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Federal budget · FY2024

Where does federal transportation spending go?

$137 billionin FY2024 · 2.0% of all federal spending

Transportation covers all the major federal modes — highways, aviation, transit, rail, maritime — and totals about $137 billion in FY2024. The biggest single piece is the Federal-Aid Highway Program (~$50B), which distributes Highway Trust Fund dollars to state DOTs by formula. The states then award the actual construction contracts.

Other major pieces: the Federal Aviation Administration (~$20B) runs air traffic control and aviation safety; the Federal Transit Administration (~$20B) sends grants to local transit agencies (MTA in NYC, LA Metro, WMATA in DC, CTA in Chicago, MBTA in Boston); the Coast Guard (~$14B) handles maritime law enforcement and search & rescue; and the Federal Railroad Administration (~$8B) subsidizes Amtrak operations and corridor improvements.

On the federal contractor side, Raytheon/RTX is the FAA's biggest tech vendor (radar, NextGen automation), Leidos and Lockheed Martin do FAA and Coast Guard IT, Bollinger Shipyards builds Coast Guard cutters, and engineering firms like HNTB, AECOM, and Jacobs do federally-funded design work on highway, transit, and rail projects nationwide.

Where the money goes inside transportation

Agency- and program-level breakdown for FY2024.

  • Federal Highway Administration$50 billion

    Highway Trust Fund-financed federal-aid to states for interstates and major roads.

  • Federal Aviation Administration$20 billion

    Air traffic control, airport grants, aviation safety regulation.

  • Federal Transit Administration$20 billion

    Grants to local transit agencies (buses, subways, light rail).

  • Coast Guard$14 billion

    Maritime law enforcement, search & rescue, port security, drug interdiction.

  • Federal Railroad Administration & Amtrak$8 billion

    Amtrak subsidies, rail safety regulation, corridor improvements.

  • NHTSA + auto/truck safety$1.5 billion

    Vehicle safety standards, crash testing, fuel economy rules.

  • Other transportation (Maritime, pipeline safety, BTS)$23.5 billion

    Maritime Administration, pipeline & hazmat safety, transportation statistics.

Top recipients — who actually got the money

Largest contractors, grantees, and direct payees within transportation. The remainder covers personnel, facilities, and the long tail of smaller recipients.

  • State DOTs (Federal-Aid Highway Trust Fund)$45 billion

    Federal Highway Trust Fund distributes by formula to all 50 states — California (~$5B), Texas (~$4B), Florida (~$3B), New York (~$3B), Pennsylvania, Illinois. States then award the actual construction contracts.

  • Local transit agencies (FTA grants)$18 billion

    Direct federal grants to MTA (NYC), LA Metro, WMATA (DC), CTA (Chicago), MBTA (Boston), SEPTA, and ~1,000 smaller systems for buses, rail, and capital projects.

  • Amtrak (National Railroad Passenger Corp)$4.5 billion

    Direct federal subsidy — operating support plus Bipartisan Infrastructure Law capital for Northeast Corridor modernization and national network expansion.

  • Raytheon / RTX (FAA NextGen)$1.5 billion

    Air traffic control radar, ERAM en-route automation, NextGen modernization. FAA's largest single tech vendor.

  • Leidos (FAA + Coast Guard IT)$1.2 billion

    FAA flight services automation, en-route systems, Coast Guard IT modernization, navigation infrastructure.

  • Bollinger Shipyards + Eastern Shipbuilding$1 billion

    Coast Guard cutters — Offshore Patrol Cutter (Bollinger took over from Eastern in 2024), Fast Response Cutter, Polar Security Cutter.

  • HNTB + AECOM + Jacobs (engineering firms)$1.5 billion

    Major engineering consultants serving as primes and major subs on federally-funded highway, transit, rail, and aviation projects nationwide.

  • Lockheed Martin (FAA + Coast Guard)$700 million

    FAA flight services automation (FS21), Coast Guard C4ISR, surveillance radars, marine domain awareness systems.

  • L3Harris (avionics + radios)$500 million

    FAA voice/radio infrastructure, Coast Guard communications, marine navigation aids and beacons.

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