The total federal and state Public Transportation Program funding (rail, intercity bus, public transit and marine/port) for FY 2026-2030 is $3.7 billion. For the intercity bus, public transit and marine/ port programs, funding is estimated at $2.9 billion. Federal funding estimates are based upon FY 2026 funds and programs available in the IIJA, with a small annual increase according to estimates provided by the Federal Transit Administration for funds allocated by formula. The CTF is the primary source of state funding for capital and operating expenses for Public Transportation and includes a 2.4 percent decrease from FY 2025 program levels.
In FY 2026, $13 million in unreserved funds are expected to be appropriated. The CTF for FY 2028 and beyond is estimated at a 2.3 percent increase year over year.
For rail, funding is estimated at approximately $809 million. The BIL provides competitive funding opportunities for passenger services, grade crossings, freight improvements and port projects but no ongoing federal revenue other than for grade crossing safety programs.
The total federal and state Aeronautics Program funding is approximately $900 million. Federal revenue is estimated based on the Federal Aviation Administration (FAA) Reauthorization Act of 2024 that reauthorized funding for FAA and aviation programs through FY 2028, with similar funding levels anticipated for FY 2029 and 2030. This includes the Airport Improvement Program (AIP) that has traditionally provided entitlement and discretionary grant funds to the 94 Michigan airports that are part of the National Plan of Integrated Airport Systems. State revenue comes from the State Aeronautics Fund, which includes revenue from sales and excise taxes on aviation fuel and the Airport Parking Tax (APT). The APT will sunset once the debt service on bonds it supports are repaid in 2032.
