The House Transportation and Infrastructure Committee has approved the BUILD America 250 Act, a bipartisan five-year surface transportation reauthorization bill that would guide federal highway, transit, safety, freight, and rail programs from FY 2027 through FY 2031. This signals that Congress has begun the next major debate over the future of federal transportation investment.
The bill is intended to replace the current surface transportation law before it expires on September 30, 2026. However, because the Senate still needs to advance its own priorities and Congress will need to resolve funding, it is possible the legislation may get kicked into next year.
For transit agencies and the communities that rely on public transportation, the bill is an important early marker in the reauthorization process. While it is not the final word, the House proposal highlights several themes that matter for the future of transit:
- Bus modernization
- Rural mobility
- Local decision-making
- Investment in the systems that help riders access reliable service
Highlights of the draft bill most relevant to transit agencies include the following.
Section 5307 Urbanized Area Formula Grants increase
The BUILD America 250 Act would increase the core Section 5307 Urbanized Area Formula Grants program, which is one of the most important and flexible federal transit funding streams for urban transit agencies.
Under IIJA, Section 5307 was authorized at approximately $33.54 billion over five years, rising to $7.026 billion in FY 2026. Under BUILD America 250, Section 5307 would increase to approximately $39.99 billion over five years, beginning at $7.745 billion in FY 2027 and rising to $8.255 billion in FY 2031.
That represents an increase of roughly $6.45 billion over five years, or about 19.2 percent above the IIJA five-year authorization. On a year-over-year basis, the program would increase by approximately $720 million from FY 2026 to FY 2027, or roughly 10.2 percent.
Bus and Bus Facility funding increases significantly
One of the most important transit provisions in the bill is the proposed increase in federal support for The Bus/Bus Facility Program. The House proposal would authorize approximately $10 billion over five years for this program, rising from $1.695 billion in FY 2027 to nearly $2.3 billion in FY 2031.
It should be noted that BUILD eliminates the Lo-No program and instead adds those eligibilities to Bus/Bus Facilities.
Rural and small community mobility receives new attention
The bill also includes several provisions that could matter for rural and small-community transit providers. The Section 5339 bus program would include a new rural formula component, and the bill would make changes to the rural formula grants program, including provisions related to intercity bus facilities serving rural areas.
A new local and rural competitive grant program
Another major element of the House bill is the creation of a new Surface Transportation Accelerator Grant program. The program would be funded at $2.4 billion per year from FY 2027 through FY 2031.
The program would dedicate 50 percent of funding to local and regional grants, 25 percent to rural grants, and 25 percent to urban grants. The rural component would support projects in areas with populations of 50,000 or less, and the local/regional component would support projects with significant local or regional impact.
Although this program is not limited to transit, it could become an important opportunity for communities pursuing multimodal projects, rural mobility improvements, regional access, and technology-enabled transportation solutions. For local governments, counties, rural communities, and regional partners, this could create another pathway to invest in transportation systems that connect people to opportunity.
Bottom line
The BUILD America 250 Act is an important first step in the next surface transportation reauthorization debate. For transit, the bill’s increased bus funding, continued competitive grant structure, rural mobility provisions, and new local/rural grant program all point toward meaningful opportunities.
As the bill moves forward, transit stakeholders should continue making the case for practical investments that improve service, support riders, and help communities modernize for the future.