S 2465 · 119th Congress

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Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026

federal appropriationstransportation fundingpublic housinghomeless assistanceaviation safety
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Last action 2025-07-24

Sponsored by Sen. Hyde-Smith, Cindy [R-MS] (R) — MS

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Would provide FY2026 appropriations for the Department of Transportation and the Department of Housing and Urban Development, plus related agencies, funding programs from aviation operations and highway construction to Section 8 rental vouchers and homeless assistance grants — representing well over $100 billion in total federal spending.

The bill would also impose hundreds of conditions on how those funds may be obligated and reprogrammed, amend statutes governing Indian and Native Hawaiian housing loans and transit land acquisition, and require 120-day advance notice before agencies can terminate most discretionary grant awards.

What this bill would do

What it would do

The bill would appropriate FY2026 funds for the Department of Transportation and the Department of Housing and Urban Development, plus several related agencies. For DOT, it would provide over $13.8 billion for FAA operations, a $62.7 billion obligation ceiling for federal-aid highways, $14.6 billion for transit formula grants, and approximately $2.4 billion in combined grants to Amtrak for the Northeast Corridor and National Network. It would also fund motor carrier safety, railroad, pipeline, maritime, and highway safety programs.

For HUD, the bill would provide over $33 billion for Section 8 tenant-based rental assistance vouchers, over $17 billion for project-based rental assistance contracts, $8.4 billion for public housing operations and capital, $4.5 billion for homeless assistance grants, and billions more for community development, affordable housing, and Native American housing. It would amend several federal statutes, impose detailed congressional notification and reporting requirements, and rescind certain prior-year unobligated balances.

Key provisions

  1. 1Would appropriate $13,818,183,000 for FAA operations, with minimum funding floors for aviation safety activities ($1,876,039,000) and air traffic organization ($10,378,148,000), and prohibit new aviation user fees.
  2. 2Would set a $62,657,105,821 obligation ceiling for federal-aid highway programs and appropriate $63,396,105,821 for liquidation of prior highway obligations from the Highway Trust Fund.
  3. 3Would provide $14,642,000,000 for transit formula grants and $1,950,000,000 for fixed-guideway capital investment grants, plus $150,000,000 for the Washington Metropolitan Area Transit Authority.
  4. 4Would appropriate over $33 billion for Section 8 tenant-based rental assistance vouchers and over $17 billion for project-based rental assistance contracts, the two largest HUD housing subsidy programs.
  5. 5Would fund $8,397,326,000 for public housing operations and capital improvements, with $65,000,000 set aside for competitive grants to reduce residential health hazards including lead paint.
  6. 6Would provide $4,530,000,000 for McKinney-Vento homeless assistance grants, including $4,023,000,000 for the continuum of care program and $100,000,000 for new permanent supportive housing construction.
  7. 7Would require DOT and HUD to give 120-day written notice before terminating any discretionary grant award, with a 90-day period for recipients to restructure or re-scope the award before cancellation takes effect.Sec. 426

Who would be affected

Airlines, airports, and aviation workers; state departments of transportation and highway contractors; public transit agencies and their riders; Amtrak and its passengers; public housing authorities and Section 8 voucher holders; homeless individuals and continuum-of-care service providers; Indian Tribes, tribal housing authorities, and Native Hawaiian families eligible for federally guaranteed home loans; maritime operators and shipyards; motor carriers and commercial truck operators; and state and local governments receiving formula and competitive grants.

Why it matters

If enacted, the bill would set the funding levels for virtually every major federal transportation and housing assistance program for FY2026, directly affecting millions of low-income renters, public housing residents, and homeless individuals, as well as commuters who rely on highways, transit, rail, and air travel. A new requirement for 120-day pre-termination notice before grant cancellations could significantly limit agencies' ability to unilaterally rescind awards made in prior years.

What would change

Changes to existing law

Amends 49 U.S.C. § 44502(e) (Sec. 119D)

Adds purchase-date limitations on air traffic systems and equipment that airports may transfer to the FAA, varying by equipment type.

Amends 49 U.S.C. § 5323 (Sec. 167)

Replaces 'corridor preservation' with 'real property interests' throughout subsection (q), broadening the scope of eligible FTA land acquisition authority.

