Analysis of FY 2026 THUD Rail Funding and Provisions

by Sean Jeans-Gail | VP of Gov't Affairs + Policy

--

A transportation funding agreement released jointly by the U.S. House and Senate Appropriations Committees this earlier week passed the House last night as part of a three bill “minibus”. The bill, which was advanced by a bipartisan vote of 341 yeas to 88 nays, provides a unified funding framework for Fiscal Year 2026 transportation programs, including a strong funding commitment to Amtrak and passenger rail programs.

The agreement represents a compromise between the differing House and Senate approaches first advanced in Summer 2025, a clear sign that there is little appetite for another extended showdown after the prolonged 43-day government shutdown that took place late in October and November of 2025.

And while there are some disappointing elements—including reductions to funding for important transit programs—the bill ultimately delivers for Amtrak operations and the advanced appropriations included in the Infrastructure Investment and Jobs Act (IIJA).

Last night's passage by the House tees up Senate action next week, which would allow for final passage ahead of the January 30th funding deadline.

---

1. Total Passenger Rail Funding

When factoring in discretionary funding and advanced appropriations from the IIJA, the compromise agreement provides $15.9 billion for passenger and freight rail in FY 2026. This represents a $298 million decrease below FY 2025 enacted levels.

Critically, however, the agreement rejects a proposal included in the House Appropriations bill that would’ve raided funding for future passenger rail upgrades to pay for present-day Amtrak operations.

Millions
BIL - Authorized Rail Funds	FY25 Enacted	FY26 Authorized	FY26 Presidential Request	FY26 House Proposed	FY26 Senate Proposed	FY26 Bicameral Agreement
Amtrak - NEC	$1,140	$1,400	$850	$925	$850	$850
Amtrak - Nat'l Network	$1,290	$3,000	$1,577	$1,390	$1,577	$1,577
FRA Operations	$268	$279	$268	$265	$265	$265
Fed-State Partnership for IPR/SOGR	$75	$1,500	$0	$0	$75	$65
CRISI Grants	$100	$1,000	$500	$538	$152	$137
RR Crossing Elimination Grants	$0	$500	$0	$0	$0	$0
Restoration & Enhancement Grants	$0	$50	$0	$0	$0	$0
Total	$2,873	$7,729	$2,345	$3,118	$2,919	$2,894
BIL - Guaranteed Funds	FY25					FY26
CRISI Grants	$1,000					$1,000
Amtrak - NEC	$1,200					$1,200
Amtrak - Nat'l Network	$3,200					$3,200
RR Crossing Elimination Grants	$600					$600
Fed-State Partnership for SOGR	$7,200					$7,200
Total	$13,200					$13,200

2. Amtrak Funding and Policies

The bill appropriates $2.4 billion for Amtrak, including:

• $1.6 billion for the National Network (NN); and
• $850 million for the Northeast Corridor (NEC).

This level is effectively flat‑funding compared to last year. However, it rejects a House proposal which would’ve transferred $2.3 billion in advanced appropriations from the FY26 Federal-State Partnership for Intercity Passenger Rail (FSP) advanced appropriations to pay for Amtrak operations.

The bill also includes several Amtrak policy provisions and funding directives:

• Directs Amtrak to provide a briefing to the House and Senate Committees on Appropriations within 30 days of enactment of the bill on the rollout of NextGen Acelas, the status of the new Airo trainsets, challenges to Amtrak's overall fleet modernization efforts, and actions Amtrak has taken in response to the recent Amtrak Office of the Inspector General report;
• Supports a feasibility study for temporarily providing expanded Amtrak long-distance service(s) during the 2034 Salt Lake City Olympics;
• Continues oversight of Amtrak’s ticket agent staffing levels;
• Directs Amtrak to report to the House and Senate within 60 days of passage of the bill on the status of funding and work associated with the Chicago Union Station modernization project; and
• Includes a $5 million set-aside for the Atlanta hub initiative for a new intercity passenger rail hub in downtown Atlanta, as included in Amtrak's fiscal year 2026 legislative and grant request.

3. Key Rail Grant Programs

Beyond Amtrak, the bill funds rail programs that are essential to expanding and improving passenger rail nationwide.

a. Federal‑State Partnership for Intercity Passenger Rail (FSP): the FY 2026 bill includes $65 million for FSP, which is $10 million below FY 2025—but $65 million above what was included in the House proposal.

As mentioned previously, the bill also preserves billions in advanced appropriations for this program included in the IIJA, rejecting the House’s proposed cuts which were widely criticized for jeopardizing new and expanding intercity rail routes.

a. Consolidated Rail Infrastructure and Safety Improvements (CRISI): the legislation provides $137 million for CRISI, a $37 million increase from FY 2025. Of this amount, $87 million is being used for Congressionally Directed Spending projects (a rebranding of earmarks).

c. Rescissions and Cuts: the bill reallocates unused administrative set-asides included for FRA oversight of rail programs as a pay-for for certain FY26 rail grant programs. The bill also rescinds $928.6 million in high‑speed and intercity passenger rail funds previously appropriated in 2010 under P.L. 111‑117.

4. Transit Funding

The bill provides $1.7 billiion for the Federal Transit Administration’s (FTA) Capital Investment Grant (CIG) program, an important program for expanding and upgrading urban rail systems. This represents a $500 million reduction below enacted FY25 levels, but is well above the $54 million proposed in the House bill.

The agreement also includes greater oversight for how the USDOT spends CIG funds to address a serious backlog of money flowing out of the USDOT to transit agencies.

Finally, the bill provides $195 million to help host cities throughout the country provide transit service in support of the 2026 FIFA World Cup and 2028 Olympic and Paralympic Games.

5. Policy Directives Affecting Passenger Rail

The bill includes several provisions directing how rail funds can be used and how quickly the USDOT must act to disburse funds.

Grants review backlog: the bill requires the Federal Transit Administration (FTA) to brief the House and Senate Committees on Appropriations within 120 days of enactment of the act:

• Detailing the scope of the grants review backlog, how any staffing shortfalls at the modal and departmental level may contribute to this backlog, and the Department's plan to improve grant processing timelines and capacity;
• Provide the status of all awarded but not obligated competitive grant and community project funding/congressionally directed spending projects; and
• Provide a list of all delayed awards by program, fiscal year, and grantee, and include the name of the project, the state of the project location, the original amount of the award when announced, and the amount obligated to date.

Federal Share Flexibility for Major Projects: the legislation prohibits USDOT from blocking projects seeking a >40% federal share under CIG—critical for large multimodal rail hubs.