The House Appropriations Committee approved the FY 2027 transportation funding bill that would cut nearly $10.7 billion (10.4%) for highway construction below the FY 2026 levels. The measure advanced 34-27, with all Republicans supportive and all Democrats opposed. Because FY 2027 marks the first year after the expiration of the Infrastructure Investment and Jobs Act (IIJA) which authorized the highway funding for the past five years, much uncertainty surrounds where funding levels will be set for the next five years. The committee redirected $7.8 billion in unspent IIJA funds, including $5.1 billion from federal rail programs, to fund various transportation accounts.
The appropriations bill is moving on a parallel track with the surface transportation reauthorization process, with the current law expiring Sept. 30. It is unclear where Congress is heading with funding authorization for the surface transportation programs. The approved proposal may serve as a holding place for future funding until an authorization is approved. Timing for action in the full House is uncertain and the Senate is waiting for agreement on top level spending targets before moving ahead with the individual spending bills.