Transportation Secretary Sean Duffy proposed the elimination of the Highway Trust Fund’s mass transit account, a move that would shift federal focus toward the construction and expansion of interstate highways. In a July 22 letter addressed to six Senate leaders, Duffy outlined the administration’s priorities for the upcoming surface transportation legislation, which include transit safety, autonomous vehicle development, and freight railroad safety.
The proposal comes as Congress prepares to replace the current surface transportation act, which is set to expire on September 30. While the House Committee on Transportation and Infrastructure passed a bipartisan version of the bill in May, the Senate has not yet proposed its own version. The House bill currently authorizes $87.6 billion for the mass transit account between fiscal years 2027 and 2031, a figure Duffy’s proposal seeks to remove.
Beyond the elimination of the transit account, the Department of Transportation (DOT) proposal calls for cutting funds for "Complete Streets" programs, which are designed to enhance safety for pedestrians and bicyclists. Duffy requested that Congress restrict grants for bicycle lanes that reduce travel capacity for motor vehicles and suggested the removal of existing lanes that contribute to traffic congestion. Additionally, the proposal seeks to end eligibility for public transit improvements and tolling programs under a competitive grant program for urban traffic solutions.
The scale of the proposed shift is significant when compared to recent spending. The previous Infrastructure Investment and Jobs Act allocated $69.8 billion to the mass transit account, and the current House draft had proposed increasing that to $87.6 billion over five years. Under the new DOT proposal, those funds would no longer be guaranteed through the dedicated Highway Trust Fund account. Additionally, the proposal seeks to centralize authority over autonomous vehicles (AV), with Duffy suggesting a voluntary AV pilot program that would use federal preemptive authority to override what he described as a "patchwork" of state-level regulations. This could change how local and state governments manage self-driving cars on their own streets.
The knock-on effects of these changes could alter long-term urban planning and environmental goals. By eliminating grants for electric vehicle (EV) charging infrastructure and prioritizing highway expansion, the policy would shift resources away from the transition to electric transport and toward traditional combustion-engine vehicle capacity. This sets a precedent for reversing the "multi-modal" funding approach that has existed since the mass transit account was established in 1982. What happens next depends on the Senate's response to the administration's letter and whether a compromise can be reached before the current transportation act expires on September 30. If no legislation is passed by that deadline, existing programs may face a funding gap or require a temporary extension.