Transit is a crucial element of the nation's total infrastructure investment. In fact, AGC believes highway and transit construction offsets weakness in private construction segments.
That's why the association is pushing Congress to finish its work on renewing the surface transportation bill before its September expiration. But many states aren't waiting on federal funds and instead are moving forward with transit projects that will have regional benefits.
These investments "have helped support construction activity, job growth and stronger economic performance," said Jeffrey D. Shoaf, CEO of AGC. "Our new polling shows voters overwhelmingly recognize those benefits and want to see a new bill before the current law expires."
AGC believes construction funding supports state projects, improves travel times, strengthens supply chains and supports construction employment.
The association said funding put in place would provide greater certainty for contractors and sustain public infrastructure investment.
"Highway construction is one of the strongest segments of the construction market," said Ken Simonson, AGC chief economist.
"Infrastructure investment is offsetting weakness in several private segments," he added, noting that spending totaled $2.210 trillion in May.
That figure is 0.1 percent above the revised April rate but 1.5 percent below the May 2025 level.
AGC reports that public construction spending increased 0.5 percent in May and was 0.3 percent higher than one year earlier.
Highway and street construction, which comprise the largest public category, increased 0.6 percent from April and 2.9 percent over the past year.
That segment supports economic growth through improved movement of people and freight and demand for construction materials and equipment.
Though the new BUILD Act allots less money to transit funding nationwide, Congress can support transit programs through other means.
The nonprofit Urban.org believes programs such as Capital Investment Grants can ensure transit agencies are able to plan for projects into the future.
"These cuts could deeply affect communities across the country," wrote Yonah Freemark, Amanda Hermans, Tomi Rajninger and Gabe Samuels.
"Public transportation offers families an affordable alternative to driving," yet most U.S. cities lag behind other countries in service availability and affordability.
Writing for urban.org, the four noted that rural areas in particular rely on federal support to provide transit services. That's why many states are creating their own funding vehicles for not only highway but transit infrastructure improvements.
Strengthening Transit Infrastructure at State Level
In July, Gov. Gavin Newsom announced nearly $2.5 billion has been earmarked for transportation projects across California. The goal is to enhance connectivity for people who walk and bike and rebuilding vital routes to increase access for transit users.
"These investments will support local streets and roads, state highways, public transit and intercity rail projects while creating more than 150,000 jobs," he said.
More than 150 projects will improve highway systems, advance public transit and create good-paying jobs, Newsom said in announcing the funding.
According to Newsom these investments are guided by his Build More, Faster — For All agenda.
"We are ushering in the golden age of transportation," said Newsom. "Investments like these drive our economy while creating good-paying jobs across the state."
Southwest Los Angeles County mobility hubs, at $257 million, will improve connectivity for pedestrians, bicyclists, transit riders and highway commuters. This includes thousands of residents and global visitors traveling to attend major cultural and sporting events, the governor's announcement noted.
In New Jersey, the state's transit board voted in July to raise spending by 11 percent over last year's budget, according to an article on newjerseymonitor.com.
Nikita Biryukov reported that "after facing financial headwinds," the board approved $3.5 billion in spending for the fiscal year that began July 1.
The largest operating budget in the agency's history, it comes after 12 months that saw collections tumble and labor spending surge beyond expectations.
"This governor is the only governor in recent memory who has given us an 11 percent increase in budget," said Kris Kolluri, NJ Transit CEO. "I don't know when the last time that happened. That is how you begin to put the pieces together for this agency to make sure we do it."
Biryukov noted that the agency's fiscal 2027 budget maintains funding for buses, trains and light rail cars across the state for years.
State subsidies are expected to account for a majority of the agency's revenue in the current fiscal year.
NJ Transit paid nearly $103 million more for labor than it expected last year, wrote Biryukov. Spending on fringe benefits came in $70.5 million above budget and the agency faces a range of cost increases that outpace the rate of inflation.
"The costs are real," said Kolluri. "I know people don't want to understand or care because they are frustrated sometimes when their train is canceled."
He understands, she said, "but the fact that the labor contracts cost $55 million more than they did last year is a fact."
Chicago RTA awarded $10.9 million in access to transit program funding to improve connections for people who walk, ride or roll to transit services.
