Transportation Funding Boosted in FY 2018 Funding Bill

The FY 2018 federal government funding bill includes AGC-backed increases in investment for highway, transit and aviation construction. The bill largely provides funding at FAST Act-authorized levels from the Highway Trust Fund. In addition, the bill appropriates $4.4 billion from the general fund for programs that already receive trust fund dollars.
The agreement includes funding as follows:

  • Fully funds FAST Act-authorized funding for the Federal-aid highway program, an increase of $900 million over FY 2017.

  • An additional $2.565 billion for federal-aid highway funding (from the general fund). The biggest portion of this amount—$1.98 billion—will be distributed to states only for highway and bridge projects under the existing formula; $225 million goes to a new bridge program for rural states (almost half of the states qualify); $15.8 million is for Puerto Rico Highways; $4.2 million goes to other territories; and $300 million for Federal and tribal lands.

  • $1.5 billion for TIGER Grant Program, which was funded at $500 million in FY 2017.

  • Fully funds FAST Act-authorized funding of $9.733 billion for mass transit formula grants, signifying no increase from the FY 2017 level.

  • An additional $834 million from the general fund for transit formula grants.

  • Provides $2.645 billion in funding for the transit New Start Capital Grant program, which funds ongoing transit projects with full funding grant agreements. An additional $232 million is provided for full funding grant agreements for new transit projects.

  • $4.35 billion for the Airport Improvement Program, an increase of $1 billion from FY 2017.

  • $25 million in additional funds for the Railroad Rehabilitation & Improvement Financing (RRIF) program for credit subsidies.

The bill does not include an increase in the Passenger Facility Charge (PFC) from the current cap of $4.50. The PFC, levied on airline tickets, is used for airport capital construction projects. The Senate appropriations bill had proposed an increase of $4.00 in the cap.
For more information, contact Brian Deery at [email protected].

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