Contents

• Introduction
• Department of Transportation
• Federal Aviation Administration
• Federal Highway Administration
• Federal Motor Carrier Safety Administration
• Federal Railroad Administration
• Federal Transit Administration
• Great Lakes St. Lawrence Seaway Development Corporation
• Maritime Administration
• National Highway Traffic Safety Administration
• Office of Inspector General
• Office of the Secretary
• Pipeline and Hazardous Materials Safety Administration

Summary

The Department of Transportation (DOT) is responsible for the federal regulation and funding of most modes of U.S. transportation. DOT is mainly organized into operating administrations that each oversee a mode of transportation (e.g., Federal Aviation Administration [FAA]) or maintain responsibility for a certain aspect of transportation (e.g., Federal Motor Carrier Safety Administration). Two offices—Office of the Secretary (OST) and Office of Inspector General (OIG)—have department-wide responsibilities. DOT also includes the Great Lakes St. Lawrence Seaway Development Corporation (GLSDC), a wholly owned government corporation that operates and maintains two locks on the St. Lawrence Seaway and other aspects of navigation infrastructure.

The Trump Administration's FY2026 budget request for DOT by operating administration and office was released in early 2025, allowing for comparison with FY2025 enacted funding. Enacted funding for FY2021-FY2024 provides additional context for the funding request. For surface transportation modes, the FY2021-FY2026 time period extends from the end of one authorization law that covered FY2016-FY2021, the Fixing America's Surface Transportation (FAST) Act (P.L. 114-94) of 2015, as extended, through the subsequent authorization law that covered FY2022-FY2026, the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). For aviation, FY2021-FY2026 extends from the FAA Reauthorization Act of 2018 (P.L. 115-254) to the FAA Reauthorization Act of 2024 (P.L. 118-63). Requested and enacted funding data are primarily derived from DOT's "budget estimates" documents.

Along with funding information, data from DOT's budget estimates provide workforce information for each administration and office in terms of full time equivalent (FTE) employees and the estimated FTE levels for FY2026 based on the budget request. These data do not reflect workforce changes that have occurred since January 2025; in many cases, FTEs are likely to be lower than reported.

Overall, DOT's budget request for FY2026 ($141 billion) is 7% lower than FY2025 enacted funding ($152 billion). The reduction comes mainly from the Trump Administration's requests to

• cancel funding for the Federal Highway Administration's (FHWA's) National Electric Vehicle Infrastructure Program and Charging and Fueling Infrastructure Grant Program,
• reduce funding for OST's National Infrastructure Investments from $345 million in FY2025 to $0 in FY2026, and
• reduce the appropriation to OST for the Essential Air Service program from $450 million in FY2025 to $142 million in FY2026.

DOT's budget request reduction also partially results from the $8.1 billion FY2025 appropriation for FHWA's Emergency Relief Program, the most Congress has ever provided to that program in a single appropriations act.

The budget request proposes a funding increase for most of the other operating administrations, including FAA for improvements to air traffic control and the Maritime Administration (MARAD) for shipbuilding programs. The FY2026 funding request for the Pipeline and Hazardous Materials Safety Administration and OIG matches enacted funding for FY2025.

The budget request for FY2026 would increase DOT FTE staff by about 900, from 54,100 in FY2025 to 55,000 in FY2026. Most of the increase would come from adding employees at FAA. The FY2026 request would reduce FTE staff in most of the rest of the administrations and offices, mainly expected from centralization of some services in OST. Ongoing actions during the current Trump Administration to restructure the federal workforce, such as deferred resignation programs, may affect the size and structure of DOT's workforce beyond the intent of the budget request.

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Introduction

The Department of Transportation (DOT) is responsible for the federal regulation and funding of most modes of U.S. transportation. DOT is mainly organized into operating administrations that each oversee a mode of transportation (e.g., Federal Aviation Administration [FAA]) or maintain responsibility for a certain aspect of transportation (e.g., Federal Motor Carrier Safety Administration [FMCSA]). Two offices—Office of the Secretary (OST) and Office of Inspector General (OIG)—have department-wide responsibilities. DOT also includes the Great Lakes St. Lawrence Seaway Development Corporation (GLSDC), a wholly owned government corporation that operates and maintains two locks on the St. Lawrence Seaway and other aspects of navigation infrastructure.

This report provides information on the Trump Administration's FY2026 budget request for DOT by operating administration and office in comparison with FY2025 enacted funding. Enacted funding for FY2021-FY2024 is presented for additional context for the funding request. For surface transportation modes, the FY2021-FY2026 time period extends from the end of one authorization law that covered FY2016-FY2021, the Fixing America's Surface Transportation (FAST) Act (P.L. 114-94) of 2015, as extended, and the subsequent authorization law that covered FY2022-FY2026, the Infrastructure Investment and Jobs Act (IIJA; P.L. 117-58). For aviation, this time period extends from the FAA Reauthorization Act of 2018 (P.L. 115-254) through the FAA Reauthorization Act of 2024 (P.L. 118-63). Requested and enacted funding data are primarily derived from DOT's "budget estimates" documents.¹

Along with funding information, this report describes the workforce of each administration and office in terms of full time equivalent (FTE) employees and the requested level for FY2026. These data are taken from DOT's budget estimates and generally do not reflect workforce changes that have occurred since January 2025. In many cases, FTEs are likely to be lower than reported.

Department of Transportation

Overall, DOT's budget request for FY2026 ($141 billion) is 7% lower than FY2025 enacted funding ($152 billion) (Table 1). The reduction comes mainly from the Trump Administration's requests to

• cancel funding for the Federal Highway Administration's (FHWA's) National Electric Vehicle Infrastructure Program (NEVI) and Charging and Fueling Infrastructure Grant Program (CFI),
• reduce funding for OST's National Infrastructure Investments from $345 million in FY2025 to $0 in FY2026, and
• reduce the appropriation to OST for the Essential Air Service program from $450 million in FY2025 to $142 million in FY2026.

