Biden FY25 Budget Seeks Heavy Spending For DOT, Army Corps

WASHINGTON—Thanks to the funding levels that are part of the $1.2 trillion IIJA, President Joe Biden’s budget proposal for fiscal year 2025 is sticking with highway spending transit obligation limits that are in the Bipartisan Infrastructure Law.  Heavy infrastructure programs remain high on his list if you look at the funding requests for two key construction agencies, the U.S. Dept. of Transportation and U.S. Army Corps of Engineers.

For USDOT, the request adheres to the Infrastructure Investment and Jobs Act (IIJA) levels for the core highway and transit formula categories, including $62.1 billion for the highway obligation limit and $14.3 billion for transit formula funding. Both represent increases over amounts contained in the newly enacted 2024 appropriations measure–about 3% for highways and 2% for transit.

The Federal Transit Administration also would get $2.4 billion for the Capital Investment Grants program, which funds new rail and bus rapid transit starts. That sum is about the same as the enacted 2024 level and is supplemented by $1.6 billion from the IIJA.

FTA recommends dividing the roughly $4 billion for the grants among 14 large projects. The largest award is $700 million for the proposed Hudson Tunnel Project, the rail megaproject to link New York and New Jersey. Paul Skoutelas, American Public Transportation Association president and CEO, in a statement praised Biden’s budget for continuing the support for transit and passenger rail provided by the IIJA.

New $8-billion FAA Facilities Program: At a DOT budget briefing, Deputy Secretary Polly Trottenberg highlighted a proposed new five-year, $8-billion program to upgrade Federal Aviation Administration towers, other facilities and radar systems. The 2025 share of the envisioned program is $1 billion.

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