From the American Public Transportation Association
October 1, 2025
Government Shutdown Impacts on Public Transportation
Congress and President Trump did not reach a bipartisan, bicameral agreement to enact a continuing appropriations act, or Continuing Resolution (CR), and a government shutdown began today, October 1.
The impacts of a government shutdown on U.S. Department of Transportation (DOT) agencies vary considerably. Federal Transit Administration (FTA) operations will continue and none of its 517 employees will be furloughed. FTA will be able to reimburse transit agencies for previously approved projects. However, it is unlikely that FTA will be able to approve new grants.
Conversely, 239 employees (23 percent) of the Federal Railroad Administration (FRA) are furloughed during the government shutdown. Remaining FRA personnel are focused primarily on activities necessary to protect life and property (e.g., FRA safety inspections).
Background
Congress did not complete appropriations action prior to October 1, 2025. The Antideficiency Act (31 U.S.C. §§ 1341-1342, 1511-1519) generally bars the obligation or expenditure of Federal funds in the absence of appropriations. As a result, Congress must enact a CR to provide interim budget authority and prevent a government shutdown. When a funding gap occurs, Federal agencies are generally required to shut down affected projects and activities, which includes the prompt furlough of non-excepted personnel.
The impacts of a government shutdown on DOT agencies vary considerably. Agencies are allowed to continue activities involving the safety of human life or the protection of property. For instance, FRA safety inspectors and other personnel necessary to protect life and property continue to work during the government shutdown. In addition, the personnel of some agencies, such as FTA and the Federal Highway Administration, are financed by budget resources other than annual appropriations (e.g., the Highway Trust Fund). Therefore, these employees are not furloughed during a government shutdown.
Federal Transit Administration
According to DOT, during the government shutdown, FTA operations will continue because the personnel are financed by the Highway Trust Fund or advance appropriations under the Infrastructure Investment and Jobs Act (IIJA). Therefore, none of FTA’s 517 employees are furloughed.
The impact on FTA activities is less clear. FTA has sufficient liquidating cash to support several months of reimbursements for previously approved projects. In addition, activities funded by IIJA advance appropriations will continue during a lapse in annual appropriations. However, it is unlikely that FTA will be able to approve new grants during the shutdown. To the extent that FTA activities involve other agencies, the personnel of those agencies (e.g., Environmental Protection Agency, U.S. Department of Labor, U.S. Department of the Interior) may be furloughed, which could stop progress on projects.
Federal Railroad Administration
According to DOT, 239 (23 percent) of FRA’s 1,023 employees are furloughed during the government shutdown. Remaining FRA personnel are focused primarily on activities necessary to protect life and property. For instance, FRA staff that manage rail accident/incident investigations continue working. The continuous inspector presence on railroad property allows for the proactive review and identification of unsafe operations. When safety hazards are identified, FRA railroad safety personnel ensure uniform and consistent feedback to railroads on noncompliance violations of Federal safety laws and regulations. These activities continue during a lapse in appropriations. Employees of the Office of Railroad Development also continue working during a lapse in appropriations on activities funded under FRA’s Oversight account related to the award, administration, oversight, and technical assistance of FRA programs.
FRA will not continue any of its unfunded core agency functions. No contracts, purchase orders, or other documents obligating funds will be executed. FRA will not advance any rulemakings, including those related to railroad safety, unless such activity is related to FRA’s financial assistance programs and funded from FRA’s Oversight account.