DOT's budget request reduction also partially results from the FY2025 appropriation of $8.1 billion for FHWA's Emergency Relief Program, the most Congress has ever provided to that program in a single appropriations act.

The budget request proposes a funding increase for most of the other operating administrations, including FAA for improvements to air traffic control and the Maritime Administration (MARAD) for shipbuilding programs. The FY2026 funding request for the Pipeline and Hazardous Materials Safety Administration (PHMSA) and OIG matches enacted funding for FY2025.

The FY2026 budget request would increase DOT FTE staff by about 900, from 54,100 in FY2025 to 55,000 in FY2026 (Table 2). Most of the increase would come from adding employees at FAA. MARAD FTE staff would also increase. The budget request would reduce FTEs in most other administrations and offices, mainly expected from centralization of some administrative support services, such as information technology, in OST.

Since early 2025, the Trump Administration has taken several actions to restructure the federal workforce, including removing probationary employees; offering employees opportunities for deferred resignation; and pursuing mass layoffs, often referred to as a "reduction-in-force."² These efforts have been challenged in court by affected employees and federal employee unions, leading to some reversals and delays. In other cases, separated employees have been rehired by government agencies.³ The federal government may also attempt to hire more employees for certain purposes, such as air traffic control.⁴

The effect of these actions on DOT's workforce is not entirely clear. According to one news report, 7% of DOT's workforce has accepted the deferred resignation offer, about 4,000 employees.⁵ Roughly half of these are deferred resignations from FAA, about 5% of its workforce. Although other DOT offices and administrations had fewer deferred resignations, these staff reflect larger shares of the existing workforce. In order of the affected share of the total workforce of a DOT administration or office, the potential effect of the deferred resignation offer was reported as follows: Federal Transit Administration (FTA) (33%); National Highway Traffic Safety Administration (NHTSA) (28%); FHWA (26%); OIG (17%); OST (16%); Federal Railroad Administration (FRA) (14%); FMCSA (14%); PHMSA (13%); GLSDC (6%); FAA (5%); and MARAD (4%).⁶

Federal Aviation Administration

FAA programs are funded under four broad budget accounts: Operations and Maintenance (such as air traffic control and aviation safety functions); Facilities and Equipment (such as control towers and navigation beacons); grants for airports under the Airport Improvement Program (AIP); and Research, Engineering and Development. Some important issues for FAA are the age and operation of the air traffic control system, including the air traffic controller workforce, and aviation safety, including airline safety and aircraft certification.

FAA programs and activities are funded primarily through the Airport and Airway Trust Fund (AATF), a dedicated U.S. Treasury fund. Revenue sources for the AATF include passenger ticket taxes, segment fees, air cargo fees, and fuel taxes paid by commercial and general aviation aircraft. The FAA Reauthorization Act of 2024 (P.L. 118-63) authorized AATF taxes and revenue collections and civil aviation program expenditures through FY2028. Some funding for FAA was provided by the IJJA as multiyear advance appropriations. Annual appropriations typically provide additional funding for FAA programs (Table 3).

Enacted FAA funding for FY2025 totaled $26 billion. The Trump Administration's request for FY2026 is $27 billion, including the full amount authorized by the FAA Reauthorization Act of 2024 and the full amount appropriated by the IIJA. The request does not include additional funding in the annual appropriation. P.L. 119-21, the 2025 reconciliation act, provided $12.5 billion in FY2025 for air traffic control modernization. The President's requested funding allocation across the four FAA funding accounts is as follows: Operations and Maintenance (a requested increase of 2.7% in FY2026 from FY2025); Grants-in-Aid to Airports under the Airport Improvement Program (AIP) (0% difference); Facilities and Equipment (+26%); and Research, Engineering, and Development (-41%).

FAA had a workforce of about 43,600 FTEs in FY2025. The request seeks an increase of about 800 FTEs in FY2026 compared with FY2025 levels, largely reflecting a surge in air traffic controller hiring.⁷

Federal Highway Administration

Federal funding for highways is provided primarily through the federal-aid highway program administered by FHWA.⁸ Funding for highways in FY2025 totaled $78.4 billion, including $8.4 billion in annual appropriations (Table 4). The Trump Administration's request for FY2026 would be a 15% decrease in the amount provided in FY2025. The difference in funding levels is partially explained by

• the $8.1 billion appropriated for FHWA's Emergency Relief Program in FY2025, the most Congress has ever provided to that program in a single appropriations act;⁹
• the Trump Administration's request to cancel the FY2026 funding, as well as unobligated balances from prior fiscal years, for the National Electric Vehicle Infrastructure Program (NEVI)¹⁰ and the Charging and Fueling Infrastructure Grant Program (CFI);¹¹ and
• the Trump Administration's request for additional funding beyond what was provided in the IIJA for the Nationally Significant Multimodal Freight and Highway Projects Program (INFRA).

While electric vehicle charging infrastructure may be eligible for federal funding under other highway programs, NEVI and CFI narrowly focus on this infrastructure. For FY2026, the IIJA provided $1 billion in multiyear advance appropriations for NEVI and $700 million in contract authority for CFI.¹² According to DOT, NEVI and CFI have approximately $4 billion in unobligated balances.¹³ DOT previously stated that in the second round of CFI funding, the program "received 416 applications requesting a combined $4.05 billion in funding, more than six times the amount of funding available."¹⁴ In January 2025, President Trump issued Executive Order 14154,¹⁵ which, among other provisions, directed federal agencies to pause disbursement of NEVI and CFI funds. In February 2025, DOT rescinded NEVI guidance.¹⁶ In May 2025, 16 states and the District of Columbia filed a lawsuit challenging the Administration's actions.¹⁷ For more information, see CRS Insight IN12556, Status of Federal Implementation of EV Charging Infrastructure, by Melissa N. Diaz and Corrie E. Clark.

