Senate Stopgap Bill Funds Highways Through Dec. 11, Leaves Transit Money in Limbo
The Senate voted 90-6 early Aug. 8 to pass a stopgap funding bill extending federal highway and transit programs through Dec. 11, but the measure leaves out some Infrastructure Investment and Jobs Act advance appropriations for transit and passenger rail, Engineering News-Record reports.
Market Impact
The continuing resolution keeps most agency operations running at fiscal 2026 rates and allows federal transportation, Army Corps of Engineers, Bureau of Reclamation and military construction accounts to continue existing work. Agencies can keep funding projects already underway but cannot start new work lacking current-year appropriations. A separate Surface Transportation Extension Act, included as Division C, extends highway and transit authorities through the resolution’s funding window, with Highway Trust Fund and Mass Transit Account programs getting prorated fiscal 2027 authorization based on fiscal 2026 levels.
The catch is on the transit and rail side. Because those programs largely depend on IIJA advance appropriations rather than Highway Trust Fund contract authority, letting those appropriations lapse Oct. 1 creates a funding gap the highway extension doesn’t fix. The American Public Transportation Association, joined by 85 coalition partners including the Associated General Contractors of America, American Road & Transportation Builders Association and American Society of Civil Engineers, warned in a July 27 letter that skipping the advance appropriations would cut public transit investment by 20% and passenger-rail investment by 83%, leaving passenger rail with no guaranteed funding during the extension. Senate Appropriations Committee Vice Chair Patty Murray (D-Wash.) said Republicans rejected efforts to extend the advance appropriations, which “will expire on October 1.” AGC called the stopgap “no substitute for a multi-year bill,” noting it preserves core highway and transit programs but doesn’t maintain IIJA’s full investment levels. The Senate bill also differs from the House version, meaning lawmakers still need to reconcile the two before sending anything to President Trump.
What It Means for Subcontractors
- Highway, bridge and Army Corps civil works subs bidding fiscal 2026-funded work can expect continued funding through Dec. 11 under Division A, so existing contract pipelines in those areas remain stable for now.
- Transit and passenger-rail subcontractors, including electrical, mechanical and systems integration trades tied to projects like the Chicago Transit Authority’s Red Line extension or the Gateway Program, should track the Oct. 1 expiration of IIJA advance appropriations closely but hold off re-pricing bids until Congress acts.
- Firms with pending subcontract packages on transit capital projects should confirm with GCs or transit agencies whether fiscal 2027 funding commitments are secured, since APTA’s coalition projects a possible 20% cut to transit investment and an 83% cut to passenger-rail investment if advance appropriations lapse.
- Contractors on Department of Energy or National Nuclear Security Administration work in Nevada and New Mexico, including the Waste Isolation Pilot Plant’s Hoisting Capability Project, can continue procurement and mobilization under the bill’s specific carve-outs.
- Military construction subs working on unaccompanied housing at the Medical Education and Training Campus at Joint Base San Antonio should note the bill’s exception allowing use of current or prior-year MILCON funds despite the general new-start restriction.
- Watch for House-Senate reconciliation before Sept. 30, since the two chambers passed different versions and final terms, including any transit funding fix, could still change before reaching the president’s desk.
