There are 58 days until Sept. 30, when the Infrastructure Investment and Jobs Act (IIJA) expires. But the road and bridge construction industry shouldn’t worry, yet; Congress might have a backup plan.
With that expiration date approaching, Congress seems likely to rely on a short-term extension of federal surface transportation programs as lawmakers continue negotiations on the next long-term highway bill.
Senate leaders have included a provision in a bipartisan continuing resolution that would extend IIJA surface transportation authorities through Dec. 11, preventing those programs from expiring on Sept. 30.
The Senate is expected to begin considering the package this week, according to a report from Politico. If approved, the House would also need to pass the legislation before it reaches the president's desk.
For the transportation industry, the proposal represents what many observers have expected for months: additional time for Congress to finish work on the BUILD America 250 Act, the legislation intended to replace the IIJA with a new multi-year surface transportation authorization.
The House has made more progress than the Senate. Earlier this year, the House Transportation and Infrastructure Committee overwhelmingly approved its portion of the BUILD America 250 Act. However, several other House committees must still complete their work before the full package can move forward. Meanwhile, the Senate has not yet released legislative text for its version of the reauthorization bill, making completion before the Sept. 30 deadline increasingly unlikely.
The Dec. 11 extension would push negotiations into the post-election lame-duck session, giving lawmakers additional time to reconcile differences and complete a five-year authorization.
However, the Senate proposal does not address every funding issue facing the industry.
While the continuing resolution would extend the IIJA's existing highway and transit authorizations, it would not continue the law's advance appropriations—funding that Congress provided through the Treasury's General Fund for five years under the IIJA. Those advance appropriations expire at the end of fiscal year 2026.
According to Senate Democrats and industry organizations, those dollars currently total roughly $36.8 billion annually for the U.S. Department of Transportation. Without congressional action, those funds would not automatically continue into fiscal year 2027.
That issue has become a major concern across the transportation industry.
According to a report by the American Association of State Highway and Transportation Officials (AASHTO), a coalition of transportation organizations recently urged Congress to ensure that any extension of the IIJA preserves the law's contract authority and advance appropriations. The groups argued that maintaining current funding levels is essential to avoid project disruptions while lawmakers complete a long-term reauthorization.
For state DOTs, contractors, engineering firms and local agencies, the Senate proposal offers short-term certainty but little long-term clarity.
If enacted, the extension would keep federal highway and transit programs operating through Dec. 11 while Congress continues negotiating the BUILD America 250 Act. The industry, however, will continue watching whether lawmakers also preserve the IIJA's advance appropriations, a decision that could significantly affect federal transportation investment heading into fiscal year 2027.
Sources: Politico, Bloomberg Government, AASHTO
