Trump administration is withholding over $7B in transit grants

Congress allocated $7.7 billion to the Capital Investment Grants program. The Federal Transit Administration has yet to sign a single agreement.

1 minute read

August 5, 2026, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


Elected officials pose after conclusion of celebration for full funding for Hudson Tunnel Project at construction site in New York on July 8, 2024.

New York City elected officials at a ceremony acknowledging federal funding for the Hudson Tunnel project. | lev radin / Shutterstock

Shifting gears from its strategy of terminating grants, the Trump administration is simply declining to award over $7 billion in transit funds allocated by Congress under the Capital Investment Grants program.

As Emily Badger and Alicia Parlapiano report in The New York Times, the Federal Transit Administration has not signed a single new agreement under the CIG program since Pres. Trump returned to office. 

The impacts on local transit agencies are severe: "Delays compound rising construction costs that outpace overall inflation. Without the certainty of federal funding, it’s harder for communities to pursue bonds and other financing for big projects."

According to the article, smaller communities would be most hurt by delays or unawarded grants. "They may not have dedicated taxes to fund transit or state programs to step in. Of the 46 projects in the pipeline, most aren’t trying to dig a tunnel under a major river — they’re seeking $50 million to $150 million for bus rapid transit."

Monday, July 27, 2026 in The New York Times

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