Amends Housing and Community Development Act of 1992, § 184 (Sec. 246)

Expands the Section 184 Indian housing loan guarantee program to cover loans on fee simple land in addition to trust land, and adds refinancing as an eligible loan purpose.

Amends Housing and Community Development Act of 1992, § 184A (Sec. 246)

Expands Native Hawaiian housing loan guarantees to cover homeownership on fee simple lands in Hawaii, and adds refinancing as an eligible loan purpose.

Amends Housing and Community Development Act of 1992, §§ 184(b)(5)(A) and 184A(c)(5)(A) (Sec. 247)

Allows loan modifications under both Indian and Native Hawaiian housing guarantee programs to extend terms up to 40 years instead of the standard 30-year maximum.

Amends Housing and Community Development Act of 1974, § 105 (Sec. 248)

Authorizes Indian Tribes receiving CDBG grants to carry out microenterprise assistance activities directly, without going through an intermediary.

Agencies directed to act

Department of TransportationFederal Aviation AdministrationFederal Highway AdministrationFederal Motor Carrier Safety AdministrationNational Highway Traffic Safety AdministrationFederal Railroad AdministrationFederal Transit AdministrationGreat Lakes St. Lawrence Seaway Development CorporationMaritime AdministrationPipeline and Hazardous Materials Safety AdministrationDepartment of Transportation Office of Inspector GeneralDepartment of Housing and Urban DevelopmentAccess BoardFederal Maritime CommissionNational Transportation Safety BoardNeighborhood Reinvestment CorporationSurface Transportation BoardUnited States Interagency Council on HomelessnessNational Railroad Passenger Corporation Office of Inspector General

Effective dates

  • HUD tenant-based rental assistance advance appropriation becomes available2025-10-01
  • HUD project-based rental assistance advance appropriation becomes available2025-10-01
  • General FY2026 appropriations period ends2026-09-30
  • Agencies must submit operating plans to Appropriations CommitteesSec. 405Within 60 days of enactment
  • Advance written notice required before terminating discretionary grant awardsSec. 426Upon enactment

Funding and costs

  • $33,354,709,000FY2026

    HUD Section 8 tenant-based rental assistance vouchers

  • $17,404,000,000FY2026

    HUD project-based rental assistance contracts under the United States Housing Act of 1937

  • $14,642,000,000FY2026

    Federal Transit Administration transit formula grants from the Mass Transit Account

  • $13,818,183,000FY2026

    Federal Aviation Administration operations, including air traffic control and aviation safety

  • $8,397,326,000FY2026

    Public housing fund for operations, capital improvements, and emergency capital grants

  • $4,541,397,000FY2026

    HUD community development fund, including CDBG formula grants and economic development initiative

  • $4,530,000,000FY2026

    Homeless assistance grants under the McKinney-Vento Act, including continuum of care and emergency solutions grants

  • $4,000,000,000FY2026

    FAA facilities and equipment, derived from the Airport and Airway Trust Fund

  • $4,000,000,000FY2026

    Grants-in-aid for airport planning, development, and noise compatibility programs

  • $1,950,000,000FY2026

    FTA capital investment grants for fixed-guideway transit projects

  • $1,577,000,000FY2026

    Amtrak National Network grants for intercity passenger rail service

  • $1,354,000,000FY2026

    Native American housing programs, including block grants to Indian Tribes under NAHASDA

  • $1,250,000,000FY2026

    HOME Investment Partnerships program for affordable housing

  • $850,000,000FY2026

    Amtrak Northeast Corridor grants for capital and operating activities

How implementation would work

Most appropriations would take effect upon enactment and remain available through FY2026 (some funds available as early as October 1, 2025 as advance appropriations). DOT and HUD would notify grantees of formula allocations within 60 days of enactment. Agencies must submit operating plans to the Appropriations Committees within 60 days and provide quarterly financial and semiannual staffing reports. Competitive grants require notices of funding opportunity within program-specific windows. Fund reprogramming of more than $5 million or 10 percent requires 30-day advance congressional notice. Before terminating any discretionary award, agencies must give recipients 120 days' notice — including 90 days to restructure — with continued disbursements during that period.