The Trump Administration is requesting an additional $770 million beyond what was provided in the IIJA for INFRA, bringing the total request for INFRA for FY2026 to $2.3 billion.¹⁸ According to DOT, "In the latest round of the INFRA program for FY 2025-2026, the Department received 175 eligible grant applications requesting more than $24.7 billion in grant funding, approximately 9 times the awarded amount of $2.7 billion."¹⁹

According to DOT, FHWA's workforce in FY2025 totaled 2,899 FTEs. The Administration is proposing to reduce staffing to 2,685 FTEs in FY2026 by transferring 214 FTEs and associated program funds supporting human resources, information technology, procurement, government affairs, communications, and civil rights to OST. OST would bill the modal administrations, including FHWA, for costs for these shared services through the Working Capital Fund.²⁰ The budget request does not address reported reductions in FHWA staff. For example, according to the Arkansas Department of Transportation (Arkansas DOT), FHWA's Arkansas Division Office staff have been reduced from 19 to 9, and Arkansas DOT may need to contact the FHWA Mississippi Division Office to reach an FHWA representative.²¹ Such a reduction in staff could affect highway program implementation and project timelines.

The IIJA authorized the federal-aid highway program from FY2022 through FY2026. As with previous authorization acts, the IIJA provided budget authority for highways mainly in the form of contract authority,²² with funds drawn from the highway account of the Highway Trust Fund.²³ Unlike previous authorization acts, the IIJA also provided funding through multiyear advance appropriations from the General Fund of the U.S. Treasury. The IIJA also authorized some funding for highways subject to future annual appropriations.²⁴ The IIJA provided a large nominal increase in annual federal funding for highways compared with the annual amount provided in the previous authorization, the FAST Act (P.L. 114-94), as extended, which authorized funding for FY2016-FY2021.

Federal Motor Carrier Safety Administration

FMCSA was established in 2000 to improve highway safety through regulation of equipment and operating standards for commercial motor vehicle operators. The IIJA authorized funding for FMCSA from FY2022 through FY2026. As with previous authorization acts, the IIJA provided budget authority mainly in the form of contract authority, with funds drawn from the highway account of the Highway Trust Fund. The IIJA also provided funding through multiyear advance appropriations from the General Fund. The IIJA provided a 60% increase in contract authority and an 89% increase in total budget authority for FMCSA when compared with the annual amount provided in the previous authorization, the FAST Act, as extended, which authorized funding for FY2016-FY2021. For FY2021-FY2025, FMCSA has not been provided additional discretionary budget authority in annual appropriations legislation (Table 5).

The President's FY2026 request for FMCSA totals $1,061 million, including the IIJA authorization of $926.6 million in contract authority and advance appropriations of $134.5 million. This is a 1.7% increase from the FY2025 funding level. According to DOT, FMCSA's workforce in FY2025 was 1,207 FTEs. The Administration is proposing to reduce staffing by 23% to 1,118 FTEs in FY2026. The President's budget requests staffing reductions in the Office of the Administrator, Office of Administration, and the elimination of the Office of the Chief Technology Officer. The Office of the Chief Technology Officer leads software development and modernization activities that support FMCSA's mission, including the Training Provider Registry for commercial driver's license pursuers and the Drug and Alcohol Clearinghouse for the monitoring of commercial motor vehicle operators. The number of FTEs at FMCSA in FY2021 was 1,156 and increased every year, to 1,285 FTEs in FY2024.²⁵

Federal Railroad Administration

FRA provides funding to monitor and enforce compliance with rail safety regulations, conduct rail research and development, subsidize the capital and operating expenses of the National Railroad Passenger Corporation (Amtrak), and award grants to improve passenger and freight rail infrastructure, service, and equipment. Amtrak is reliant on annual appropriations to continue operating its national system of passenger routes, and Amtrak and state sponsors have proposed dozens of new routes that are unlikely to be fully implemented without additional federal grant funds. Determining the level of funding available for Amtrak and rail infrastructure grants is likely to be an issue for appropriators.

The President's FY2026 budget request includes $3.2 billion in annual appropriations for FRA programs, an increase of $314 million from the $2.9 billion appropriated in FY2025.²⁶ Overall funding for Amtrak would be held at the same level as FY2025, but $291 million would be shifted from the Northeast Corridor allocation (reducing it to $850 million, a 26% decrease) to the National Network (increasing it to $1.58 billion, a 23% increase).²⁷ This is consistent with Amtrak's budget request for FY2026, which anticipates increased revenue from Northeast Corridor routes as newer trains are delivered and service improvements are achieved.²⁸ Funding levels for the FRA Safety and Operations account are proposed to remain steady, and Research and Development account funding would be reduced by $10 million to its FY2023 level ($44 million).

