US: Federal Spending Bill Secures Billions for Public Transit in FY25

The United States Congress has passed a full-year spending bill, H.R. 1968, titled the “Full-Year Continuing Appropriations and Extensions Act, 2025.”

The bill, which had previously been approved in the House by a vote of 217-213, was passed by the Senate and subsequently signed into law by President Donald Trump. The legislation ensures continued government operations through the end of the fiscal year on September 30, 2025, preventing a shutdown.

The bill extends funding for government programmes, including those related to transportation, housing, and urban development, at levels similar to the previous fiscal year. It also maintains investment in public transit and passenger rail through a combination of continuing resolution (CR) funding and advance appropriations from the Infrastructure Investment and Jobs Act (IIJA).

Public Transit Funding

Under the bill, public transit programmes will receive 20.9 billion USD in the 2025 fiscal year, an increase of 82 million USD or 0.4 percent from the 2024 level. This funding represents 95 percent of the amount authorised in the IIJA.

Capital Investment Grants (CIG), which support major transit expansion projects, remain funded at 3.8 billion USD, unchanged from the previous year. The demand for CIG funding remains high, with communities across 25 states requesting more than 38.7 billion USD to support 58 ongoing and planned projects.

Passenger Rail Investment

The bill allocates 16.2 billion USD to passenger and freight rail, a decrease of 99 million USD or 0.6 percent from the 2024 enacted level. This amount constitutes 78 percent of the funding authorised in the IIJA.

This funding includes:

• 7.3 billion USD for Federal-State Partnership for Intercity Passenger Rail grants
• 6.8 billion USD for Amtrak grants (4.5 billion USD for National Network grants and 2.3 billion USD for the Northeast Corridor)
• 1.1 billion USD for Consolidated Rail Infrastructure and Safety Improvement (CRISI) grants
• 600 million USD for Railroad Crossing Elimination grants.

One of the key changes in the bill is the elimination of 99 million USD in earmarked funding for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant programme that had been included in the previous year’s appropriations.

However, provisions allowing CRISI grants to support commuter rail projects related to positive train control systems have been retained.

The passage of H.R. 1968 ensures the continuity of funding for key transportation and infrastructure projects, while also reflecting adjustments in specific allocations. Overall, the legislation maintains core funding levels for public transit and rail services, with minor variations from the prior fiscal year.