales.

According to AASHTO the committee is also looking to move leftover funding from the Investment and Jobs Act by which will close gap between last year and this year to about $7.9 billion. 

The financial juggling includes shifting $1 billion from the Federal Highway Administration's National Electric Vehicle Infrastructure formula program to the Federal Aviation Administration. 

Just over a billion dollars will move from the FHWA's Infrastructure Program to fund $725 million for highway earmarks, $200 million in tribal programs, and $200 million for truck parking grants.

Movements between passenger rail, public transit, port infrastructure and the D.C Safe and Beautiful funds account for the rest. 

The bill also freezes Highway Trust Fund obligation limitation amounts for fiscal year 2027 at the current fiscal 2026 level.

Rep. Tom Cole R-Okla., who chairs Appropriations, didn't identify any winners or losers in his statement. 

"Whether on our highways, in our ports, across our waterways, or through our skies, the measure reinforces the networks that keep America safely connected and competitive," he said. 

"It further supports local development efforts and assistance for vulnerable Americans, ensuring communities have the resources to grow, adapt, and thrive."

According to AASHTO, "should there be a new surface reauthorization bill in place to provide new contract authority for FY 2027 before the passage of the final FY 2027 THUD package, there would be an opportunity to line up the obligation limitation and new contract authority levels."  

The appropriations process begins with the President submitting a budget proposal in February, the House working on markups through committees on the 12 bills with a finish date of June 30. 

The Senate does the same thing on its side, then differences are negotiated with the goal of getting a presidential signature on everything before the end of the fiscal year Sept. 30. 

Failure can result in a Continuing Resolution, an unpopular option. 

Passing the THUD bill means the House Appropriations Committee has now advanced nine of their 12 bills and is "continuing to move both the appropriations process and the nation's priorities forward through regular order," said Cole.


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