What Happened?

Millions of Americans who rely on buses, subways, and commuter rail could face reduced service and longer waits. The federal law that authorizes public transportation funding expires Sept. 30, and a Congressional Research Service (CRS) report examining a House bill called the BUILD America 250 Act lays out what could change.

The administration's budget request for fiscal year 2027 would cut funding to the Federal Transit Administration (FTA), the agency that distributes federal transit dollars, by 22 percent. That works out to roughly $4.8 billion less than current levels.

Why Does It Matter to Me?

The law now expiring, the Infrastructure Investment and Jobs Act (IIJA), provided about $21.4 billion a year for public transportation from 2022 through 2026, according to the Congressional Research Service. That was roughly two-thirds more than the previous authorization.

The BUILD America 250 Act would not continue that level of guaranteed, multiyear funding. It would also eliminate a dedicated program for low- and zero-emission buses, which the IIJA had grown from $55 million a year to $1.1 billion a year.

Americans already took about 8.1 billion transit trips in 2025, though that is still about 19 percent below pre-pandemic levels. Ridership on buses, subways, and commuter rail has not fully recovered, and service cuts would likely slow that recovery further.

The Department of Transportation's own 2024 report estimated a $127.8 billion backlog in repairs and upgrades needed across the country's transit systems, measured in 2025 dollars. That figure is from 2018 data, so the real gap could be larger today.

Both Sides, Now

Supporters of the BUILD America 250 Act and the proposed budget reductions argue that consolidating transit formula funding into a voluntary state block grant program gives states and localities more flexibility to direct money where they need it most.

Critics point to the math: less federal money, a growing repair backlog, and a shrinking FTA workforce. The agency's staff dropped from 781 full-time employees in fiscal year 2024 to 552 in fiscal year 2026. The administration has proposed cutting that further to 547. That is a roughly 29 percent reduction from 2024 levels, leaving fewer federal workers to manage grant programs and oversight.

The BUILD America 250 Act was introduced in the House. Congress must pass a new authorization or an extension before Sept. 30, or transit agencies will lose the legal foundation for their federal funding.

What Happens Next?

The Sept. 30 deadline is firm. If Congress does not pass a new surface transportation law or a short-term extension by then, the current authorization lapses.

Portland's transit agency, TriMet, announced service cuts and layoffs in May 2026, a signal of what other agencies could face if federal support shrinks. No Senate companion bill has been identified in the source material, and no vote is scheduled as of this report.

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