Biden Calls For Full Funding of Infrastructure Law in FY 2024 Budget

What happened: President Joe Biden March 9 released an overview of his FY 2024 budget. More details are expected next week, but his plan would:

• Fully-fund core federal highway and public transportation investments at $69.5 billion and $21.3 billion, respectively, including previously enacted resources from the Infrastructure Investment and Jobs Act (IIJA). This represents a $1.3 billion spending increase for highways and a $600 million boost for mass transit over FY 2023.
• Add $1.2 billion in additional resources beyond what was approved in the IIJA for the National Infrastructure Project Assistance program. Also known as the Mega grant program, this initiative supports multi-modal projects of regional and national significance.
• Allow $4.5 billion in transit capital projects ($2.9 billion in FY 2024 appropriations and $1.6 billion from resources in the infrastructure law) to move forward. Here’s a list of those projects.
• Change existing policy to allow transit agencies and state departments of transportation to use federal transit and highway formula funds for operational needs at large transit systems. This modification would require approval by the Senate and House.

What’s next: This marks the beginning of the annual federal spending negotiations between the administration and Congress. Administration officials will come to Capitol Hill in coming weeks to defend the spending proposal. As the FY 2024 appropriations process moves forward, ARTBA will work to ensure all promises made in the IIJA are kept in a final agreement.