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Source: Congress.gov

Summary

This meeting of the subcommittee focused on the Department of Transportation's Fiscal Year 2026 budget request and its implications for national transportation infrastructure and safety. Discussions covered critical areas such as aviation safety, grant management, workforce levels, and infrastructure development across various modes, often highlighting areas of both bipartisan agreement and significant policy disagreement. Secretary Duffy, a former member of Congress, detailed the administration's priorities and actions, while committee members expressed both support and concerns regarding budget details and programmatic shifts.

Themes

Department of Transportation FY26 Budget Request

The Department of Transportation is requesting $26.7 billion in discretionary budget authority for Fiscal Year 2026, which includes significant increases for air traffic modernization, port and shipyard infrastructure, freight rail safety, and multimodal freight expansion. Committee members expressed concern about the lack of detail on $1.4 billion in cuts and a proposed $4.1 billion reduction to IIJA FY26 advance appropriations, noting that the overall budget remains largely unknown. Secretary Duffy highlighted that the DOT budget received an increase under President Trump's plan and that the department has already saved taxpayers approximately $9.5 billion by reallocating funds from social justice and climate-related projects and improving efficiencies. [ 00:07:31-00:08:25 ]

[ 00:30:36-00:31:18 ]

Grant Management and Project Efficiency

Secretary Duffy identified a backlog of 3,200 grant awards inherited from the previous administration, many dating back to 2022, which he characterized as stalled by "inaction and inefficiencies." He committed to streamlining the grant tracking process by consolidating information into one dashboard to enhance transparency for grantees and the public. The Secretary also noted that 40% of money spent on projects often goes to consultants and permitting, stressing a desire to allocate more funds directly to construction and delegate more authority to states for quicker, more efficient project execution. [ 00:29:39-00:30:25 ]

Aviation Safety and Air Traffic Control

A primary concern was the state of the nation's air traffic control (ATC) system, with mentions of the recent DCA collision, telecommunications issues at Newark, aging technology, and staffing shortfalls at the FAA. Secretary Duffy outlined efforts to address ATC shortages by hiring more controllers, improving testing and training at the Mike Monroney Aeronautical Center, and offering bonuses to experienced controllers to prevent retirement. He acknowledged that the "skinny budget" might not fully cover the extensive costs of modernizing the entire system, which committee members estimated could require $30 billion. [ 00:11:27-00:12:22 ]

Workforce Reductions and Congressional Authority

The administration's efforts to reduce the federal workforce, including probationary employee dismissals and buyouts, were discussed, with concerns raised about a 12% reduction in DOT staffing since January 2020. Secretary Duffy asserted that critical safety mission positions, such as air traffic controllers, have been protected and that the department aims to "do more with less." Committee members emphasized Congress's "power of the purse" and the need for proper congressional notification for departmental restructuring, grant awards, or program eliminations. [ 00:09:25-00:10:26 ]

[ 00:52:42-00:53:03 ]

Equity and Social Justice in Transportation Funding

A contentious discussion arose regarding the Secretary's decision to pull funds from projects tied to "social justice" and "climate requirements," which he categorized as adding unnecessary costs. Representative Clyburn strongly challenged this, citing historical social injustices in infrastructure development and arguing against labeling such investments as wasteful. Secretary Duffy defended his stance by referencing the Supreme Court's Harvard decision and asserting that these requirements increased costs without directly contributing to safety or project quality.

Rural Transportation and Emerging Technologies

Discussions also covered the unique challenges of rural transportation, including high fatality rates on rural roads and the future of rural airports and the Essential Air Service program. Secretary Duffy indicated a commitment to working with Congress to provide cost-effective service for rural communities and highlighted the potential of technology, such as autonomous vehicles and drones, to enhance safety and efficiency across the transportation network. He also expressed strong concern over the dilapidated condition of the Merchant Marine Academy, advocating for significant investment. [ 00:54:05-00:54:19 ]

Tone of the Meeting

The tone of the meeting was largely serious and concerned, particularly regarding safety issues across all transportation modes. While there was a prevailing spirit of bipartisanship on the shared mission of ensuring a safe and efficient transportation system, several exchanges became contentious, especially concerning budgetary allocations and the redefinition of "social justice" projects. Despite these disagreements, a professional and respectful demeanor was generally maintained, underscored by heartfelt condolences and shared commitment to the family of a pilot lost in a recent aviation accident. [ 00:14:19-00:14:41 ]

Participants

Transcript

Good morning.  The subcommittee will come to order.   Today we welcome testimony from the Honorable Sean Duffy, Secretary of the Department of Transportation on the Fiscal 26 Budget.  Thank you, Secretary Duffy, for appearing before us today.  It's always good to see you.  For those who don't know, Sean and I were classmates together back in 2010, and I'd like to think that we'd surprise ourselves in knowing we'd be in these seats some 15 years later.  But here we are.   The Department of Transportation is requesting $26.7 billion in discretionary budget authority for fiscal 26.  This request includes a $1.2 billion increase for air traffic modernization and operations, $596 million to ramp up our port and shipyard infrastructure, a $400 million boost for freight rail safety, and $770 million for multimodal freight expansion.   While the skinny budget request demonstrates your commitment to making some critical investments to modernize our transportation systems, there's still much about this request that remains unknown as we await the full fiscal 26 budget.  We do not know your total of $1.4 billion in cuts at DOT to afford these programmatic increases at the $26.7 billion top line level.   We're also lacking detail in what the proposed $4.1 billion reduction to the IIJA FY26 advance appropriations.  We'd like to get more from you on that today.  I'd be remiss not to mention that the skinny budget reveals a top line for the Department of Housing and Urban Development that will be challenging for this subcommittee to say the least.   Given the jurisdiction of the subcommittee, we cannot look at the DOT budget request in a vacuum.
We'll have to make some tough choices when reviewing the proposed investments of the Department of Transportation while maintaining necessary support for housing our nation's most vulnerable.  I'd also like to make sure we address a bit of an elephant in the room.   The administration has undertaken efforts to seriously overhaul the federal bureaucracy while also taking a hard look at where our taxpayer dollars are being spent.  It's a valued effort that our House majority supports.  I want to make something clear.  Efforts to restructure the Department of Transportation without congressional approval, to not execute programs appropriated by this committee, or to not give proper congressional notification when awarding or amending grants concerns me.   Article 1 of the Constitution is clear.  It gives Congress, through this committee, the power of the purse.  I know that you, as a former member of this body, understand this.  We want to have a partnership with you to ensure we're providing DOT with necessary resources.  It's a reciprocal relationship.  We provide what you need.  You get us what we need.  Maintaining open lines of communication between this committee and your staff is essential for us to execute   on our shared mission of maintaining our world-class transportation system.  Safety will remain a top priority for this subcommittee as we prepare the 26th bill.  I know you share this goal, as your second night on the job was the horrific DCA collision.  You've taken swift action to ensure the safety of our airspace, and I know the NTSB appreciates your partnership as they continue their investigation into that accident and many others.   Additionally, our nation's air traffic control system is showing signs of age.  The telecommunications issues that have been plaguing Newark and routinely interrupting operations over the past month are unacceptable, and the fact that they were allowed to get to this point over the past several years is beyond frustrating.