Overview
On September 30, the five-year surface transportation authorization bill, the Infrastructure, Investment, and Jobs Act (IIJA), expired. On September 2, Congress enacted a short-term extension of IIJA extending contract authority for Highway Trust Fund programs until December 11. However, Congress did not extend advanced appropriations, leaving a a $36.8 billion annual shortfall beginning on October 1, 2026.
What was included in the extension?
The extension continues baseline Highway Trust Fund contract authority, allowing the Federal Highway Administration and Federal Transit Administration to continue administering core highway and transit programs while Congress negotiates a long-term reauthorization bill. By extending these authorities, Congress avoided an immediate lapse in many of the major programs and funding mechanisms that support transportation planning and project delivery nationwide.
What was not included in the extension?
The short-term extension did not include the advanced appropriations established under IIJA, a novel funding mechanism that provided five years of guaranteed funding for dozens of transportation programs in Division J of the law. This ensured that the Division J programs, such as Safe Streets & Roads for All (SS4A) program and the Rural Surface Transportation Grant program, were guaranteed to have funding regardless of what Congress choose to do in an annual appropriations bill.
Overall funding levels were reduced by more than 15 percent due to the exclusion of these programs in the extension.
When will a new authorization bill get passed?
For decades, Congress has relied on the use of extensions to allow for additional time for negotiations of a surface transportation reauthorization bill.
Several factors could influence the timing of a new bill, including broader budget negotiations, competing legislative priorities in the lame-duck, and ongoing discussions regarding transportation funding levels. While lawmakers in both chambers have expressed interest in advancing a reauthorization package, significant work remains before Congress reaches agreement on a final measure.
Continued Advocacy
NADO continues to advocate for a surface transportation reauthorization bill that provides certainty, stability, and robust funding for transportation programs serving rural and small metropolitan communities. In the near term, NADO is urging Congress to restore the funding lost as a result of the lapse in advanced appropriations and ensure that transportation programs can continue operating at expected funding levels.
NADO also continues to advocate for dedicated federal funding for Regional Transportation Planning Organizations (RTPOs), recognizing the critical role RTPOs play in helping rural communities identify transportation needs, develop project priorities, navigate federal programs, and advance infrastructure investments.
NADO will continue to monitor congressional activity and provide updates as additional information becomes available.