Earlier this month, the White House released its proposed budget for fiscal year (FY) 2027, outlining the administration’s priorities for federal spending and setting the stage for what is likely to be another contentious appropriations process on Capitol Hill. While the president’s budget is not law and is rarely enacted as proposed congressional appropriations, it serves as a starting point for debate in Congress and offers important signals about the administration’s policy direction.
Across transportation, science, water infrastructure, and environmental programs, the FY 2027 proposal reflects a clear shift away from broad-based federal investment and toward narrower, priority-driven funding—combined with significant reductions in many long-standing programs. Below is a high-level summary of key provisions relevant to ASCE and its members.
Transportation Programs
The budget requests $114.1 billion in total budgetary resources for the Department of Transportation (DOT), a slight increase over FY 2026 enacted levels. Discretionary funding would also rise modestly to $26.8 billion, signaling overall stability in the DOT’s budget, but making notable reallocations across several modes.
For highways, the administration proposes $66.2 billion for the Federal Highway Administration, while eliminating unobligated balances from the National Electric Vehicle Infrastructure (NEVI) Formula Program and the Charging and Fueling Infrastructure Grant Program. It is estimated that canceling these balances would save approximately $4.2 billion. The White House’s proposal would maintain funding for core programs such as INFRA grants ($770 million) and the Bridge Formula Program ($713.7 million).
Aviation funding trends in the opposite direction in FY 2027. The budget requests $22.4 billion for the Federal Aviation Administration (FAA)a notable reduction from FY 2026 enacted levels. While the FAA’s Facilities and Equipment account would remain steady at $4 billion, including $1.5 billion for modernization of air traffic control, other accounts would absorb cuts.
Transit and rail see steeper declines. The proposal requests $16.3 billion for the Federal Transit Administration, down sharply from the enacted level in FY 2026, and just $2.8 billion for the Federal Railroad Administration, compared with over $15 billion enacted in the prior year.
One area of expansion is maritime transportation. The budget proposes $2.6 billion for the Maritime Administration, up from $1.5 billion in FY 2026, and includes a proposal to establish a new Maritime Security Trust Fund to support shipyards, marine highways, and workforce development—though no dedicated revenue source is specified.
Science and Research
For the second consecutive year, the Administration proposes substantial cuts to major federal science agencies, closely mirroring FY 2026 requests that Congress ultimately rejected.
The National Science Foundation (NSF) would see its budget reduced by 55 percent, from roughly $9 billion to $4 billion. Within that reduced total, funding would be concentrated on two administration priorities: artificial intelligence ($655 million) and quantum computing ($231 million). While these investments are sizable relative to the reduced topline, they come at the expense of NSF’s broader portfolio of basic research and support for academic institutions nationwide.
The National Institute of Standards and Technology (NIST) would experience a nearly $1 billion reduction, with the Administration citing concerns about climate-related research and diversity, equity, and inclusion initiatives. The cuts would significantly affect NIST’s resilience, standards, and post-disaster research.
The proposal also cuts $1.6 billion from NOAA, including the elimination of the Office of Oceanic and Atmospheric Research, primarily by targeting climate and environmental research programs. Similarly, NASA’s overall budget would decline by 23 percent, with science funding cut roughly in half, despite continued support for human spaceflight programs.
Taken together, these reductions would reshape the federal research enterprise, prioritize a small number of technologies while scaling back research that supports infrastructure innovation, resilience, and long-term economic growth.
Water Infrastructure and Flood Risk
Perhaps the most dramatic reductions appear in water and environmental programs. The budget proposes a 90 percent cut to the Clean Water and Drinking Water State Revolving Fund (SRF) programs, reducing funding by nearly $2.5 billion. This is in line with the administration’s position that water infrastructure financing should primarily be a state responsibility.
The budget would reduce funding for the Water Infrastructure Finance and Innovation Act (WIFIA) program by $63 million, an 87 percent cut, despite its role in financing large-scale water and wastewater projects. The budget would also reduce funding for the U.S. Army Corps of Engineers by $3.8 billion.
Looking Ahead
It is important to remember that Congress ultimately controls federal spending, and many of these proposals are expected to face strong bipartisan scrutiny, particularly cuts to water infrastructure, transit, and applied research. Still, the FY 2027 budget provides a clear articulation of the Administration’s priorities and sets the stage for negotiations in the coming months.
ASCE will continue to engage with Congress and the administration to advocate for sustained, robust federal investment in infrastructure, research, and resilience. Members can expect ongoing updates as the appropriations process advances and opportunities arise to reinforce the value of engineering-driven solutions at the federal level.