Congress Proposes More Than $90 Billion for Highway and Transit Programs in FY 2023

What happened: Congressional negotiators Dec. 20 released text of a final FY 2023 spending package that would provide highway programs with $3.42 billion in supplemental resources on top of meeting Infrastructure Investment and Jobs Act (IIJA) authorized funding levels. Congress is proposing $2.3 billion more for highway programs than in Fiscal Year (FY) 2022, with much of this increase targeted towards congressionally-directed spending projects, also known as earmarks.

The package would fund the federal government though Sept. 30, 2023, and if signed into law, marks the sixth straight year Congress has provided supplemental spending on top of authorized levels.

Other programs like the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program would see an increase of $25 million over FY 2022 levels. The Airport Improvement Program would receive an increase of $5 million, and transit capital grants would grow by $387 million.

Why it matters: Once enacted, the measure provides states with nine months of funding certainty. The additional supplemental investment shows continued support by Congress for transportation construction programs.

What’s next: Congress is expected to pass and President Biden is expected to sign the spending deal before government funding runs out Dec. 23.