IT Investments at Transportation and Housing in the Consolidated Appropriations Act of 2026
Published: February 09, 2026
Federal Market AnalysisBudgetHUDInformation TechnologyPolicy and LegislationDOT
IT funding for DOT and HUD in H.R. 7148.
H.R. 7148 funded the Department of Defense for the rest of FY 2026, but it also funded the Department of Transportation and Housing and Urban Development. Today’s post highlights a few specific areas where Congress authorized these civilian departments to spend discretionary funding on technology goods and services.
Department of Transportation (DOT)
The DOT has been in the news a lot recently when it comes to investment in information technology. Most of the commentary focuses on modernizing the National Airspace System, a task for which Peraton recently won an estimated $12.5B contract to act as the prime integrator for a modernized air traffic control system. The latest funding bill for the remainder of FY 2026, however, also contains several other provisions related to IT investment at the DOT.
Federal Aviation Administration (FAA)
Research, Engineering & Development — $250M
This account funds all R&D activities supporting aviation safety, air traffic modernization, unmanned aircraft systems (UAS) integration, and cybersecurity research. Much of this work is IT-related. There may be some R&D funding that goes to the NAS modernization effort, but parsing that out is not possible given the lack of detail in the document. I have removed $40M from the total that is dedicated to aviation workforce development.
Many of the following programs contain IT programs/investments, especially NextGen/Planning.
- Aviation Safety — $1.8B
- Air Traffic Operations — $10B
- Commercial Space — $41.8M
- Finance/Management — $963M
- NextGen/Planning — $65.8M
Federal Motor Carrier Safety Administration (FMCSA)
Motor Carrier Safety Operations and Programs — $63M
This funding is for IT and information management investment.
Office of the Secretary (OST)
Cybersecurity Initiatives — $60M
Funding is for DOT-wide cybersecurity and IT modernization activities and is made available through September 30, 2027.
Financial Management — $5.0M
Funding is available through September 30, 2027, for DOT financial systems/business process enhancement and modernization.
Housing and Urban Development (HUD)
HUD is another agency funded in the CAA for 2026. The legislation calls out a few IT investment areas at HUD.
IT Fund — $345M
This is the fund that HUD uses for its enterprise-level IT investment. The $345M allotted remains available until September 30, 2028.
Research and Technology — $122.5M
This funding, which is available until September 30, 2027, is for contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, so not all of it is contractor addressable. Altogether, $40M is available for technical assistance, although $5.0M of this is for the Distressed Cities Technical Assistance Program, which awards grants.