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DOTBudget PDF pp. 55–57

Department of Transportation

FY2026 enacted
$25.0B
FY2027 proposed
$26.6B
Change
+$1.6B
+6.2%

Overview

The Department of Transportation's FY2027 budget would actually rise overall to $26.6 billion, but that total masks deep cuts to specific programs. The biggest hit is the complete cancellation of $4.2 billion in EV charger funding, which would affect EV owners and rural communities along interstate highways. Other reductions include eliminating competitive RAISE infrastructure grants, cutting transit construction funding by a quarter for over 60 planned rail and bus projects in cities, and slashing air service subsidies by 60% for about 175 rural communities that depend on them. Together, these changes would fall hardest on rural travelers, transit riders, and cities planning new public transportation.

4 programs affected · $5.2B total proposed reduction

Program-level cuts

cancellationBudget PDF p. 56

EV Chargers

NEVI Formula Program and EV Charging Infrastructure (IIJA Rescission)

$4.2B
100.0% cut

EV owners; charging network companies; rural communities along interstate corridors

reductionBudget PDF p. 56

Transit CIG

Capital Investment Grants (New Starts)

$486M
25.0% cut

63+ transit projects in pipeline; cities planning light rail, bus rapid transit, subway expansions

reductionBudget PDF p. 56

Essential Air Service

Essential Air Service Discretionary Funding

$372M
60.0% cut

~175 rural communities dependent on subsidized air service

eliminationBudget PDF p. 56

RAISE Grants

Rebuilding American Infrastructure with Sustainability and Equity Grants

$145M
100.0% cut

Communities applying for competitive infrastructure grants; California HSR project