DOT Slashes BUILD Transportation Grants 58 Percent Despite Budget Rise

The Department of Transportation's BUILD grant program — one of the most competitive federal funding sources for local infrastructure projects — took a 58 percent cut in the FY2026 appropriations bill, dropping from $345 million to just $145 million. The reduction came despite DOT's overall budget growing by $4.3 billion to $111.8 billion, raising questions about shifting federal priorities in transportation investment.

A Competitive Program Gets More Competitive

Better Utilizing Investments to Leverage Development (BUILD) grants fund surface transportation projects including roads, bridges, transit, rail, ports, and multimodal facilities. The program has historically been one of the few federal transportation grants accessible to local governments, metropolitan planning organizations, and tribal governments without state-level intermediaries.

With the funding pool cut by more than half, an already competitive program — which typically funds fewer than 15 percent of applications — becomes even harder to win. The FY2026 Notice of Funding Opportunity was published in December 2025, and applications are now under review.

What Else Changed in the DOT Budget

The broader DOT budget tells a more nuanced story. Highway formula programs and transit funding remained stable. The Federal Aviation Administration received increases. But discretionary competitive grants bore the brunt of cuts, with BUILD taking the largest proportional hit.

Meanwhile, the Economic Development Administration created a new $10 million Workforce Training Grants line item and established an $18 million Recompete program allocation — suggesting federal infrastructure investment is shifting toward workforce-adjacent economic development rather than pure capital construction.

How Transportation Grant Seekers Should Adapt

Organizations that relied on BUILD as a primary funding source should diversify. The RAISE (Rebuilding American Infrastructure with Sustainability and Equity) program, INFRA grants, and state-level transportation improvement programs remain available. Rural communities and regional development organizations should also explore the EDA's Economic Adjustment Assistance program, which received a $6.5 million increase to $39.5 million.

For a comprehensive comparison of available transportation and infrastructure grants in FY2026, including application strategies for the reduced BUILD program, visit the Granted blog.