The overall increase in requested funding can be attributed to a proposed near-tripling of grant program funding, from $175 million to $500 million. This entire amount is proposed to be dedicated to the Consolidated Rail Infrastructure and Safety Improvements (CRISI) Program, with no additional funds appropriated to the Federal-State Partnership for Intercity Passenger Rail or other programs. The CRISI program can be used to fund a wide variety of projects to improve operations and safety, and it is considered popular among smaller freight railroad companies planning to upgrade their infrastructure or equipment.²⁹ Capital projects to support intercity passenger rail service are eligible uses of CRISI funds as are projects to improve safety at railroad crossings, including by eliminating the crossing. In the absence of funds dedicated for those specific purposes, FRA and the Secretary of Transportation would be able to exercise discretion in awarding grant funds among passenger, freight, or safety projects that meet eligibility criteria, potentially excluding certain project types. The President's budget does not propose changes to the $13.2 billion in multiyear advance appropriations provided under the IIJA, which includes $4.4 billion for Amtrak and $8.8 billion for competitive discretionary grants (Table 6).³⁰

FRA staff grew from 906 FTEs in FY2021 to 1,112 FTEs in FY2025 as its portfolio of programs expanded.³¹ The President's FY2026 budget proposes reducing FTEs to 1,018 FTEs, a reduction of 94 FTEs (8.5%). The proposed reductions would eliminate 70 FTEs from the FRA Office of Administration, which houses support functions such as information technology and human resources, and all FTEs currently assigned to the offices of Public Affairs, Government Affairs, and Civil Rights.³² The budget request assumes that these positions and functions would be consolidated within OST.³³ On the one hand, a consolidated office of administration serving DOT could reduce redundancies across multiple modes. On the other hand, it could be less responsive to FRA's specific program administration and oversight needs, potentially reducing program effectiveness. This staffing plan is not reflective of anticipated reductions in force at DOT.

Unlike highways and public transportation, there is no contract authority available for freight or passenger rail. Until the IIJA was enacted, all rail programs relied exclusively on annual appropriations. The IIJA provided a large nominal increase in annual federal funding for rail programs when compared with amounts appropriated pursuant to the previous authorizing legislation (the FAST Act) and provided $66 billion in multiyear advance appropriations for Amtrak and several competitive discretionary grant programs.³⁴

FRA Safety and Operations funding supports the agency's headquarters staff and its safety management teams distributed across the country. FRA administers annual funding for Amtrak, which is divided into separate grants for the Northeast Corridor (the line connecting Boston, New York City, and Washington, DC) and the National Network (including short-distance routes that receive operating support from states and long-distance routes fully funded by Amtrak). FRA also administers several grant programs that make funding available for states and/or rail carriers to improve or expand their infrastructure. These include the CRISI grant program established by the FAST Act, which can fund a wide variety of rail projects, and the Federal-State Partnership for Intercity Passenger Rail program established by the IIJA, which is limited to projects that improve or expand intercity passenger (as opposed to commuter or freight) rail service.

Federal Transit Administration

Federal funding assistance to public transportation agencies is provided primarily through the public transportation program administered by FTA.³⁵ The Trump Administration's request for FTA in FY2026 is a 1.5% increase from the amount provided in FY2025. The request includes the full amounts provided in the IIJA ($18.9 billion) and $2.4 billion in annual appropriations, 2.2% less than in FY2025 (Table 7). The FY2026 annual appropriations request would maintain the annual appropriations levels for the Capital Investment Grant (CIG) program (49 U.S.C. §5309) at $2.2 billion and the Washington Metropolitan Area Transit Authority (WMATA) at $150 million. The request would reduce appropriations for Transit Infrastructure Grants from $46 million to $0 in FY2025 and for Technical Assistance and Training funding from $7.5 million in FY2025 to $0. In FY2024 and FY2025, the Transit Infrastructure Grants provided additional amounts of funding for ferries, technical assistance for Tribes, bus testing, and technical assistance for transit agencies buying and operating zero emission buses. The FY2026 request does not include additional funding for the operational expenses of transit agencies facing reduced ridership and fare revenue resulting from the disruptions of the COVID-19 pandemic.³⁶ According to DOT, FTA's workforce in FY2025 was 694 FTEs. The budget request proposes to reduce staff to 622 FTEs in FY2026. The number of FTEs at FTA in FY2021 was 585 and increased every year, to 781 FTEs in FY2024.³⁷

The federal public transportation program was authorized from FY2022 through FY2026 as part of the IIJA. As with previous authorization acts, the IIJA provided budget authority for public transportation mainly in the form of contract authority with funds drawn from the mass transit account of the Highway Trust Fund. Unlike previous authorization acts, the IIJA also provided funding with multiyear advance appropriations from the General Fund. The IIJA also authorized some public transportation funding subject to annual appropriations. For example, the IIJA authorized $3 billion per fiscal year subject to appropriations for CIG in addition to multiyear advance appropriations of $1.6 billion per fiscal year. The IIJA provided a large nominal increase in annual federal funding for public transportation when compared with the annual amount provided in the previous authorization, the FAST Act (P.L. 114-94), as extended, which authorized funding for FY2016-FY2021.³⁸ Funding in FY2025 totaled nearly $21 billion, including $2.4 billion in annual appropriations.³⁹

Great Lakes St. Lawrence Seaway Development Corporation

GLSDC is a wholly owned government corporation that operates and maintains two locks on the St. Lawrence Seaway at Massena, NY, as well as other aspects of navigation infrastructure. (Canada owns and operates the other 13 locks on the seaway). GLSDC's budget is funded entirely from the Harbor Maintenance Tax, which is an ad valorem tax on imported and domestic cargo shipped through U.S. coastal and Great Lakes ports. Steel manufacturers are the primary users of the Great Lakes and St. Lawrence waterways, shipping iron ore from northern Minnesota mines to steel plants located on southern shores of the Great Lakes, as well as importing intermediate steel products through the seaway. Cargo volumes are in long-term decline, largely because waterborne shipment of iron ore is no longer advantageous to newer methods of steelmaking that use scrap metal shipped by rail and truck.⁴⁰ Although Lake Erie is in proximity to Marcellus Shale natural gas production, this has not led to a boom in shipment of gas from Lake Erie ports as it has for other U.S. ports. The Marcellus Shale gas is exported from the Port of Philadelphia via a pipeline connection to western Pennsylvania, and natural gas has displaced the need for shipping coal, traditionally the second leading commodity after iron ore, on the Great Lakes. The locks are closed in the winter due to ice and for repair and maintenance. The President's FY2026 budget request is consistent with prior year appropriations for GLSDC (Table 8).