Legislative status & sources

Latest action

Placed on Senate Legislative Calendar under General Orders. Calendar No. 125.

2025-07-24

Official CRS summary

Show the CRS summary

This bill provides FY2026 appropriations to the Department of Transportation (DOT), the Department of Housing and Urban Development (HUD), and several related agencies.

The bill provides appropriations to DOT for

  • the Office of the Secretary,
  • the Federal Aviation Administration,
  • the Federal Highway Administration,
  • the Federal Motor Carrier Safety Administration,
  • the National Highway Traffic Safety Administration,
  • the Federal Railroad Administration,
  • the Federal Transit Administration,
  • the Great Lakes St. Lawrence Seaway Development Corporation,
  • the Maritime Administration,
  • the Pipeline and Hazardous Materials Safety Administration, and
  • the Office of Inspector General.

The bill provides appropriations to HUD for

  • Management and Administration,
  • Public and Indian Housing,
  • Community Planning and Development,
  • Housing Programs,
  • the Federal Housing Administration,
  • the Government National Mortgage Association (Ginnie Mae),
  • Policy Development and Research,
  • Fair Housing and Equal Opportunity,
  • the Office of Lead Hazard Control and Healthy Homes, and
  • the Office of Inspector General.

The bill also provides appropriations to several related agencies, including

  • the Access Board,
  • the Federal Maritime Commission,
  • the National Railroad Passenger Corporation (Amtrak) Office of Inspector General,
  • the National Transportation Safety Board,
  • the Neighborhood Reinvestment Corporation,
  • the Surface Transportation Board, and
  • The U.S. Interagency Council on Homelessness.

Additionally, the bill sets forth requirements and restrictions for using funds provided by this and other appropriations acts.

From the Congressional Research Service.

Legislative subjects

Access Board; Alabama; Alaska; Alaska Natives and Hawaiians; Appropriations; Arizona; Assault and harassment offenses; Aviation and airports; Building construction; California; Child safety and welfare; Community life and organization; Computer security and identity theft; Computers and information technology; Congressional oversight; Department of Housing and Urban Development; Department of Transportation; Disaster relief and insurance; District of Columbia; Domestic violence and child abuse; Economic development; Economics and Public Finance; Emergency planning and evacuation; Employment and training programs; Energy storage, supplies, demand; Executive agency funding and structure; Family services; Federal Maritime Commission; Fires; First responders and emergency personnel; Georgia; Government National Mortgage Association (Ginnie Mae); Government buildings, facilities, and property; Government employee pay, benefits, personnel management; Government information and archives; Government lending and loan guarantees; Government trust funds; Great Lakes; HIV/AIDS; Hazardous wastes and toxic substances; Higher education; Homelessness and emergency shelter; Housing and community development funding; Housing discrimination; Housing finance and home ownership; Housing industry and standards; Hybrid, electric, and advanced technology vehicles; Indian social and development programs; Infectious and parasitic diseases; Infrastructure development; Interagency Council on Homelessness; Intergovernmental relations; Internet, web applications, social media; Kentucky; Lakes and rivers; Licensing and registrations; Life, casualty, property insurance; Low- and moderate-income housing; Maine; Marine and inland water transportation; Marine pollution; Maryland; Metals; Military education and training; Minority and disadvantaged businesses; Mississippi; Motor carriers; Motor vehicles; National Railroad Passenger Corporation (Amtrak); National Transportation Safety Board (NTSB); Navigation, waterways, harbors; Neighborhood Reinvestment Corporation; New Hampshire; New Mexico; New York State; North Carolina; Ohio; Olympic games; Pennsylvania; Pipelines; Professional sports; Public housing; Public transit; Railroads; Regional and metropolitan planning; Research administration and funding; Research and development; Roads and highways; Rural conditions and development; Securities; Sex offenses; Small business; South Carolina; State and local government operations; Surface Transportation Board; Tennessee; Texas; Transportation programs funding; Transportation safety and security; Vermont; Virginia; Water resources funding; West Virginia

Committee report

S. Rept. 119-47

Congressional Bill

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S 2465: Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 | Legislation Reporter