Ahead of the August recess, the House cleared its schedule and adjourned until August 31 after passing a series of high-profile measures, including the annual defense authorization bill, a partial ban on stock trading by members of Congress, a budget blueprint intended to set the stage for another reconciliation bill, and a stopgap continuing resolution (CR) aimed at preventing a federal government shutdown on October 1.

While most of these actions fall outside the transportation sector, the CR, H.R. 9770, extends government operations through December 4, 2026. The measure is notable for being one of the "cleanest" CRs in recent memory. At approximately 15 pages, it contains few policy riders, funding adjustments, or special provisions. Under the bill, federal discretionary programs would operate at a 65-day proration rate, or 17.8 percent of their FY 2026 enacted funding levels.

Democratic leadership opposed the measure due to concerns about potential transfers of Homeland Security funding, but it ultimately passed the House by a vote of 220-205.

Importantly for transportation stakeholders, the CR does not extend Highway Trust Fund spending authority, which is often addressed separately when Trust Fund programs are nearing expiration. It also does not continue the advance appropriations provided under the 2021 Infrastructure Investment and Jobs Act (IIJA), including Division J funding that has supplied $36.8 billion annually to the U.S. Department of Transportation. Without congressional action, those advance appropriations will lapse at the start of FY 2027.

On Sunday afternoon, the Senate Appropriations Committee released the text of its bipartisan stopgap funding measure. Unlike the House-passed bill, which was limited largely to matters within the Appropriations Committee's jurisdiction, the Senate version is more comprehensive. It contains roughly twice as many pages of appropriations-related provisions, extends funding through December 11, and includes an additional 25 pages of program extensions from committees outside the Appropriations Committee. Among those provisions is a 72-day extension of the Highway Trust Fund and federal surface transportation programs.

However, like the House bill, the Senate proposal does not extend the IIJA's advance appropriations.

Last week, transportation organizations urged Congress to maintain FY 2026 transportation funding levels, including advance appropriations, and to avoid disruptions that could delay projects, postpone grant awards, or force agencies to scale back operations.

If the Senate passes its version of the CR, the House could consider the measure when lawmakers return the week of August 31. Otherwise, the two chambers will need to negotiate a compromise that can secure passage in both the House and Senate. Any final agreement must be completed and passed during a limited number of legislative days in September to prevent a federal government shutdown.

USDOT Sends Surface Transportation Reauthorization Priorities to Senate

U.S. Transportation Secretary Sean Duffy recently sent a letter to key Senate committee leaders outlining the Department of Transportation's priorities for the next surface transportation reauthorization bill. The current authorization law, the Infrastructure Investment and Jobs Act (IIJA), is set to expire on September 30.

The letter highlights several major priorities, including transit safety and security, autonomous vehicle deployment, rail safety, infrastructure modernization, and restoring the Highway Trust Fund's long-term solvency by eliminating the Mass Transit Account. It also calls for consolidating federal grant programs, reducing support for bicycle infrastructure, expanding private-sector investment opportunities, and advancing some rail and highway initiatives.

Notably, USDOT indicated that if Congress adopts a short-term extension of the IIJA before a full reauthorization bill, it would still like some of these policy changes included. This would mark a departure from the traditional approach of using extensions simply to maintain existing programs.

The House Transportation and Infrastructure Committee has passed its version of a reauthorization bill, the BUILD America 250 Act, which is now awaiting consideration by the full House. Meanwhile, the Senate committees with jurisdiction over parts of the next reauthorization bill have not yet released their proposals. The letter is directed to the leadership of those committees. USDOT shared similar but less detailed priorities with the House Transportation & Infrastructure Committee earlier this year.

While the proposals are unlikely to be adopted in full, the letter provides insight into the Administration's transportation priorities and may help shape congressional discussions in the months ahead.

House & Senate Committees Advance WRDA Legislation

Key House and Senate committees have approved their respective versions of the Water Resources Development Act (WRDA) of 2026, advancing legislation that supports the nation’s ports, harbors, inland waterways, flood and storm risk management projects, and other water resources infrastructure needs.

While the House and Senate still must reconcile differences before final passage, both versions include policy changes aimed at expanding the use of alternative project delivery methods and increasing opportunities for non-federal partners to participate in dredging and other water resource activities. Supporters view those changes as a way to reduce costs and improve project delivery efficiency.

On July 14, the House Transportation and Infrastructure Committee (T&I) unanimously approved H.R. 9497, authorizing 133 new feasibility studies for locally proposed projects and 14 U.S. Army Corps of Engineers projects ready for construction authorization. The bill also includes measures designed to strengthen alternative delivery programs, enhance non-federal participation in project development, encourage multi-year project contracts, and establish specialized Corps offices focused on inland navigation, water supply, technical assistance, and alternative delivery.

A day later, the Senate Environment and Public Works Committee (EPW) unanimously advanced S. 4949. The Senate measure authorizes 61 feasibility studies and 15 new or modified construction projects. It also reauthorizes key Environmental Protection Agency drinking water and wastewater infrastructure programs, providing $16.5 billion for the Drinking Water State Revolving Fund and $14 billion for the Clean Water State Revolving Fund, both covering 2027 through 2030, in addition to $260 million for the Water Infrastructure Finance and Innovation Act.

Enactment in 2026 will mark the seventh consecutive time WRDA has been approved on its biennial schedule.