Maritime Administration

MARAD supports the U.S.-flag ocean shipping fleet and U.S. commercial shipyards and thus is central to the President's goal of revitalizing the U.S. maritime industry.⁴¹ The President is requesting a large increase in grants for small shipyards (shipyards with fewer than 1,200 employees).⁴² This request is consistent with the President's goal of reviving commercial shipbuilding, although the request for the Title XI loan program for shipbuilding is not supported with an increase in requested funding. For this loan program, the President is requesting to rescind $86 million in prior year unobligated balances, with the following explanation:⁴³

The Title XI program currently has $1.3 billion in outstanding loan guarantees encompassing 16 contracts. The current available loan subsidy amount is $137.0 million which far outstrips anticipated obligations through the budget window. Therefore, the request cancels $86.0 million of those balances as an offset in support of other Administration priorities.

The President is also proposing to double the size of the U.S.-flag tanker security fleet from 10 tankers to 20 tankers with a $120 million request. These are privately owned tankers that carry fuel for the military. The funding is designed to offset the higher cost of sailing under U.S. flag with U.S. crews and is provided as an annual operating subsidy to enrolled carriers.⁴⁴ The President's nominee to head MARAD has written that this tanker program should be subsidized to compete in carrying fuel in private markets, not for the military. Thus, it can serve as additional tanker capacity in times of war rather than displacing the private tanker fleet the military is currently chartering.⁴⁵

The President's FY2026 budget request also includes $550 million for Port Infrastructure Development Program (PIDP) competitive grants for seaports, which is a substantial increase from prior year appropriations (Table 9).⁴⁶ The $550 million is in addition to the $450 million provided per year in multiyear advance appropriations in the IIJA. Port infrastructure projects have historically been funded by private industry and local port authorities. FY2019 was the first year Congress began funding this program. In FY2024, $71 million of this funding was earmarked for 22 port projects.⁴⁷

The President's FY2026 budget request proposes 914 FTEs for MARAD, an increase from 858 in FY2025. The increase is largely for staffing at the U.S. Merchant Marine Academy and for administration of the PIDP grants.

National Highway Traffic Safety Administration

NHTSA is responsible for motor vehicle safety, highway safety, behavioral safety programs, motor vehicle information, and automobile fuel economy programs.⁴⁸ NHTSA conducts research to inform safety standards, though its studies and rulemakings sometimes do not meet the deadlines set by Congress.⁴⁹ As technologies and designs of vehicles advance, NHTSA faces the challenge of maintaining regulations that allow for innovative design and safety improvement at a pace that aligns with industry advancement.

NHTSA is funded by contract authority, annual appropriations, and multiyear advance appropriations. The FAST Act, as extended, provided NHTSA with contract authority from the Highway Trust Fund from FY2016 through FY2021. The IIJA provided NHTSA with contract authority from the Highway Trust Fund and supplemental multiyear advance appropriations from the General Fund for FY2022-FY2026. NHTSA also receives annual appropriations.

The Trump Administration's FY2026 request of $1.6 billion is a 6.8% decrease in the amount provided in FY2025 (Table 10).⁵⁰ The request includes a reduction in amounts provided in the IIJA ($1.60 billion instead of $1.75 billion) and the same level of annual appropriations as in FY2025. The budget request represents the full amount of the IIJA authorization for the Operations and Research account but a lower amount for Highway Safety Grants. The FY2026 funding request would continue the same level of advance appropriations, $321 million, as the preceding years. The Trump Administration proposes reductions to annual appropriations for rulemaking (-1.9%), enforcement (-2.9%) and for research and analysis (-4.4%).

According to DOT, NHTSA's staff in FY2025 was 745 FTEs. The Trump Administration proposes staffing levels of 697 FTEs in FY2026. NHTSA's staff reached 848 FTEs in FY2024, up from 620 FTEs in FY2021. NHTSA has previously cited resources, funding, and workforce as factors that impact the agency's ability to meet deadlines set by Congress to complete rulemakings, reports, and safety research.⁵¹ Further decreases in resources could continue to affect NHTSA's ability to conduct research and publish rules as automakers seek to incorporate new technologies, such as automation, into new vehicles on the road.

Office of Inspector General

OIG conducts independent audits, investigations, and evaluations of DOT programs and operations, including contracts and grants. OIG is funded by annual appropriations and a transfer of multiyear advance appropriations (IIJA, Division J) from other accounts. In total, OIG funding in FY2025 was $121 million. The Trump Administration has requested the same amount of funding for FY2026 (Table 11). There were 395 FTES in OIG in FY2025. The Trump Administration is requesting the same level of FTEs in FY2026.⁵²

Office of the Secretary

The Secretary of Transportation leads DOT and is the principal adviser to the President on transportation and federal transportation programs. OST develops and oversees national transportation policy and administers some grant, research, and credit programs. OST is funded by contract authority, annual appropriations, and multiyear advance appropriations (IIJA, Division J).

In total, OST funding in FY2025 was $5.4 billion. The Trump Administration has requested $4.7 billion for FY2026, 12% less than FY2025 funding (Table 12).⁵³ The request includes the full amounts provided in the IIJA. The major proposed changes are zeroing out the National Infrastructure Investments from $345 million in FY2025 and a reduction in the appropriation for the Essential Air Service (EAS) program from $450 million in FY2025 to $142 million in FY2026. The EAS provides subsidies to airlines to provide service in certain small communities. The President's budget is proposing no new funding for the Rural and Tribal Infrastructure Advancement Program. Additionally, the request proposes to consolidate the functions of the Office of Civil Rights and the Office of Small and Disadvantaged Business Utilization and Outreach into the OST administrative account. There is a proposed increase for Cybersecurity Initiatives to address threats to DOT's information technology and industrial control systems. There is also a proposed increase for Transportation Planning, Research, and Development to support improving the environmental review of transportation projects.

