With report language in the final budget package for FY 2026, Congress continues to thwart some of the administration’s efforts to shrink government operations and spending by fiat. In the Department of Transportation’s section, projects cannot be terminated without following established federal financial assistance regulations and established agency protocols. DOT must also inform Congress of how it will address the substantial backlog of projects, particularly of “awarded but not obligated competitive grant and community project funding.” This includes previously passed congressionally directed spending projects (earmarks) that the agency has not awarded, which is certainly one way to antagonize appropriators. Additionally, any “reprogramming requests must be submitted to the Committees on Appropriations no later than June 30, 2026.”
DOT is to receive $74.47 million for department-wide research and technology, of which $56 million shall remain available until expended. Cybersecurity initiatives within the department are funded with an additional $60 million. Transportation planning, research, and development tops out just over $32 million, of which $9.647 million is for newly earmarked projects.
Unmanned Aircraft Systems is slated for $16 million in the FAA’s Engineering, Development, Test and Evaluation line item. Additionally, there is $10 million for UAS research and $14 million for the UAS Center of Excellence. The budget report also instructs the FAA to ensure any new final rule for controlling UAS beyond visual line of sight “is no more restrictive on operations than what is currently permissible…” (p. 13 of the report). FAA’s total research, engineering and development package is $290 million, $10 million more than FY 2025, and funds may remain available until September 2028.
The FY26 budget bill provides the Federal Railroad Administration with $40 million for rail-related R&D that may remain available until expended. The figure is $14 million less than the FY 2025 appropriation. Not less than $2.5 million of the total is to support “a rail research and development center of excellence.” The 2025 NOFO offered $5 million for a center but one is not listed among the current FRA FY26 projects report.
Relevant to entrepreneurship, six Small Business Transportation Resource Centers must be maintained, using a significant portion of the $5.33 million to be appropriated. Presently, however, the agency lists 11 centers across the country designed to support regional planning committees and help small businesses with market research, procurement, technical assistance, and liaison with prime contractors. The administration had requested this line item to be eliminated entirely.