Congress Takes First Step On New Transportation Law
UPDATE: The Transportation Committee released an updated version of the BUILD America 250 Act known as an Amendment in the Nature of a Substitute (ANS). The multimodal grant program, BUILD, was zeroed out in this version of the bill that the Committee will vote on Thursday, May 21.
The current transportation law, the Infrastructure Investment and Jobs Act (IIJA), expires on Sept. 30, and Congress must pass a new law or extend IIJA to prevent key programs and funding from expiring.
This law is critically important to trails and active transportation, defining how funding is spent on trails and active transportation for years to come. It covers the programs that supply the largest sources of federal funding to develop, build, maintain and connect trails—the walking and biking infrastructure relied on by communities nationwide.
Congressional committees have been working on legislation to replace the expiring law for many months. This week the House Transportation and Infrastructure (T&I) Committee took the first step towards passing a new law when it announced a bipartisan agreement entitled the BUILD America 250 Act – Building Unrivaled Infrastructure and Long-term Development for America’s 250th Act.
While there is a long way to go before the next transportation law is final, every step in the process further solidifies the country’s transportation priorities for the next five years—including whether we can accelerate progress in building the hundreds of trail networks that will make walking and biking more functional in America.
What the BUILD America 250 Act Means for Trails, Walking and Biking
While the bill does not include the draconian cuts initially threatened—and preserves beneficial programs and policy—it is not a victory lap. Ultimately, this bill makes it harder for places to build out the connected active transportation infrastructure Americans want and need.
Here’s a topline summary of what’s in the bill and what’s not:
- IN: TA remains as a 10% set-aside of the surface transportation block grant, growing slowly to about $1.66 billion annually; also, new eligibilities for the Highway Safety Improvement Program (HSIP) allow funds to be used as a local match, but the bill makes it easier for states to transfer funds out of the program.
- IN: Recreational Trails Program (RTP) persists at $84 million despite the huge delta compared with the $281 million in gas tax receipts paid into the Highway Trust Fund by off-road motorized trail users.
- OUT: ATIIP is repealed, which creates challenges for communities nationwide pursuing large-scale active transportation networks.
- IN: Safe Streets and Roads for All ramps up at an average per year of $750 million.
- NEW: Surface Transportation Accelerator Grants, a complementary program to BUILD that includes a collection of previously stand-alone discretionary grant programs, is included at $2.4 billion annually and focuses on connectivity across modes of travel, safety and the economy.
A Deeper Look at What Would Change Under the House Bill
The House bill includes many shifts in how trails, walking and biking are treated—and has implications for how trail and active transportation networks will be prioritized all the way down to the state and local levels. Here is a detailed breakdown of the funding and policy changes by program.
Transportation Alternatives (TA)
- Good: The bill continues to authorize TA as a 10% set aside within the Surface Transportation Block Grant (STBG) program. The bill increases funding for the STBG program, which increases the funding available under TA. The baseline in FY26 is $1.4976 billion. Under this bill, TA grows with modest inflation to an average of $1.66 billion per year (+10.8% over baseline). This equals about 2.8% of the Federal Aid Highway Program. The bill also reduces barriers to using this program by allowing HSIP funding to be used as the local match.
- Bad: The bill repeals policy from the current law that protects TA funding from being transferred out of TA and used for other purposes. Since 1992, states have transferred nearly $3 billion out of TA, diluting its impact. In 2021, Congress sought to address this by restricting the ability to transfer funding out of TA. As a result, the amount of transfers has decreased and the impact of TA has grown substantially. With this bill, Congress would reopen the flood gates to transfers by removing the requirement that states demonstrate a lack of demand and allowing states to self-certify the legitimacy of their own transfers.
Recreational Trails Program (RTP)
- Good: The bill continues this important program without policy changes other than allowing e-bikes on non-motorized trails if state and local regulations permit.
- Bad: Unfortunately, the funding level persists at $84 million annually despite the huge delta compared with the $281 million in gas tax receipts paid into the Highway Trust Fund by off-road motorized trail users.
Active Transportation Infrastructure Investment (ATIIP)
The bill repeals ATIIP, the only program dedicated to large grants to complete gaps and build connected active transportation networks. ATIIP employs a proven approach, and the program has a history of bipartisan support.