FTEs in OST for FY2026 are requested to be 2,500, up from 1,870 in FY2025. According to DOT, this increase is requested to consolidate support functions, such as human resources, information technology, procurement, government affairs, and communications and civil rights, into OST through the Working Capital Fund.

Pipeline and Hazardous Materials Safety Administration

PHMSA is responsible for pipeline safety and the safe transport of hazardous materials (hazmat) by all transportation modes. The President is requesting the same amount of annual appropriations for FY2026 as was enacted for FY2025 (Table 13). The President's budget request includes $200 million per year multiyear advance appropriations provided in Division J of the IIJA. The President's budget request is proposing to reduce FTEs by 46, from 622 in FY2025 to 576 in FY2026, mostly in PHMSA's administration and financial offices.⁵⁴

PHMSA has the primary responsibility for the formulation, administration, and oversight of onshore pipeline safety regulations in the United States. The agency carries out such responsibilities through its Office of Pipeline Safety, which oversees pipeline operators, supports state pipeline safety agencies, and cooperates with other federal agencies that have pipeline safety responsibilities, among other duties. In executing its pipeline safety functions, PHMSA conducts programmatic inspections of management systems and procedures, inspects facilities and construction, investigates safety incidents, and maintains a dialogue with pipeline operators. The agency clarifies its expectations through orders, guidance manuals, and public meetings. It also administers a pipeline safety research and development program to address emerging risks and new technologies.⁵⁵

PHMSA also regulates the safe packaging of hazmat by road, rail, and water transport and provides grants for training emergency personnel to respond to hazmat incidents. PHMSA reports that the annual number of safety incidents involving highway transport of hazmat increased by 62%, from 15,130 incidents in 2015 to 24,557 in 2024, but the total number of injuries from those incidents decreased from 157 in 2015 to 37 in 2024.⁵⁶ This suggests that the severity of the incidents declined and/or emergency response capabilities improved.

With the onset of greater oil and natural gas production from horizontal drilling, the petrochemical industry is booming. PHMSA's FY2026 budget request states the following:⁵⁷

Given the growing international demand for American energy products and chemicals, along with rising domestic demand for lithium-ion battery-powered technologies, we expect a steady increase in the volume, frequency, and value of hazardous materials shipments.

According to DOT, PHMSA's workforce in FY2025 was 622 FTEs. The Trump Administration proposes 576 FTEs in FY2026. The number of FTEs at PHMSA increased from 589 in FY2021 to a recent high of 646 FY2024.

