Funding for IIJA transportation programs set to expire

Road work in Angier, N.C. Road, bridge and safety projects nationwide are threatened by a lapse in transportation safety funding. (Allison Joyce/Bloomberg)

A lapse in transportation safety funding could trigger $36.8 billion in automatic cuts Sept. 30, threatening road, bridge and safety projects nationwide as Congress struggles to advance a long-term highway bill.

The funding uncertainty stems from Congress’ failure to extend advance appropriations authorized under the Infrastructure Investment and Jobs Act, which expires Sept. 30.

While House legislation approved Sept. 1 to keep the federal government funded through Dec. 11 extended surface transportation programs, several grant programs that support roadway safety improvements, bridge work and locally driven infrastructure projects were left out. This oversight prompted warnings from local government, trucking and engineering groups about delays and project disruptions.

Congress has yet to complete work on a long-term IIJA replacement. The House Transportation and Infrastructure Committee approved the five-year BUILD America 250 Act in May, but the measure has not been considered by the full House. Senate lawmakers have yet to release or advance their own version of a surface transportation reauthorization bill.

Absent congressional action, several transportation programs funded through advance appropriations under the 2021 infrastructure law will lose funding authority beginning Oct. 1. Those programs include the BUILD competitive grant program and the Safe Streets and Roads for All program.

The BUILD America 250 Act would authorize about $580 billion in transportation funding over five years. The bill also would consolidate several existing programs, including BUILD grants, while reducing funding for some of them.

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President Joe Biden signs the Infrastructure Investment and Jobs Act during a ceremony on the South Lawn of the White House on Nov. 25, 2021. (Stefani Reynolds/Bloomberg News)

“A lot of what has been cut is really spot treatment for safety issues and the duct tape of our transportation system,” said Brittney Kohler, legislative director for transportation and infrastructure services at the National League of Cities. “I think we’re looking at a slate of automatic cuts that will impact down to the safety issue nearest to you all the way to that large strategic investment that Congress was trying to make with this last big infrastructure bill.”

Congress extended programs supported through the Highway Trust Fund, preserving formula funding for highway and transit projects. However, advance appropriations authorized under Division J of the IIJA remain unfunded until Congress takes further action. Those dollars support grants and other investments tied to roads, bridges, rail projects and transportation safety initiatives.

The BUILD program provides grants for surface transportation projects with significant local or regional impact that are difficult to fund through traditional programs. Fiscal 2026 awards included projects in Ohio and West Virginia focused on highway improvements, transit access and roadway connectivity.

The Safe Streets and Roads for All program supports local road safety projects. According to the Department of Transportation, communities that received funding through the program had experienced about 1,000 roadway fatalities and 7,000 serious injuries over a five-year period.

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Hanscom 

“America’s economy depends on a safe and reliable transportation network, and that requires consistent, long-term investment,” Henry Hanscom, chief advocacy and public affairs officer for American Trucking Associations, told Transport Topics. “The last thing we need is uncertainty that delays critical projects or puts infrastructure funding at risk. The cost of inaction is already beginning to mount. Congress has made real progress on a bipartisan highway bill, and we encourage lawmakers to keep that momentum going and get it across the finish line.”

Kohler noted that delays to transportation improvements carry both economic and human costs since many projects have completed planning stages and are waiting for funding opportunities.

“These are projects that could have happened and made everyone’s lives safer and better,” she said. “We certainly want to make sure everyone makes it home on time, and driving and getting out on the road certainly shouldn’t be one of the most dangerous things you do all day.”

Carlos Condarco, director of government relations for the American Society of Civil Engineers, said the funding gap will create uncertainty for infrastructure projects and the engineers responsible for delivering them.

The group is advocating for Congress to pass a new five-year surface transportation reauthorization. Until lawmakers reach an agreement, ASCE is urging Congress to include Division J funding in any temporary extension of transportation programs.

The National League of Cities is encouraging local officials to ask lawmakers during the election season whether they support restoring the transportation funding. Kohler said one possible legislative vehicle could be a defense supplemental package.

She added that the group recently joined the National Governors Association, National Conference of State Legislatures, Council of State Governments, U.S. Conference of Mayors, National Association of Counties and International City/County Management Association in meetings with congressional leaders to urge action on transportation and other federal funding priorities after the election and in the next Congress.