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Full Breakdown

Federal Transit Grants Stall as the Trump Administration Withholds New Approvals

7/28/2026, 9:36:18 PM

Core Event: No New Capital Investment Grants Signed

Since President Donald Trump returned to the White House, the Federal Transit Administration (FTA) has not signed a single new agreement under the Capital Investment Grants program. Large-scale projects that were ready to move into the final phase of the pipeline—such as extensions of New York’s Second Avenue Subway, Chicago’s Red Line, the Hudson River Gateway Tunnel, and bus upgrades in Indianapolis and San Antonio—have been left in limbo.

Background: Decades of Federal Support for Transit Construction

For decades, the federal government has allocated billions of dollars in Capital Investment Grants to help localities build new rail lines, stations, and modern bus corridors. Recent examples include the Second Avenue Subway extension, the Chicago Red Line expansion, the Hudson River Tunnel, and bus infrastructure projects in Indianapolis and San Antonio.

Unallocated Funds and Project Delays

According to data released by the Federal Transit Administration, more than $7 billion designated by Congress remains un-obligated to any project. The administration also attempted to halt payments to the New York and Chicago projects, prompting court intervention to keep the work moving. The accumulation of unspent funds has heightened anxiety among transit agencies about the federal government’s commitment to major infrastructure.

Verbatim Quote

  • “It’s hard to look at the last year and see anything other than a deliberate slowdown of these grants,” — Steve Davis, director of the advocacy group Transportation for America