Footnotes

1.	U.S. Department of Transportation (DOT), "DOT Budget and Performance Documents: Budget Estimates," https://www.transportation.gov/mission/budget/dot-budget-and-performance-documents#BudgetEstimates.
2.	Madeleine Ngo et al., "Trump Officials Escalate Layoffs, Targeting Most of 200,000 Workers on Probation," New York Times, February 13, 2025; Eric Katz, "Some Agencies Are Walking Back Planned Layoffs, Trump Administration Says," Government Executive, July 15, 2025, https://www.govexec.com/workforce/2025/07/some-agencies-are-walking-back-planned-layoffs-trump-administration-says/406737/.
3.	Eileen Sullivan, "Federal Workers' 'Emotional Roller Coaster': Fired, Rehired, Fired Again," New York Times, July 15, 2025.
4.	DOT, "U.S. Transportation Secretary Sean P. Duffy Unveils New Package to Boost Air Traffic Controller Workforce," press release, May 1, 2025, https://www.transportation.gov/briefing-room/us-transportation-secretary-sean-p-duffy-unveils-new-package-boost-air-traffic.
5.	Chris Marquette, "7 percent of DOT Staff Taking Early-Buyout Offers," Politico, July 17, 2025.
6.	Marquette, "7 percent of DOT Staff Taking Early-Buyout Offers"; and CNBC, "U.S. Auto Safety Agency Shedding More Than 25% of Employees: Reuters," July 17, 2025, https://www.cnbc.com/amp/2025/07/17/us-auto-safety-agency-shedding-more-than-25percent-of-employees.html.
7.	For Federal Aviation Administration (FAA) budget estimates for FY2022-FY2026, see DOT, "DOT Budget and Performance Documents: Budget Estimates, FY2022-FY2026," https://www.transportation.gov/mission/budget/dot-budget-and-performance-documents#BudgetEstimates.
8.	CRS Report R47022, Federal Highway Programs: In Brief.
9.	American Relief Act, 2025 (P.L. 118-158). For a list of other acts that have provided additional funding to the Federal Highway Administration's (FHWA's) Emergency Relief Program, see CRS Report R47724, Emergency Relief Program for Disaster-Damaged Highways and Bridges, by Ali E. Lohman. The Emergency Relief Program typically has a backlog of funding requests. See CRS Report R48297, The Backlog of Requests for Aid from the Federal Highway Administration's Emergency Relief Program, by Ali E. Lohman.
10.	P.L. 117-58, Division J, Title VIII, Highway Infrastructure Program heading; for more information about the National Electric Vehicle Infrastructure Program, see DOT, FHWA, "Fact Sheet: National Electric Vehicle Infrastructure Formula Program," January 31, 2025, https://www.fhwa.dot.gov/infrastructure-investment-and-jobs-act/nevi_formula_program.cfm.
11.	For more information about the Charging and Fueling Infrastructure Program, see DOT, FHWA, "Fact Sheet: Charging and Fueling Infrastructure Discretionary Grant Program," January 31, 2025, https://www.fhwa.dot.gov/infrastructure-investment-and-jobs-act/charging.cfm; and DOT, FHWA, Office of Planning, Environment, and Realty, "Charging and Fueling Infrastructure Discretionary Grant Program," February 24, 2025, https://www.fhwa.dot.gov/environment/cfi/.
12.	P.L. 117-58, Division J, Title VIII, Highway Infrastructure Program heading, and §11101(b)(1)(C)(v).
13.	DOT, FHWA, Budget Estimates: Fiscal Year 2026: Federal Highway Administration, May 2025, p. II-2, https://www.transportation.gov/sites/dot.gov/files/2025-05/FHWA_FY_2026_Budget_Estimates.pdf.
14.	DOT, FHWA, "Investing in America: Biden-Harris Administration Announces $635 Million in Awards to Continue Expanding Zero-Emission EV Charging and Refueling Infrastructure," January 10, 2025, https://highways.dot.gov/newsroom/investing-america-biden-harris-administration-announces-635-million-awards-ev-charging.
15.	Executive Order 14154 of January 20, 2025, "Unleashing American Energy," 90 Federal Register 8353.
16.	Letter from Emily Biondi, associate administrator of FHWA, Office of Planning, Environment and Realty, to FHWA State Department of Transportation Directors, February 6, 2025, https://www.fhwa.dot.gov/environment/nevi/resources/state-plan-approval-suspension.pdf.
17.	Washington State Office of the Attorney General, "AG Brown Co-Leads States Suing to Stop Illegal Termination of Federal Electric Vehicle Infrastructure Funding," press release, May 7, 2025, https://www.atg.wa.gov/news/news-releases/ag-brown-co-leads-states-suing-stop-illegal-termination-federal-electric-vehicle.
18.	23 U.S.C. §117; for more information about the Nationally Significant Multimodal Freight and Highway Projects Program (INFRA) program, see DOT, "The INFRA Grant Program," October 31, 2024, https://www.transportation.gov/grants/infra-grant-program.
19.	DOT, FHWA, Budget Estimates: Fiscal Year 2026: Federal Highway Administration, May 2025, p. III-83, https://www.transportation.gov/sites/dot.gov/files/2025-05/FHWA_FY_2026_Budget_Estimates.pdf.
20.	DOT, FHWA, Budget Estimates: Fiscal Year 2026: Federal Highway Administration, May 2025, p. III-142, https://www.transportation.gov/sites/dot.gov/files/2025-05/FHWA_FY_2026_Budget_Estimates.pdf.
21.	Amir Mahmoud, "Arkansas Federal Highway Administration Office to Merge with Mississippi, State Highway Commissioners Told During Meeting," Arkansas Democrat Gazette, June 19, 2025, https://www.arkansasonline.com/news/2025/jun/19/arkansas-federal-highway-administration-office-to/.
22.	Contract authority is a type of budget authority that is available for obligation even without an appropriation, although appropriators are to eventually provide liquidating authority to pay the obligation. For more information about the difference between contract authority and appropriated budget authority, see DOT, FHWA, Funding Federal-Aid Highways, FHWA-PL-17-011, January 2017, pp. 12-14, https://www.fhwa.dot.gov/policy/olsp/fundingfederalaid/FFAH_2017.pdf.
23.	CRS Report R48472, The Highway Trust Fund's Highway Account, by Ali E. Lohman.
24.	For an overview of the FHWA programs authorized in P.L. 117-58, see DOT, FHWA, Highway Authorizations Under the Infrastructure Investment and Jobs Act (P.L. 117-58), November 30, 2021, https://www.fhwa.dot.gov/infrastructure-investment-and-jobs-act/docs/highway_authorizations_nov302021.pdf.
25.	For Federal Motor Carrier Safety Administration budget estimates for FY2022-FY2026, see DOT, "DOT Budget and Performance Documents: Budget Estimates, FY2022-FY2026," https://www.transportation.gov/mission/budget/dot-budget-and-performance-documents#BudgetEstimates.
