Short-Term Funding Patch as Broader FY 2022 Spending Deal Inches Forward

What happened: U.S. House and Senate appropriations committee leaders Feb. 9 announced they have reached an agreement on topline FY 2022 spending levels for defense and non-defense programs. Specific details, including the level of investment for individual programs, still need to be resolved. Facing a Feb. 18 deadline, the House passed another temporary spending bill extending FY 2021 funding levels through March 11.

Why it’s important: While the Infrastructure Investment and Jobs Act (IIJA) authorizes federal highway and public transportation investment through FY 2026, the annual appropriations process allows those resources to be released from the Highway Trust Fund. Until the FY 2022 spending bills are finalized, highway and public transit programs will operate at the lower FY 2021 levels. In a Jan. 24 letter, ARTBA and its allies urged Congress to complete action and free up the delayed IIJA funding.

What’s next: The Senate will consider the three-week funding extension in the coming days, likely passing it before Feb. 18 and sending it to President Joe Biden for signature. House and Senate leaders will continue their negotiations until they complete the full FY 2022 spending package.