Build Northwest Briefings
Briefing 01: Reauthorization of Federal Surface Transportation Funding
December 2025
Every five years Congress reauthorizes federal spending for surface transportation needs. The last time this occurred, in 2021, reauthorization was included in the Infrastructure Investment and Jobs Act (IIJA). To date, this legislation has funded over $1 billion in projects in the Northwest states. It is critical that Congress and the Administration reauthorize this bill with robust funding to ensure that our economy continues to grow. The Northwest congressional delegation is very senior and well positioned on the authorization and appropriations committees to ensure our voice will be heard on how the bill is structured and funded.
The Pacific Northwest Economic Region’s Build Northwest Council convened state legislators, committee staff, business leaders, academics and policymakers to join a virtual briefing on the status of the federal surface transportation bill reauthorization.
Speakers
The U.S. House of Representatives' Committee on Transportation and Infrastructure has nearly completed reauthorization legislation that will soon be reviewed by the House and Senate, and the Northwest Congressional delegation is in key positions of leadership. The surface transportation reauthorization will shape how future transportation projects will move forward in the Pacific Northwest and across the country.
Key Takeaways
Reauthorization Timeline & Funding Pressure
Congress faces a highly complex reauthorization cycle as advance appropriations under the Infrastructure Investment and Jobs Act (IIJA) expire in September 2026. Committee members are drafting initial legislative language, with markup expected in the first quarter of 2026.
Adding to this pressure, the Highway Trust Fund remains an ongoing issue. Spending continues to outpace revenue, with the system propped up by a $118 billion general fund transfer. Without new sources of revenue, the highway account is expected to run out of money by mid-2028 and the transit account by mid-2027, resulting in cuts to programs and potential budget points of order.
Committee Priorities & Bipartisan Dynamics
Within the House Transportation and Infrastructure Committee (T&I), safety remains a strong area of bipartisan alignment, particularly on issues such as reducing fatalities on roads, rail and other modes of transportation. The committee has also undertaken an aggressive outreach effort to gather input on reauthorization priorities, holding bipartisan staff meetings with roughly 120 stakeholder groups and soliciting policy, programmatic, and funding ideas—yielding approximately 11,000 requests from members and stakeholders.
Freight & Discretionary Programs
Freight advocates emphasize that many projects do not fit traditional formula structures, making it critical to maintain or expand IIJA-level discretionary resources. With construction costs rising 59% since 2021 and federal award and contracting processes that move slowly, the need for predictable and sustained capital funding is critical. Rail, ports, and multimodal programs – the sectors that serve as the foundation for the Pacific Northwest’s role as a leading export gateway – are particularly vulnerable. These sectors lack formula funding and rely heavily on discretionary grants to advance singularly complex projects.
About Build Northwest
Build Northwest Briefings provide a valuable forum for in-depth discussions on key issues impacting transportation and trade across the greater Pacific Northwest. Briefings are designed to convene state legislators, private sector leaders in transportation and infrastructure, and participants of the PNWER RIA’s working groups in rail, ports, supply chains and transit.
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