IIJA authorities expire September 30 – NACo urges Congress to uphold full funding levels in highway program extension

Key Takeaways

With current surface transportation authorities set to expire on September 30, 2026, NACo is urging Congress to maintain full funding levels in any extension – and is calling on county leaders to reach out to their members of Congress now to make the case. In a pair of letters to U.S. House and Senate leadership, NACo has urged Congress to ensure that the nation’s surface transportation programs are adequately funded as key congressional committees consider an extension of existing authorities. With current authorities set to expire on September 30, 2026, NACo asks Congress to maintain current funding levels in any extension or reauthorization legislation.

As principal stakeholders in America’s transportation systems, counties rely on consistent federal funding and work closely with federal, state and other local government partners to build and maintain transportation infrastructure. Congress must continue current funding levels to avoid disruptions to critical road, bridge and safety projects in communities across the country.  

Take Action

• Maintain current funding levels – including Division J advance appropriations – in any IIJA extension
• Avoid using an extension to make policy or programmatic changes outside the normal reauthorization or appropriations process

Background

Congress reauthorizes the U.S. Department of Transportation, several of its modal administrations and many of their funding programs every five years. The current reauthorization bill – the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58) – was enacted in 2021 and its program authorities will expire on September 30, 2026. As this deadline approaches, key committees in the U.S. House and Senate have signaled that a short extension of IIJA may be necessary as they complete work on a new comprehensive highway bill.  

Unlike prior reauthorization bills, the IIJA was unique because it included three different types of funding for transportation programs. First, the bill provided contract authority for spending that is paid for with funding from the Highway Trust Fund. Second, the bill authorized funding to be later appropriated out of the General Fund during the annual appropriations process. These two are standard for surface transportation bills.  

The IIJA also provided “advance appropriations” for dozens of programs in Division J of the bill. This meant that Congress appropriated money for Fiscal Years (FYs) 2022, 2023, 2024, 2025 and 2026. This created five years of funding certainty for those advance-appropriated programs, which were guaranteed to have funding each year regardless of what Congress chose to do in said fiscal year’s annual appropriations bill.

County Impact

Per the Congressional Research Service, 15 percent of the guaranteed funding for highway, bridge, transit and safety programs in the IIJA came from advance appropriations. Similarly, nearly all the funding for passenger and freight rail programs came from advance appropriations as well.

One example of an advance appropriations-funded program is the Bridge Formula Program (BFP). In the IIJA, Congress appropriated $5.5 billion per-year for Fiscal Years 2022 through 2026 for the BFP, creating multi-year certainty around funding availability. Another program of relevance to counties that received advance appropriations in the IIJA was the Safe Streets & Roads for All (SS4A) program.

Funding Cliff

As the IIJA approaches its expiration at the end of September of 2026, Congress will need to either pass a new, multi-year reauthorization or enact a short-term extension of the IIJA. However, if Congress simply extends the authorizations and contract authority in the IIJA, it would only continue a portion of the overall funding in the bill. The IIJA only provided advance appropriations through the end of FY 2026, meaning programs funded by IIJA advance appropriations will run out in FY 2027 unless new appropriations are made for those programs.

If Congress does not extend Division J of IIJA by providing new appropriations for those programs, then there would be a significant cut to overall transportation funding, including severe cuts to certain programs like SS4A and BFP.

NACo’s Advocacy

In the letters, NACo alongside state, local and industry coalition partners urged Congress to include Division J funding in any extension of IIJA authorities to ensure that all programs are extended at current funding levels. Without this, many programs would see significant reductions in funding levels – if not their complete elimination – which would jeopardize critical road, bridge, transit and safety projects in communities across the country.

Read Extension Letter

Read Division J Letter

Additionally, NACo urged Congress to enact a “clean” extension of IIJA authorities and avoid making policy or programmatic changes outside of the regular reauthorization or appropriations process, preserving counties’ ability to shape upcoming legislation.

Next Steps

During the surface transportation reauthorization process, NACo has continuously engaged key stakeholders and lawmakers as Congress considers programmatic and funding changes. NACo endorsed the Bridges And Safety Infrastructure for Community Success (BASICS) Act (H.R. 7437) as a blueprint for strengthening coordination between federal, state and local transportation agencies and increasing investment in local infrastructure. NACo supports the comprehensive BUILD America 250 Act (H.R. 8870), which contains key provisions from the BASICS Act and other NACo-endorsed bills.

NACo will continue to monitor extension legislation and urge Congress to uphold funding levels. County leaders are encouraged to reach out to their members of Congress now to share the importance of federal investment in local infrastructure.

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