Surface Transportation Accelerator Grant (STAG)
This new discretionary program is funded at $2.4 billion annually broken into three categories: Rural (¼ of funding), Urban (¼ of funding) and Local and Regional (½ of funding) grants. Across the three categories, grants can be awarded for a wide variety of projects. Eligibility for trails, biking and walking is clearest in the urban category, but RTC interprets the language to allow them in each. This is a multi-modal program and trails, biking and walking must compete with all other eligible project types. While active transportation networks can compete on their merits when U.S. Department of Transportation leadership recognizes their value, ambiguous eligibility is not helpful and RTC does not consider multi-modal programs a suitable substitute for dedicated funding such as ATIIP.
Better Utilizing Investments to Leverage Development (BUILD)
While the initial version of the bill included BUILD funding, the ANS eliminates funding for this critical program. Previously known as RAISE and TIGER, the BUILD program has invested in trails, biking and walking across multiple Administrations and is among the most impactful federal discretionary programs.
Safe Streets and Roads For All (SS4A)
- Good: The bill continues a program dedicated to reducing roadway injuries and fatalities, and which has invested in trails, biking and walking across the country. The bill provides an annual average of $750 million in guaranteed funding through the highway trust fund, and continues the data-driven approach that has made the program so successful.
- Bad: The bill reduces overall funding for SS4A compared to current law.
Carbon Reduction Program (CRP)
The bill repeals this formula program that was created under IIJA, providing critical additional resources for low carbon transportation, including trails, walking and biking. CRP was a formula program, which means it provided reliable guaranteed funding.
Reconnecting Communities Program (RCP)
RCP was created under IIJA to invest in infrastructure to overcome barriers created by previous infrastructure. The program supported investments in new biking and walking connections and, when combined with the Neighborhood Access and Equity program, it provided the single largest investment in trails, walking and biking of any federal discretionary program. The BUILD 250 Act does not provide new funding for RCP, though it does include the RCP eligibilities within the urban category of the new STAG program.
Neighborhood Access and Equity (NAE)
NAE was created in the Inflation Reduction Act as a complement to RCP, with an additional focus on trails, walking and biking infrastructure. One round of NAE awards provided over $750 million for this infrastructure. Unfortunately, Congress rescinded the majority of NAE funding in the One Big Beautiful Bill Act, and this bill repeals the entire program, a further setback to investing in safe, connected walking and bicycling routes.
Consolidated Funding Pilot Program
The bill creates a new pilot program to award ten states with their authorized formula funding through a combined lump sum for any project eligible under existing federal formula programs. While active transportation is eligible, this program does not include a TA set aside, nor does it contain policy to meaningfully influence how states invest these dollars, reducing the likelihood that funding will be allocated to trails, walking and biking. The program does require states to suballocate some funding to local governments and to consult with local communities about project selection. Importantly, the program would divert some of the STBG funding (and TA set aside) to eligible states, without the TA set aside, therefore reducing the impact of TA.
Bridge Programs
The bill authorizes both a formula and discretionary bridge program to fund both new bridges and maintenance. Bridges can be some of the most expensive impediments to building connected biking and walking infrastructure and a bridge program could be an opportunity to include bike and pedestrian infrastructure when constructing a new bridge or conducting maintenance. RTC is disappointed that these programs do not include clear eligibility and policy to encourage bicycle and pedestrian infrastructure on bridges.
Promoting Resilient Operations for Transformative, Efficient and Cost-saving Transportation (PROTECT) program
- Good: The program is funded at $500 million annually and walking and bicycling infrastructure, including trails, continues to be eligible.
- Bad: The bill eliminates the formula portion of this program and therefore substantially reduces overall funding.
Formula Programs
The core highway formula programs continue to receive the majority of federal funding for surface transportation. While the bill increases overall funding for these programs—and trails, biking and walking continue to be eligible—it does not include reforms that would ensure more formula dollars are allocated to this essential infrastructure.
What’s Next
While the House T&I Committee plans to markup (amend and vote on) the BUILD America 250 Act on May 21, 2026, it is not clear whether or if this bill will receive a vote by the full House, or when Senate committees will release their own proposals. And even though the current law is set to expire Sept. 30, there is a likelihood that it will be extended to allow more time for Congress to finish its work to define the next bill and for the president to sign it into law.
This process takes time, and each step can have consequential outcomes. There is much at stake for trails, walking and biking. RTC’s federal policy agenda outlines a strategy to build the nation’s essential walking and biking infrastructure through investment and policy reform to deliver the active transportation infrastructure America needs.
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