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

Bill Number: S. 2465
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Economics and Public Finance
Status: Introduced
Latest Action: 2025-07-24: Placed on Senate Legislative Calendar under General Orders. Calendar No. 125.
Last Updated: 2026-05-01T11:03:33Z

AI-Generated Summary

Summary of S. 2465: Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026

Purpose

This legislation appropriates funds for the Department of Transportation (DOT), the Department of Housing and Urban Development (HUD), and related agencies for fiscal year 2026 (ending September 30, 2026). It supports transportation infrastructure, housing assistance, community development, and safety programs, while including administrative provisions, rescissions, and policy directives to ensure efficient use of funds.

Key Provisions

The bill is divided into four titles, allocating approximately $109 billion in discretionary funding (including transfers and rescissions). Major allocations include:

Title I: Department of Transportation

Office of the Secretary ($185.965 million): Funds salaries, policy offices, research, and national infrastructure investments ($250 million for local/regional projects, prioritizing disadvantaged communities and rural/urban balance).
Federal Aviation Administration (FAA, $18.108 billion): Covers operations ($13.818 billion, mostly from the Airport and Airway Trust Fund), facilities/equipment ($4 billion), research ($290 million), and airport grants ($4 billion plus $319 million supplemental for specific projects).
Federal Highway Administration ($63.396 billion): Limits obligations for federal-aid highways ($62.657 billion from Highway Trust Fund) and provides $1.136 billion for infrastructure programs, including congressionally directed spending ($581 million) and bridge programs ($375 million for rural/low-density states).
Federal Motor Carrier Safety Administration ($926.6 million): For operations, grants, and safety programs.
National Highway Traffic Safety Administration ($1.269 billion): For operations/research and safety grants.
Federal Railroad Administration ($2.961 billion): Includes safety ($264 million), research ($43 million), intercity rail grants ($75 million), and Amtrak support ($2.427 billion for Northeast Corridor and national network).
Federal Transit Administration ($16.592 billion): For formula grants ($14.642 billion from Highway Trust Fund), infrastructure ($140.857 million supplemental), and capital investments ($1.95 billion).
Other Agencies: Funding for Great Lakes Seaway ($40.624 million), Maritime Administration ($873.282 million), Pipeline and Hazardous Materials Safety ($369.983 million), and Office of Inspector General ($116.452 million).
Administrative Provisions: Include restrictions on bonuses, transfers, and reporting requirements (e.g., quarterly briefings on air traffic modernization).

Title II: Department of Housing and Urban Development

Management and Administration ($1.876 billion): For executive offices, administrative support, program offices, and IT modernization ($365 million).
Public and Indian Housing ($44.311 billion): Includes tenant-based rental assistance ($33.355 billion, with $4 billion available in FY 2027), public housing operations/capital ($8.397 billion), Choice Neighborhoods ($40 million), self-sufficiency programs ($211.4 million), and Native American programs ($1.354 billion).
Community Planning and Development ($6.908 billion): For Housing Opportunities for Persons with AIDS ($529 million), Community Development Block Grants ($3.1 billion), HOME program ($1.25 billion), and homeless assistance ($4.53 billion).
Housing Programs ($18.749 billion): For project-based rental assistance ($17.404 billion), elderly housing ($972 million), disability housing ($265 million), and counseling ($57.5 million).
Federal Housing Administration and Ginnie Mae ($550.435 billion in commitments): For mortgage insurance and guarantees.
Other Offices: Research ($131 million), Fair Housing ($86.355 million), Lead Hazard Reduction ($295.6 million), and Inspector General ($146 million).
Administrative Provisions: Authorize transfers, rescissions, and waivers (e.g., for asset management exemptions for small agencies).

Title III: Related Agencies

Access Board ($9.955 million): For accessibility standards.
Federal Maritime Commission ($40 million): For regulatory operations.
National Railroad Passenger Corporation Office of Inspector General ($29.24 million): For oversight of Amtrak.
National Transportation Safety Board ($145 million): For investigations.
Neighborhood Reinvestment Corporation ($158 million): For community reinvestment activities.
Surface Transportation Board ($40.799 million): For rail regulation.
United States Interagency Council on Homelessness ($2 million): For coordination on homelessness.

