Legislative Affairs
Both the Texas Legislature and the United States Congress address many important transportation issues that affect the Dallas-Fort Worth area.
Transportation and air quality in the North Central Texas region are impacted by legislative decisions at the State and federal levels.
NCTCOG staff regularly update policy and technical committee members, transportation partners and others interested in monitoring legislative initiatives related to the Regional Transportation Council (RTC) legislative priorities.
In order to understand current legislative initiatives, the RTC directed the development of a Transportation Funding 101 primer so legislators and the general public can better understand funding sources for transportation as well as trends that impact the amount of funding available. A shortfall of funding has been identified and the primer also addresses potential solutions to increase funding options.
Legislative Update
July 18, 2025
FROM WASHINGTON, D.C.
One Big Beautiful Bill Act: Reconciliation Bill
After months of intense negotiations between Congress and the executive branch, Congress passed H.R. 1, the "One Big Beautiful Bill Act" (OBBBA), through the budget reconciliation process on July 3rd. On July 4th, President Trump signed OBBBA into law. OBBBA is positioned as the core of the administration's second-term domestic agenda. This legislation brings about significant changes in federal healthcare, tax policy, energy regulation, defense spending, education, agriculture, immigration, and infrastructure. For transportation, OBBBA makes both new targeted investments and significant cuts to previous programs. These changes include an investment in certain areas (e.g., maritime and airport infrastructure), while dedicated funding streams for climate and equality initiatives have decreased significantly, particularly in programs funded by the Inflation Reduction Act (IRA) of 2022. Within this larger framework, OBBBA contains many key provisions that have a direct impact on federal transportation policy.
Key transportation policy shifts include:
- NEPA “opt-in” fee: project sponsors may pay 125 % of estimated EA/EIS cost; deadlines fixed at 180 days (for Environmental Assessments) or 1 year (Environmental Impact Statements). Fast-track option now exists, but only for sponsors able to pay the premium, while §178 review-capacity funding is simultaneously rescinded.
- Equity and climate grant rescissions: Unobligated funds are rescinded for the Neighborhood Access & Equity (NAE), Low-Carbon Transportation Materials (LCTM), Clean Heavy-Duty Vehicles (CHDV), Diesel Emission Reduction Act (DERA, IRA) and FHWA Environmental-Review Implementation Funds, Climate Pollution Reduction Grants, and others.
- Ends several clean-vehicle incentives (commercial & consumer EV purchase credits 9/30/25; charging-station credit 6/30/26). Pulls forward fleet-electrification deadlines and may stall light- and heavy-duty EV uptake.
- No new revenue for the Highway Trust Fund; removed House-passed EV fee. Keeps the existing long-term HTF shortfall unresolved, deferring the issue to 2026 reauthorization.
- Repeals the pre-tax commuter benefit for biking to work (i.e., Active Bicycle Commuting Subsidy Policy). Permanently repeals the pre-tax commuter benefit for biking to work. Originally created by Congress in 2008 as a $20 monthly incentive, the bike benefit was suspended under the 2017 Trump tax law but scheduled to return in 2026.
Select rescinded Federal Funding includes:
| Program | Agency | Orignal Amount | *Rescinded Amount | Status in OBBBA | Potential Impact |
| Neighborhood Access & Equity | USDOT | $3.2b | ~$2.4b | All unobligated balances cancelled | Dozens of highway-removal, cap, and safe-streets projects lose their federal share, including many MPO and local government projects |
| FHWA Environmental-Review Implementation | USDOT | $100m | ~$100m | Entire fund cancelled | Training and staff-augmentation grants for NEPA offices are removed. |
| Clean Heavy-Duty Vehicles | EPA | $1.0b | ~$454m | Unobligated balances cancelled | Fleet-electrification awards for buses, drayage and school vehicles are clawed back. |
| Diesel Emission Reduction Act | EPA | $60m | ~$42m | Unobligated balances cancelled | Pending rail-switcher and truck retrofit projects lose funding. |
| Climate Pollution Reduction Grants | EPA | $5b | ~$100m | Unobligated balances cancelled | Grants supporting state and regional greenhouse gas reduction planning and implementation efforts (including for MPOs) are halted midstream. |
| Environmental and Climate Justice Block Grants | EPA | $3b | ~$2.3b | Unobligated balances cancelled | Community-driven environmental justice projects lose support for air quality, mobility, and climate resilience. |
Source: Association of Metropolitan Planning Organizations (AMPO)
Fiscal Year 2026 Appropriations Bills
On July 14, the House Transportation, Housing, and Urban Development (THUD) Appropriations Subcommittee approved the THUD Appropriations Act of 2026. The appropriation bill was amended by the full committee on July 17. The House THUD appropriations bill appropriates a total of $22.3 billion in gross new discretionary appropriations for 2026, a 12.4 percent cut from fiscal 2025 (-$3.1 billion). The bill significantly cuts public transit and passenger rail funding, compared to the authorized levels in the Infrastructure Investment and Jobs Act (IIJA).
Specifically, the THUD Appropriations bill, together with the IIJA’s advance appropriations, provides a total of $19.2 billion for public transit in FY 2026, a cut of $1.7 billion (-8.3 percent) from the FY 2025 enacted level, including cutting nearly all General Fund appropriations for Capital Investment Grants (CIG). In addition, the House THUD Appropriations bill and IIJA provides $13.6 billion for passenger and freight rail in FY 2026, a cut of $2.6 billion (-15.9 percent) from the FY 2025 enacted level. The bill cuts the General Fund appropriation for Amtrak by $115 million (-4.7 percent), while increasing funding for Consolidated Rail Infrastructure and Safety Improvements (CRISI) Grants by $438 million (403.8 percent) from the FY 2025 enacted levels. It also states that unobligated balances from FY25 from the Federal-State Partnership for Intercity Passenger Rail Program are rescinded and no funds may be provided to the State of Texas for a high-speed rail corridor development project in Texas or similar to the Amtrak Texas Central Project.
