Regulations & Safety
Congress Approves $102.9B FY 2026 Transport and Housing Bill
The FY 2026 THUD Appropriations Act allocates $102.9B focusing on FAA modernization and housing assistance, rescinding CA High-Speed Rail funds.
This article is based on an official press release from the Senate Appropriations Committee and legislative summaries of the FY 2026 THUD Appropriations Act.
Following a brief partial government shutdown that spanned from January 31 to February 3, 2026, Congress has approved and President Trump has signed the Fiscal Year 2026 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act. The legislation, which provides $102.9 billion in total discretionary funding, marks a significant pivot toward stabilizing core Commercial-Aircraft infrastructure while enacting targeted cuts to specific rail initiatives.
According to the official summary released by the Senate Appropriations Committee, the bill allocates $77.3 billion to the Department of Housing and Urban Development (HUD) and $25.1 billion in discretionary budget authority to the Department of Transportation (DOT). Lawmakers framed the legislation as a “back-to-basics” measure designed to address immediate Safety concerns in the national airspace and protect essential housing vouchers.
Senator Susan Collins (R-ME), Chair of the Senate Appropriations Committee, emphasized the dual focus of the bill in a statement following its passage:
“It is critical that we make significant investments to modernize our air traffic control systems… We must also ensure that a greater supply of safe, affordable housing is available to communities throughout the country.”
, Senator Susan Collins (R-ME)
The Department of Transportation’s portion of the budget heavily prioritizes the Federal Aviation Administration (FAA), which receives $22.2 billion. This funding level reflects a consensus among lawmakers that the national airspace system requires urgent modernization following recent operational strains.
A central component of the FAA funding is a $4 billion allocation specifically for “Facilities and Equipment.” This investment is aimed at upgrading aging air traffic control (ATC) systems that have been prone to outages. Furthermore, to address chronic staffing shortages that have plagued the industry, the bill funds the hiring and training of 2,500 new air traffic controllers.
The National Air Traffic Controllers Association (NATCA) reportedly endorsed the measure, describing the staffing surge as a “critical lifeline” for maintaining safety standards. Additionally, the bill provides $4 billion in Grants-in-Aid for Airports to support physical infrastructure improvements. In a move described by Republican leadership as an effort to protect taxpayers from waste, the bill permanently rescinds approximately $929 million in unobligated federal funds originally designated for the California High-Speed Rail Authority. This rescission aligns with the administration’s focus on “America First” infrastructure projects, such as the $350 million allocated for bridge repair and $200 million for commercial truck parking projects under the Federal Highway Administration.
The Department of Housing and Urban Development (HUD) received a $7 billion increase over FY 2025 levels, bringing its total to $77.3 billion. The primary goal of this funding is to maintain existing rental assistance programs and prevent a wave of evictions.
The legislation directs significant resources toward Section 8 rental assistance:
While these measures were welcomed by housing advocates, the bill maintains “flat funding” for other key programs. The Community Development Block Grants (CDBG) remain at $3.3 billion, and HOME Investment Partnerships are held at $1.25 billion. Industry groups, including the National Low Income Housing Coalition (NLIHC), have noted that without inflation adjustments, the purchasing power of these programs effectively decreases, potentially slowing the development of new affordable housing supply.
The passage of the FY 2026 THUD Appropriations Act signals a clear legislative priority: stabilization over expansion. By decoupling this bill from the contentious Department of Homeland Security debates that triggered the shutdown, Congress has acknowledged that the U.S. aviation system is too fragile to be used as a bargaining chip.
For the Airlines industry, the funding for 2,500 new controllers is a victory, but it is a long-term fix; training these controllers will take years. In the immediate term, the $4 billion for equipment modernization is the more critical figure, as it addresses the technical failures that have caused ground stops and delays. Conversely, the rescission of California High-Speed Rail funds suggests that federal support for large-scale, state-specific rail projects will face high scrutiny under the current administration, with preference given to freight efficiency (truck parking) and bridge safety.
When was the bill signed into law? Does the bill cut housing benefits? What is the impact on Amtrak? Sources: Senate Appropriations Committee, Congress.gov
Congress Passes $102.9 Billion “Back-to-Basics” Transport and Housing Bill, Ending Partial Shutdown
Aviation Safety and Infrastructure Overhaul
Modernizing Air Traffic Control
High-Speed Rail Funding Rescinded
Housing Stability and Community Development
Protecting Rental Assistance
AirPro News Analysis
Frequently Asked Questions
The bill was signed by President Trump on February 3, 2026, effectively ending the partial government shutdown.
The bill increases funding for rental assistance vouchers to keep up with costs but flat-funds development grants like CDBG and HOME, which advocates argue is an effective cut due to inflation.
Amtrak receives $2.4 billion in total, split between the National Network ($1.6 billion) and the Northeast Corridor ($850 million).
Photo Credit: Montage