# Build America Act Reduces Idaho Transit Funding

The proposed Build America 2025 Act would cut federal surface transportation funding by $16.5 billion compared to the 2021 Infrastructure Investment and Jobs Act, resulting in an estimated 18% reduction for Idaho—the largest percentage cut among U.S. states. This significant funding decrease is expected to heavily impact rural transit systems in Idaho, which rely substantially on federal support. Procurement professionals and contractors serving rural public transit agencies should anticipate tighter budgets and potential reductions in contract opportunities or scope for transit services in Idaho.

- **Why this matters:** Idaho's rural transit providers face the largest federal funding cut nationally, signaling a challenging environment for contractors dependent on these funds.
- Agencies and contractors should evaluate the impact of reduced federal grants on ongoing and future transit projects, adjusting procurement strategies accordingly.
- Organizations involved in rural transit services may need to explore alternative funding sources or cost-saving measures to sustain operations.
- Stakeholders in other states, such as Maine, should also consider how similar funding shifts could affect their transit service goals and procurement plans.

**Jurisdictions:** federal
**Industries:** Transportation
**Topics:** Grants & Funding
**Published:** September 22, 2026

### Government Entities
- Urban Institute

### Key Quotes
> There is nowhere in the state that meets Maine27s goals for transit service.
> — Josh Caldwell, Co-founder, Transportation for Maine

### Sources
- [Idaho may see an 18% drop in federal surface transit funding — the largest estimated cut in the US | Planetizen News](https://www.planetizen.com/news/2026/09/138472-idaho-may-see-18-drop-federal-surface-transit-funding-largest-estimated-cut-us) - Planetizen