26.	DOT, Budget Estimates, Fiscal Year 2026: Federal Railroad Administration, p. 6, https://www.transportation.gov/sites/dot.gov/files/2025-05/FRA_FY_2026_Budget_Estimates_CJ.pdf.
27.	DOT, Budget Estimates, Fiscal Year 2026: Federal Railroad Administration, p. 5.
28.	Amtrak, General and Legislative Annual Report and Fiscal Year 2026 Grant Request, p. 11, https://www.amtrak.com/content/dam/projects/dotcom/english/public/documents/corporate/reports/Amtrak-General-Legislative-Annual-Report-FY2026-Grant-Request.pdf.
29.	Testimony of Chuck Baker, president, American Short Line and Regional Railroad Association, in U.S. Congress, House Committee on Transportation and Infrastructure, Subcommittee on Railroads, Pipelines, and Hazardous Materials, America Builds: Examining America's Freight and Passenger Rail Network, hearing, 119th Cong., 1st sess., January 23, 2025, https://transportation.house.gov/uploadedfiles/01-23-2025_rph_hearing_-_chuck_baker_-_testimony.pdf.
30.	DOT, Budget Estimates, Fiscal Year 2026: Federal Railroad Administration, p. 5.
31.	CRS analysis of Federal Railroad Administration budget estimates for FY2022-FY2026; see DOT, "DOT Budget and Performance Documents: Budget Estimates, FY2022-FY2026."
32.	DOT, Budget Estimates, Fiscal Year 2026: Federal Railroad Administration, p. 4.
33.	DOT, Budget Estimates, Fiscal Year 2026: Federal Railroad Administration, p. 13.
34.	P.L. 117-58, Division J.
35.	CRS Report R47002, Federal Public Transportation Program: In Brief, by William J. Mallett.
36.	CRS Report R47900, Federal Support of Public Transportation Operating Expenses, by William J. Mallett.
37.	For Federal Transit Administration budget estimates for FY2022-FY2026, see DOT, "DOT Budget and Performance Documents: Budget Estimates, FY2022-FY2026," https://www.transportation.gov/mission/budget/dot-budget-and-performance-documents#BudgetEstimates.
38.	The authorizations in P.L. 114-94 were for FY2016-FY2020; they were extended through FY2021 by the Continuing Appropriations Act, 2021, and Other Extensions Act (P.L. 116-159).
39.	Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4).
40.	CRS Report R44664, The Great Lakes-St. Lawrence Seaway Navigation System: Options for Growth, by John Frittelli; and CRS Report R47550, Shipping on the Great Lakes and St. Lawrence Seaway: An Update, by John Frittelli.
41.	Executive Order 14269 of April 9, 2025, "Restoring America's Maritime Dominance," 90 Federal Register 15635, https://www.federalregister.gov/documents/2025/04/15/2025-06465/restoring-americas-maritime-dominance.
42.	Maritime Administration, "Small Shipyard Grants," https://www.maritime.dot.gov/grants-finances/small-shipyard-grants.
43.	DOT, Budget Estimates FY2026: Maritime Administration, p. 101, https://www.transportation.gov/sites/dot.gov/files/2025-05/MARAD_FY_2026_Budget_Estimates_CJ.pdf#page=107.
44.	For more information, see CRS Report R46654, U.S. Maritime Administration (MARAD) Shipping and Shipbuilding Support Programs, by Ben Goldman.
45.	Stephen M. Carmel, "Tankers for the Pacific Fight: A Crisis in Capability," Center for International Maritime Security, January 23, 2023, https://cimsec.org/tankers-for-the-pacific-fight-a-crisis-in-capability/.
46.	Maritime Administration, "Port Infrastructure Development Program," https://www.maritime.dot.gov/PIDPgrants.
47.	U.S. Congress, House Committee on Appropriations, Departments of Transportation, and Housing and Urban Development, and Related Agencies Appropriations Bill, 2024, report to accompany H.R. 4820, 118th Cong., 1st sess., H.Rept. 118-154, https://www.congress.gov/118/crpt/hrpt154/CRPT-118hrpt154.pdf#page=232.
48.	National Highway Traffic Safety Administration (NHTSA), "Laws and Regulations," https://www.nhtsa.gov/laws-regulations; 49 U.S.C. §301; 49 U.S.C. §303; 49 U.S.C. §321; 49 U.S.C. §325; 49 U.S.C. §327; 49 U.S.C. §329; and 49 U.S.C. §331.
49.	U.S. Government Accountability Office (GAO), Traffic Safety: Implementing Leading Practices Could Improve Management of Mandated Rulemakings and Reports, GAO-22-104635, April 26, 2022, https://www.gao.gov/products/gao-22-104635; Kris Van Cleave, "NHTSA Is Over 5 Months Late in Meeting Deadline to Strengthen Car Seats," CBS News, April 3, 2024, https://www.cbsnews.com/news/nhtsa-is-over-five-months-late-in-meeting-deadline-to-strengthen-car-seats/; and Letter from Sen. Edward J Markey et al., to Sophie Shulman, deputy administrator, NHTSA, November 20, 2024, https://www.markey.senate.gov/download/nhtsa-traffic-safety-letter.
50.	NHTSA, NHTSA Budget Estimates, FY2021-FY2026.
51.	NHTSA, Report to Congress: NHTSA Rulemakings Related to Automated Driving System-Equipped Vehicles, May 2024, https://www.nhtsa.gov/sites/nhtsa.gov/files/2024-05/Report-to-Congress-NHTSA-Rulemakings-Related-to-Automated-Driving-System-Equipped-Vehicles.pdf; NHTSA, Report to Congress: Rulemaking Status Report, December 2024, https://www.nhtsa.gov/sites/nhtsa.gov/files/2024-12/report-congress-status-rulemakings-december-2024.pdf; and GAO, Traffic Safety, GAO-22-104635.
52.	For Office of Inspector General budget estimates for FY2022-FY2026, see DOT, "DOT Budget and Performance Documents: Budget Estimates, FY2022-FY2026," https://www.transportation.gov/mission/budget/dot-budget-and-performance-documents#BudgetEstimates.
53.	These amounts exclude reimbursable accounts for Salaries and Expenses, the Volpe Center Working Capital Fund, the Office of the Secretary's Working Capital Fund, and the Transportation Safety Institute. They also exclude Essential Air Service program funding provided by overflight fees collected by FAA.
54.	DOT, Budget Estimates FY2026: Pipeline and Hazardous Materials Safety Administration, pp. 8 and 9, https://www.transportation.gov/sites/dot.gov/files/2025-05/PHMSA_FY_2026_Budget_Estimates_CJ.pdf.
55.	CRS Report R44201, DOT's Federal Pipeline Safety Program: Background and Issues for Congress, by Paul W. Parfomak.
56.	DOT, Pipeline and Hazardous Materials Safety Administration (PHMSA), "Hazardous Materials Incident Statistics," https://www.phmsa.dot.gov/hazmat-program-management-data-and-statistics/data-operations/incident-statistics.
57.	DOT, Budget Estimates FY2026: Pipeline and Hazardous Materials Safety Administration, p. 52, https://www.transportation.gov/sites/dot.gov/files/2025-05/PHMSA_FY_2026_Budget_Estimates_CJ.pdf.