Stakeholder Pressure Increases as IIJA Funding Expiration Draws Nearer

As the Infrastructure Investment and Jobs Act (IIJA), enacted as Public Law 117-58, approaches its expiration on September 30, 2026, there has been a recent groundswell of public support advocating for continued advanced appropriations.

In the last month, more than 100 transportation, infrastructure, labor and business stakeholders have called on congressional leadership to ensure this funding is maintained, warning that without additional appropriations included in any short-term extension, programs across the U.S. Department of Transportation stand to face a $36.8 billion annual shortfall beginning on October 1, 2026.

On August 8, 2026, the U.S. Senate overwhelmingly voted 90-6 to attach a short-term extension of surface transportation authorities to a continuing resolution that extends surface transportation authorizations and funding for the government through December 11, 2026. This bill notably does not extend the advanced appropriations included in Division J of the IIJA, which provided $36.8 billion per year over five years. The exclusion of this funding comes despite stakeholder groups advising that losing this guaranteed funding will delay planning, engineering, construction and staffing efforts for projects already in development.

The size of the coalition pushing for the continuation of Division J reflects how deeply these appropriations are embedded in long-term infrastructure planning. Without advanced appropriations grant programs critical to states and cities, such as the Mega Grant, Safe Streets and Roads for All (SS4A) Grant, Capital Investment Grants (CIG), Bridge Formula Program, Consolidated Rail Infrastructure and Safety Improvement (CRISI) Grant, Federal-State Partnership (FSP) for Intercity Passenger Rail Grant and the Port Infrastructure Development Program (PIDP) would face anywhere from a 50 percent to 100 percent reduction in funding from the levels provided under IIJA. Transportation and infrastructure stakeholders who have relied on programs that were robustly funded in the IIJA now face significant disruption from the impending funding cliff.

With the Senate-passed surface extension now in the hands of the U.S. House of Representatives and midterms quickly approaching, it is unlikely that a short-term extension of surface reauthorization will include advance appropriations. However, even with one or more short-term extensions, the U.S. Congress will still need to draft a full surface transportation bill to continue vital transportation programs. Based upon the volume of advocacy in the past month, discussions surrounding how to handle Division J's expiration – and what to replace it with – are likely to play a prominent role in negotiations over the bill.

For more information or questions, please contact the authors.