Volume 20 – No. 1 | December 2025

By: Amanda Hampton, CAGTC Communications Manager

The year is winding down, and it has been a whirlwind in Washington, D.C. On January 20, Donald Trump was sworn into his second presidential term, setting the stage for a series of new policy priorities across the federal government. Transportation stakeholders navigated a complex year marked by tariffs, vessel fees, a historic government shutdown, surface transportation reauthorization discussions, and permit reform. As we prepare to ring in the new year, now is the perfect time to examine how these major transportation issues unfolded since January.

Surface Transportation Reauthorization

Lawmakers on the relevant authorizing committees kicked off the 119th Congress with an ambitious hearing schedule to begin outlining their surface transportation reauthorization priorities. Throughout the year, both the House and Senate committees accepted priority suggestions from stakeholders to guide the development of the legislation.

The House Committee on Transportation and Infrastructure set a self-imposed deadline to advance a reauthorization bill by the end of 2025; However, action in the House was delayed due to the government shutdown (more on that below) and is now expected in early 2026. Details on the House’s proposal remain limited, but Chair Graves continues to call for a reauthorization bill that focuses on traditional infrastructure. Congress must negotiate a bill to replace the expiring authorizing legislation by September 30, 2026.

In anticipation of the fast timeline, the Coalition for America’s Gateways and Trade Corridors (CAGTC) finalized its surface transportation reauthorization platform in early 2025. CAGTC’s reauthorization platform calls for a 50 percent increase in funding for programs supporting freight infrastructure and outlines specific opportunities to simplify notices of funding opportunities, streamline funding delivery, and improve transparency throughout the grant making process. CAGTC’s reauthorization platform can be viewed here.

FY26 Appropriations

Both the Senate and House Committees on Appropriations approved their respective fiscal year 2026 (FY26) Transportation, Housing and Urban Development (THUD) appropriations bills – annual legislation enacted to fund the U.S. Department of Transportation (USDOT) – in July. After lawmakers were unable to reach a deal and enact FY26 appropriations by the September 30 deadline due to negotiations over expiring healthcare programs, the government entered a 43-day shutdown – the longest shutdown in U.S. history.

On November 12, President Trump signed legislation ending the shutdown and providing certain federal agencies, including the Departments of Agriculture and Veterans Affairs, with full-year appropriations. USDOT and other federal agencies are operating under a continuing resolution (CR) that extends FY25 funding levels through January 30, 2026. Agencies operating under a CR carry out limited functions and are generally prohibited from initiating new programs or activities. Congress will likely begin the new year with a focus on finalizing the remaining FY26 funding bills.

Tariffs

The fluctuating tariffs that went on to define the year began on President Trump’s first day in office, when he initially expressed interest in imposing tariffs. Over the course of the year, the U.S. imposed several types of tariffs, including reciprocal tariffs that varied by country and separate tariffs on China, Canada, and Mexico due to concerns about drug trafficking.

The U.S. Supreme Court is currently reviewing a case to determine whether President Trump has the authority to issue the reciprocal tariffs and the tariffs to address drug trafficking under the International Emergency Economic Powers Act (IEEPA). The case is receiving expedited consideration by the Supreme Court, which is expected to issue a decision either by the end of the year or early 2026. The tariffs remain in effect while the case moves through the Supreme Court. Various retailers, one of the largest being Costco, recently filed separate legal action to receive reimbursement for the duties paid under the IEEPA tariffs.

Vessel Fees

In April, the United States Trade Representative (USTR) imposed fees on Chinese vessels entering U.S. ports under the Section 301 investigation into China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance. USTR’s action resulted in reciprocal tactics imposed by China. As part of the Section 301 investigation, USTR also finalized a 100 percent duty on ship-to-shore cranes and intermodal chassis from China that were scheduled to take effect in November.

Shortly after the vessel fees took effect in October, President Trump and Chinese President Xi Jinping reached a deal during a trade meeting in South Korea. As part of this deal, both leaders agreed to a one-year pause of the vessel fees, beginning on November 10.

Permit Reform

On day one of his second term, President Trump issued a wide-ranging Executive Order (EO), revoking a 1977 EO that allowed the Council on Environmental Quality (CEQ) to issue binding NEPA regulations. Another key permitting update occurred in May, when the Supreme Court issued a unanimous ruling in the Seven County Infrastructure Coalition v. Eagle County, Colorado, case. The Supreme Court determined that federal agencies must only consider the immediate impacts of a transportation project when conducting an environmental review under NEPA.

In July, USDOT revised its NEPA implementing procedures for the first time since 1985. The Federal Highway Administration, Federal Railroad Administration, and Federal Transit Administration issued joint NEPA regulations that simplified the environmental review and permitting process to accelerate project delivery timelines.

What’s in Store for 2026?

Assuming no surprise twists occur along the way, 2026 is shaping up to begin with continued work on FY26 appropriations and a markup of the House’s surface transportation reauthorization bill, expected early in the new year. And, of course, anything else the year decides to throw our way.

One thing is for certain: you’ll want to be in Washington, D.C. to celebrate 25 years of CAGTC on April 22 and 23. Details coming soon!