House THUD Subcommittee Unveils Big Cuts for Rail

by Sean Jeans-Gail, VP of Gov't Affairs + Policy

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While many of the eyes in the transportation world were focused on the introduction of BUILD America 250 Act, the House Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) quickly advanced its FY 2027 spending bill on a party‑line vote, teeing up consideration by the full committee in June.

What it does for passenger rail:

• Sharp funding cuts overall: The bill provides about $3.1 billion for passenger and freight rail, far below FY 2026 levels and representing a major reduction in federal rail investment.
• Amtrak funding reduced heavily: Direct Amtrak funding would fall to roughly $2.1 billion—a 69% cut when factoring in advanced appropriations from the Infrastructure Investment and Jobs (IIJA) Act. That includes:
  • $1.5 billion for the National Network, and
  • $650 million for the Northeast Corridor.
• Zeroes key passenger rail expansion programs: The bill cuts off new funding for the Federal‑State Partnership for Intercity Passenger Rail (FSP) program, a major source for corridor expansion and upgrades.
• Rescinds prior rail funding: It also rescinds $5.1 billion in FSP funds approved by the IIJA, redirecting them to fund Amtrak operations, other capital grant programs, and other purposes (including the rehabilitation and repair of Washington Union Station).
• Cuts grant and safety programs: Programs like CRISI and grade‑crossing improvements are reduced by roughly half or more, limiting infrastructure and safety upgrades.

If enacted, the House FY 2027 THUD bill would mark a major retrenchment in federal passenger rail policy—shifting from the expansion-oriented funding levels of the 2021 Infrastructure Investment and Jobs Act toward maintaining a smaller Amtrak system with far less funding for new corridors, major capital projects, and long-term growth.

This is a bad bill—but there’s still time to make your voice heard!

Join our campaign asking Congress to continue investment in a robust passenger rail network for ALL Americans.

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