On July 17, the House Appropriations Committee met to consider the THUD Appropriations Act of 2026. The measure was approved by the Committee with a vote of 35 to 28. The final bill provides a total discretionary allocation of $89.910 billion, which is $4.458 billion (4.7%) below the FY 2025 enacted level. Investments include $2.307 billion for the Federal Aviation Administration (FAA), $4.4 billion from the IIJA to improve the movement of freight and the traveling public, and $3.8 billion for highways, rail, airports, and maritime infrastructure. The FIFA amendment was not approved.
FROM AUSTIN
The 89th Texas Legislature adjourned its Regular Session on June 2, 2025. The first Special Session of the 89th Legislature is scheduled to convene on July 21, 2025. Governor Abbott’s session agenda includes improving flood warning systems, providing relief funding for Hill Country flooding, enhancing natural disaster preparation and recovery, eliminating the STAAR test, cutting property taxes, restricting children’s access to THC, regulating hemp-derived products, advancing abortion legislation, banning taxpayer-funded lobbying, supporting human trafficking victims, addressing police personnel records, protecting women’s spaces, clarifying the Attorney General’s election powers, conducting Congressional redistricting, combating title theft and deed fraud, incentivizing water projects, and reforming the state judicial department. No transportation-related items were included in the governor’s agenda.
June Texas Transportation Commission (TTC) Hearing
The Texas Transportation Commission met on June 20. The draft 2026 Unified Transportation Program was presented. Covering a 10-year planning horizon, it outlines expected funding and its distribution across the state. The total UTP funding has decreased from $104.2 billion to $101.6 billion. Strategic initiatives under the UTP include an additional $1.7 billion for the Texas Clear Lanes program, targeting the most congested roadways, and $669 million for enhancing key statewide and rural corridors. The Draft 2026 UTP will be available for comment from June 27, 2025 through July 28, 2025 at 4 p.m. After reviewing public comments and necessary updates, the Texas Transportation Commission will consider adopting the 2026 UTP on August 21, 2025.
MONITORED BILLS LIST
If you need information on the bills being tracked, please contact Jackie Nolasco at jnolasco@nctcog.org.
RECENT COMMITTEE HEARINGS
US HOUSE
- The House Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials met on June 24 for a hearing on the role of innovation and technology in the U.S. rail system.
- The House Appropriations Subcommittee on Transportation and Housing met on July 14 for a subcommittee markup of draft Transportation-HUD appropriations bill for FY 2026.
- The House Transportation and Infrastructure Committee met on July 16 for a full committee hearing on USDOT oversight and the FY 2026 budget request.
- The House Appropriations Committee met on July 17 for a full committee markup of draft FY 2026 Transportation-HUD and Energy and Water appropriations bills.
US SENATE
- The Senate Environment and Public Works met on June 11 for a full committee business meeting to vote on nominations including Sean McMaster to be Federal Highway Administrator.
- The Senate Commerce, Science, and Transportation Subcommittee on Surface Transportation, Freight, Pipelines, and Safety met on June 18 for hearing on modernizing the U.S. rail network.
- The Senate Commerce, Science, and Transportation met on June 25 for a full committee business meetings to consider several bills and nominations including that of Bryan Bedford to be Federal Aviation Administrator.
- The Senate Environment and Public Works Committee met on July 16 for a full committee markup of draft FY 2026 Transportation-HUD and Energy and Water appropriations bills.
Texas Legislature - 89th Session January 14, 2025 - June 2, 2025
- Regional Transportation Council Legislative Program for the 89th Texas Legislature 
- 89th Texas Legislature Summary of Bills (2025)
Texas Legislature - 88th Session January 10, 2023 - May 29, 2023
- Regional Transportation Council Legislative Program for the 88th Texas Legislature
- 88th Texas Legislature Summary of Bills (2023)
Other Resources
Congressional Updates important to our region
In 2005 Congress passed the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) . This legislation guided surface transportation policy and funding through 2009. Nine short-term extensions passed since SAFETEA-LU expired in 2009. The final short-term extension of SAFETEA-LU extended surface transportation authorization through June 30, 2012.
On July 6, 2012, President Obama signed into law a two-year $105 billion surface transportation authorization, titled Moving Ahead for Progress in the 21st Century (MAP-21). MAP-21 reauthorized the federal-aid highway, highway safety and transit programs that were last authorized by SAFETEA-LU. New programs and funding levels began on October 1, 2012, and continued through September 30, 2014. The final short-term extension of MAP-21 expired on December 4, 2015.
On December 4, 2015, President Obama signed the Fixing America's Surface Transportation (FAST) Act into law, which authorizes Federal highway, transit, safety and rail programs for five years at $305 billion. The FAST Act is effective October 1, 2015 through September 30, 2020.
The Infrastructure Investment and Jobs Act (IIJA), signed into law by President Biden on November 15, 2021, is a five-year bill that authorizes $567.5 billion for surface transportation, including roads and bridges, and an additional $550 billion for water, broadband, cybersecurity, and energy infrastructure. With a total funding amount of $1.2 trillion, the act aims to modernize infrastructure across the nation and is set to expire on September 30, 2026.
2019 RTC Principles for Federal Surface Transportation Authorization