A stopgap spending bill that the Senate advanced Monday will keep highway and transit programs running through mid-December, but it leaves a critical gap: more than $38 billion in annual federal transportation funding is set to expire on September 30 without renewal.
The Senate voted 89-4 on the temporary measure, which reauthorizes highway and transit programs but does not restore advance appropriations for transportation funding that were included in the 2021 bipartisan infrastructure law. That law provided $184 billion in advance appropriations over five years to support multiple transportation programs and other federal agencies. When the infrastructure law expires at the end of September, states and the federal government will lose access to roughly $38.6 billion per year in extra transportation funding—a sum that has been crucial for infrastructure projects across the nation.
The loss represents a significant disruption to the transportation landscape. About 30 percent of the extra funding, roughly $10.8 billion annually, is determined by formula and distributed to states based on established metrics. The remaining 70 percent comes through 25 competitive grant programs that have funded specialized projects and initiatives.
Which Programs Face Funding Loss
Ten formula-based programs will be affected by the September 30 expiration. The Federal Highway Administration’s bridge repair program stands to lose $5.5 billion per year, the single largest hit to any program. Airport construction funding will drop by $3 billion annually, while the Federal Transit Administration’s grant program faces a $950 million annual reduction. State transportation departments will also lose $900 million in annual funding for EV charging station development.
States face sharp disparities in the impact. California, the nation’s most populous state, would lose nearly $1.1 billion in funding, while smaller states like Vermont would experience a $55.6 million reduction in formula funds. The geographic and programmatic spread of the cuts underscores the law’s role in funding transportation infrastructure across multiple modes and regions.
Ben Gilsdorf, representing transportation interests, told sources that the funding loss would hit several of the most consequential programs. “It’s not all of the programs under the infrastructure law that would stop without an extension. But for us, it’s several of the most impactful ones,” Gilsdorf told the Idaho Capital Sun, noting that officials anticipate further opportunities to secure renewal funding before the cutoff takes effect October 1.
Congressional Action Stalls
Senate Appropriations Chair Susan Collins, a Maine Republican, advanced the stopgap measure without addressing the advance appropriations shortfall in her announcement. Senate appropriators have not yet reached agreement on total spending levels for fiscal 2027, a necessary precondition for crafting a comprehensive transportation funding reauthorization.
The temporary measure keeps programs operational through December 11, creating a narrow window for Congress to negotiate a permanent solution. Without action before the September 30 deadline, states and transportation agencies will face immediate budget reductions and project delays across infrastructure categories that have relied on the infrastructure law’s funding stream since Former President Joe Biden signed it into law in 2021.
What Comes Next
Congress must resolve the advance appropriations gap before the infrastructure law expires in less than two months. Senate appropriators face pressure to reach consensus on fiscal 2027 spending levels, a prerequisite for any comprehensive transportation funding renewal. The December 11 deadline for the current stopgap provides a secondary pressure point, but transportation officials and states are signaling that action is needed well before then to avoid funding disruptions on October 1.