According to Brandon Lewis writing for masstransitmag.com, the Chicago Regional Transportation Authority will fund 21 new projects.
The Access to Transit program, funding municipalities' construction of small-scale transit capital improvement projects, is the largest in agency history.
The new projects will be the eighth group accepted to the program, reported Lewis. The program has funded 50 projects since its beginning in 2014.
The Northern Illinois Transit Authority (NITA) Act will provide an estimated $1.2 billion in new annual operating funding.
The RTA board approved an amendment that allocates funding to short-term, rider-focused improvements including the Access to Transit program.
The village of Hillside is improving access to transit with safe and ADA-compliant travel options for pedestrians and bicyclists, noted Lewis. Improvements include adding on-street bike lanes and route wayfinding in both directions.
The Metra commuter rail system is requesting funding to enhance facilities at the Evanston Central Street, Mokena and Clarendon Hills stations.
Evanston Central and Mokena will receive a new warming shelter and modern signage, while Clarendon Hills will be brought into full ADA compliance.
The city of Waukegan will improve pedestrian safety and accessibility at its transit hub served by both commuter rail and bus. Improvements will include a mid-block crossing with flashing pedestrian signage to better access the main bus stop. High-visibility crosswalks, realignment of the pedestrian path to the Metra station and pedestrian-visibility features also are planned.
In Seattle, Wash., this summer the Sound Transit board authorized two contracts to get the West Seattle Link Extension up and moving.
A massive $341 million contract with Jacobs Engineering is expected to move the project to final design stage, according to theurbanist.org. It comes as Sound Transit has received its first permit approvals from the city of Seattle.
A contract for continued project management on the West Seattle and Ballard Link projects was awarded to Mott MacDonald and Connect Seattle Partners.
West Seattle's transit budget increased by $406.8 million, while Ballard Link's budget was increased by $16.3 million.
"These are among the first steps we're taking following the adoption of our updated plan," said Dave Somers, Sound Transit board chair. "They demonstrate our commitment to maintaining momentum, delivering on our original ST3 vision. We're moving forward with urgency."
This spring, bus and light rail service for Pittsburgh, Pa., got a cash infusion from VisitPittsburgh in anticipation of the NFL Draft weekend.
Adam Babetski of the Pittsburgh Post-Gazette reported that the cash infusion would cover transit operating costs. The upgrades were the latest phase of what the tourism organization calls a "multimodal transportation strategy."
Jerad Bechar, VisitPittsburgh president, said the group would create park-and-ride services for the draft site with new temporary bus routes.
Pittsburgh Regional Transit (PRT) was to expand light rail service to make it easier for fans traveling from Downtown or the South Hills, he said.
Regional transportation funding has been earmarked for several transit projects in the Richmond, Va., area, according to richmondbizsense.com.
The Greater Richmond Transit Co. (GRTC) plans a new downtown transfer hub and extend rapid service under a larger allocation for multiple projects.
The Central Virginia Transportation Authority (CVTA) awarded $10 million for the proposed transfer station, a nexus for GRTC bus routes across the region.
The transit lines would converge at the station for riders to transfer in a central place. It replaces a temporary transfer point operating across the street.
The Pitch: More, Even Bigger, Benefits of Transit
Transit agencies must remind policy makers of the connect between public transportation and public health, argues the Transportation Research Board (TRB).
StreetsBlogUSA reported that a TRB-prepared study calls for agencies to do a better job of conveying that message. TRB identified seven healthy outcomes linked to public transit, including physical activity, cleaner air, fewer crashes and expanding social networks.
In Boston, a health assessment identified the negative consequences service cuts would have on community health and economic well-being.
A study showed bus service saved a New Mexico county more than $600,000 yearly in reduced hypertension and connections to preventive care.
And two studies in Portland, Ore., found people living near transit have lower health-care costs.
Transportation and transit investments "are about more than infrastructure," said Clarissa Falcon, California transportation commission chair.
"They are investments in people, communities and opportunity," Falcon said of Gov. Newsom's transit construction funding package.
The funds "will help ensure our transportation system continues to serve the needs of communities … today while preparing for the challenges of tomorrow."
