The U.S. Federal Government expects to spend $140,000,000,000.00 on Transportation in 2025. This represents 2% of all Federal spending in 2025.
Transportation at the U.S. federal level encompasses the development, maintenance, and regulation of the nation’s infrastructure, including highways, bridges, public transit, rail systems, airports, and waterways. These programs aim to ensure safe, efficient, and accessible transportation systems that support economic growth, national security, and mobility for individuals and businesses. The Department of Transportation (DOT) oversees most federal transportation initiatives, working through agencies like the Federal Highway Administration (FHWA), Federal Transit Administration (FTA), Federal Aviation Administration (FAA), and Federal Railroad Administration (FRA). Federal transportation funding also supports infrastructure projects, safety standards enforcement, and the promotion of innovation in transportation technologies, such as electric vehicles and smart infrastructure.
Federal transportation programs are funded through a combination of general tax revenues and dedicated user fees. The largest source of dedicated funding is the Highway Trust Fund (HTF), which is financed primarily by federal fuel taxes on gasoline and diesel. Other revenue sources include airline ticket taxes, cargo fees, and tolls, as well as grants and state and local contributions for specific projects. The HTF supports the Federal-Aid Highway Program and public transit systems, while the Airport and Airway Trust Fund (AATF) finances aviation-related infrastructure and safety programs. General tax revenues are often used to supplement transportation funding, especially for large-scale infrastructure projects or during periods when trust fund revenues fall short.
Transportation spending is part of the discretionary portion of the federal budget and is allocated annually through the appropriations process. In fiscal year 2023, federal transportation expenditures totaled approximately $150 billion, representing about 2 percent of total federal spending. This funding supports a wide range of activities, including road and bridge construction, airport modernization, public transit subsidies, and rail safety improvements. A significant portion of federal transportation funding is distributed to states and local governments as grants, allowing them to plan and execute infrastructure projects that align with federal priorities and guidelines. The budgeting process for transportation begins with the DOT and its agencies submitting funding requests that outline their priorities, needs, and program goals. Congress reviews these requests and appropriates funding through annual spending bills, often influenced by infrastructure policy goals and economic considerations. Additionally, long-term funding is guided by multi-year surface transportation authorization bills, such as the Infrastructure Investment and Jobs Act (IIJA) enacted in 2021, which set funding levels and priorities for several years. Federal transportation spending is critical to maintaining and upgrading the nation’s infrastructure, addressing aging systems, and supporting emerging technologies that ensure the long-term sustainability and efficiency of U.S. transportation networks.
