I. Introduction

This year, Congress gave the highway lobby a victory in a transportation funding battle, while putting public transit and rail projects at risk of financial devastation.

For many Americans, the cost of getting to work proves to be the single biggest bill after keeping a roof over their heads. The United States is famous for its paucity of transportation options, with car dependency the default across most of the country. Far from a natural consequence of America’s vast and varied geography, Americans’ lack of transportation options is a product of deliberate policy choices to limit freedom of mobility. Throughout his career, Donald Trump has supported the politics of geographic exclusion. In 2020, he claimed that Democrats sought to sabotage the lifestyles of those "living their Suburban Lifestyle Dream” via low-income housing options in wealthy neighborhoods. In his second term, Trump has stated he wants housing prices to continue to increase, with his Department of Housing and Urban Development (HUD) moving to gut fair housing rules. 

Unsurprisingly, an administration that has worked to limit housing options for low-income workers in wealthy areas has also worked to sabotage America’s limited transit options. This includes the Trump administration’s freezing of funds for New York City’s Second Avenue Subway project; after the MTA sued, the administration agreed to release nearly $60 million in withheld funding. For years, mounting car prices and insurance costs have made the importance of expanding transit options even more obvious. Trump’s illegal war in Iran, which has led gas prices to rise considerably, has made the cost of car dependency on workers even more apparent. 

Despite the urgency of the situation, the Republican-controlled Congress has failed to invest in transit options. Beginning October 1, the congressional stopgap left transit and passenger rail without the advance appropriations available in fiscal 2026. The lapse of this funding stands to strain local and regional transit agencies. Transportation for America noted that regular highway funding will continue through December 11. This is both a reflection of politicians’ ideological distaste for public transit as well as the embedded influence of industry lobbyists in D.C. The “highway lobby,” composed of transportation-focused groups like the American Trucking Associations (ATA) and broader industry groups like the U.S. Chamber of Commerce, wields significant influence in transportation funding. 

II. The Cost of Car Dependence

COST BURDENS ON EVERYDAY AMERICANS

Only a small minority of U.S. housing units are located within half a mile of frequent transit (bus or rail) service. The result of embedded car dependency is that auto ownership takes a major financial toll on Americans. Bureau of Labor Statistics data show that in 2024, U.S. households spent an average of $13,318 per annum on transportation, coming out to 17% of total expenditures. This outpaces money spent on food, itself a top cost-of-living concern, and represents the single highest category besides housing costs. Everyday consumers have taken notice that car prices are increasingly expensive, a trend that hits Americans hard at a time when car insurance rates are projected to rise in 32 states in 2026.

Unsurprisingly, the Institute for Transportation and Development Policy (ITDP) estimates that cars consume around 93 percent of transportation spending by American households. The ITDP’s analysis estimated that American households on average spend about five percentage points more of their budgets on transportation than households in the European Union. As a result, the gas price spike from Trump’s war in Iran has a disproportionate impact on everyday Americans who lack real transportation alternatives. 

Reliable public transit options don’t just benefit Americans through providing a lower-cost option for traveling. Expanding public transit, particularly in urban areas known for heavy traffic, is crucial for easing congestion. The Trump administration and Corporate America have pushed workers back to the office through return-to-office (RTO) mandates. In a country built around car travel, mandatory commutes mean both more hours lost to traffic and more money spent getting to work.

RECENT LEGISLATIVE DEVELOPMENTS

In 2021, Congress passed the Bipartisan Infrastructure Law. The bill included provisions combining regular transit funding through both the Highway Trust Fund’s Mass Transit Account, as well as regular passenger-rail appropriations with additional multiyear funding guaranteed in advance. Five years later, the bill’s surface-transportation authorization ended September 30, 2026. 

Congress ultimately passed a stopgap measure extending regular funding, including the Highway and Mass Transit accounts, through December 11. It did not renew the advance appropriations on which transit and passenger rail relied. The cuts, which went into effect October 1, stand to financially harm U.S. transit systems. On an annualized basis, the American Public Transportation Association (APTA) estimates federal public transit and passenger rail investment will fall 20 percent and 81 percent, respectively, from fiscal 2026 levels. Given that Congress is not expected back until November 9 following the midterms, it’s unlikely that any real resolution will come to fruition soon.

INDUSTRY INFLUENCE AND POLITICAL ACCESS

Federal transportation policy has long favored highway expansion over sustainable options such as public transit. Historically, Congress has directed around 80% of federal fuel-tax increases to highway projects. In contrast, transit projects have received just 20% under the so-called “80-20 split.” While members of Congress supportive of transit have pushed to change this equation in favor of transit, the Trump administration has taken the opposite approach. Secretary of Transportation Sean Duffy, who served as a lobbyist prior to taking the position, has proposed eliminating the Mass Transit Account, which receives a dedicated share of the federal fuel tax. Instead, Duffy favors transferring this funding entirely into the Highway Account. 

In office, Duffy has been the subject of controversy for the Department’s alignment with industry priorities, including the airline lobby. Under Duffy, DOT renewed an exemption that lets trucking company Covenant Logistics put learner’s-permit holders who have passed the CDL skills test behind the wheel without a licensed driver in the front passenger seat. The company’s chairman contributed to the congressional campaign of Duffy’s son-in-law just weeks prior. 

While the industry may not have a visible presence in the public eye, groups such as the American Trucking Associations (ATA) wield significant policy influence in D.C. A key member of the “highway lobby,” the ATA has boasted of its “permanent presence in the halls of Congress year-round.” In June, Politico reported that top transportation industry lobbyists were courting Speaker Mike Johnson’s office on highway funding. Transportation analyst Kevin X. Shen noted that the lobby has pushed for increased highway funding while working to shield the industry from paying for the road damage caused by heavy tractor-trailers. Lawmakers attack Amtrak for failing to turn a profit. Yet they rarely ask whether a new highway will pay for itself. Congress has had to spend exorbitant amounts of money to keep the Highway Trust Fund financially solvent since 2008.

III. Conclusion

The Trump administration has viewed transit funding not as a crucial investment in infrastructure, but as a political weapon. During the 2025 government shutdown, the administration announced a pause affecting the Hudson Tunnel and Second Avenue Subway projects, which together had about $18 billion in remaining federal support. It also withheld financial support for Chicago Transit Authority rail projects.

After Iryna Zarutska, a 23-year-old Ukrainian refugee, was fatally stabbed on Charlotte’s light rail system last year, Duffy used the killing to threaten to withhold federal funding. It’s worth noting that the Duffy-era DOT has rolled back measures to promote transportation safety, including through removing speed cameras from the list of “Proven Safety Countermeasures.” And despite the fact that 36,640 people were estimated to have died on roads in 2025, a number that comes out to about 100 a day, neither Duffy nor Trump has threatened to withhold highway funding in response to the national traffic-death toll.

Upon Congress’ return, lawmakers must prioritize the restoration of advance funding before the extension runs out. While clear victories for transit funding in Washington are rare, the 2021 bipartisan infrastructure framework included investments in both transit and rail. Expanding options to reliable transit is crucial for promoting real mobility and easing transportation expenses at a time when Americans are struggling to afford gas.