Title IV: General Provisions

Restrictions on fund use (e.g., no first-class travel, eminent domain limits, Inspector General access).
Reprogramming and reporting requirements (e.g., 30-day notice for changes over $5 million).
Buy American Act compliance and whistleblower protections.

Significant Changes to Existing Law

Rescissions and Transfers: Permanently rescinds unobligated balances from prior acts (e.g., $25 million from FAA inspections, $20 million from DOT salaries) and repurposes funds (e.g., for bridge programs, youth homelessness).
Amendments: Modifies loan terms under the Housing and Community Development Act of 1992 (e.g., extends Section 184/184A loan maturities to 40 years for modifications). Adds authority for Indian Tribes to carry out certain community development activities directly.
New Directives: Establishes competitive bridge programs for rural states; prioritizes low-emission ferries and safety in transit grants; allows HUD to forgive/restructure certain multifamily debts (up to $3.328 million appropriated).
Waivers and Flexibilities: Permits HUD to waive waiting list/portability rules for specific vouchers; exempts small public housing agencies from asset management rules; authorizes phased transfers of project-based assistance between properties.

Potential Impacts

Government Agencies: Provides stable funding for core operations but imposes oversight (e.g., quarterly staffing reports, IT modernization plans), potentially straining small agencies while enabling efficiencies through transfers/waivers.
Citizens: Expands affordable housing access (e.g., $33+ billion in vouchers for low-income families, veterans, and homeless individuals) and transportation safety/infrastructure (e.g., $4 billion for airports, $63 billion for highways), benefiting rural, Tribal, and disadvantaged communities. May reduce evictions via legal aid grants and improve public transit safety.
International Relations: Minimal direct impact, but supports U.S.-flag merchant fleet ($390 million) for national security and global trade; FAA funding aids international aviation standards.

Main Stakeholders Affected

Federal Agencies: DOT (e.g., FAA, highways), HUD (e.g., public housing, fair housing), and related entities (e.g., Amtrak, NTSB).
State/Local/Tribal Governments: Receive formula grants for highways ($62+ billion), transit ($14+ billion), community development ($3.1 billion), and housing blocks ($1.354 billion for Tribes).
Citizens and Communities: Low-income renters (vouchers/assistance for 2+ million units), seniors/disabled individuals (elderly/disability housing), homeless populations (4.53 billion for shelters/services), and transportation users (e.g., air/rail safety, rural bridges).
Nonprofits and Private Entities: Eligible for competitive grants (e.g., self-sufficiency, lead abatement) and loan guarantees (e.g., $400 billion for mortgages).
Industry: Airlines, railroads, shipbuilders, and housing developers benefit from infrastructure and loan programs.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens Inspector General independence and whistleblower protections; enforces Buy American Act compliance; limits eminent domain to public uses, potentially challenging local development projects. Amendments to loan programs expand access but require certifications for eligibility.
Constitutional: Aligns with spending power under Article I; promotes equal protection via fair housing funding ($86 million) and nondiscrimination waivers. No direct First Amendment issues, but restricts lobbying with appropriated funds.
Political: Emphasizes equity (e.g., 5% of infrastructure grants for disadvantaged areas) and fiscal restraint (rescissions of $100+ million); includes congressionally directed spending ($1+ billion for specific projects), reflecting bipartisan priorities. Requires extensive congressional notifications (e.g., for terminations, transfers), enhancing oversight but potentially slowing agency actions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Hyde-Smith, Cindy [R-MS]

Recent Actions

2025-07-24: Placed on Senate Legislative Calendar under General Orders. Calendar No. 125.
2025-07-24: Committee on Appropriations. Original measure reported to Senate by Senator Hyde-Smith. With written report No. 119-47.
2025-07-24: Committee on Appropriations. Original measure reported to Senate by Senator Hyde-Smith. With written report No. 119-47.
2025-07-24: Introduced in Senate
2025-06-11: Subcommittee on Transportation, Housing and Urban Development, and Related Agencies . Hearings held on the subject prior to the subcommittee ordering to be reported an original measure. With printed Hearing: S.Hrg. 119-72.
2025-05-15: Subcommittee on Transportation, Housing and Urban Development, and Related Agencies . Hearings held on the subject prior to the subcommittee ordering to be reported an original measure. With printed Hearing: S.Hrg. 119-72.

Bill Versions

Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2026 — issued 2025-07-24 — PDF (276 pages)