Local governments across the country are facing a federal transportation funding loss of nearly $37 billion in the coming fiscal year
That, according to a new report published by the National League of Cities, is because members of Congress will most likely not renew a five-year reauthorization of the big Infrastructure Investment and Jobs Act.
Because both the House and Senate have not been able to agree on a full-fledged reauthorization bill the “U.S. will see a substantial $36.8 billion in automatic cuts to transportation programs starting September 30.”
Those cuts will impact some 26 individual competitive grant programs described as “very popular for local governments.”
Those programs include the Better Utilizing Investments to Leverage Development, liked by local governments for its “flexibility, economic potential, and multimodal approach.”
Also at risk: the Safe Streets and Roads for All initiative, which has provided funding for work improving intersections, sidewalks and signals; and the Railroad Crossing Elimination and Consolidated Rail Infrastructure and Safety Improvements programs, both supporting rail safety and short-line railroad projects.
The National League of Cities suggests that the only way that funding for the Infrastructure Investment and Jobs Act can continue would be for Congress, after the mid-term elections, to approve legislation designed to extend support for the various transportation grant initiatives.
But any such action will have to be taken in a compressed time frame, as the government has an operation funding deadline of December 11.
September 25, 2026
By Garry Boulard
Photo courtesy of Pixabay
