What's at Stake: Federal Trail Funding and Ann Arbor's Transportation Future

written by Greg L. Hughes

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The next eight months will determine the future of trail funding in America for the next five years — and Ann Arbor's ability to build transformative infrastructure like the Treeline hangs in the balance.

The Infrastructure Investment and Jobs Act (IIJA), the largest federal investment in trails and active transportation in a generation, expires September 30, 2026.^[1] What comes next depends on decisions being made right now in Washington, decisions that will be directly influenced by the November 2026 elections. Understanding what's at stake requires looking at both what we stand to lose and what communities are achieving when federal funding works as intended.

In late January 2025, the Trump administration's attempt to freeze billions in federal grants — including IIJA funding — was blocked by courts within days.^[2,3] The brief chaos demonstrated a crucial reality: federal trail funding exists at the intersection of policy, politics, and priorities that can shift dramatically with each administration.

Understanding what's at risk requires looking at both what we stand to lose and what communities are achieving when federal funding works as intended.

Joe Louis Greenway Path from Tireman Ave to Joy Rd. (courtesy of City of Detroit)

What IIJA Made Possible

To understand what's at risk, consider what the IIJA has accomplished.

The law authorized $1.2 trillion for transportation and infrastructure spending, with $550 billion in new investments.^[7] For trails specifically, the Transportation Alternatives Program — the nation's largest dedicated source of funding for trail and active transportation — saw a nearly 70% funding increase, jumping from $850 million to an average of $1.44 billion per year.^[8]

This isn't abstract policy. It's real projects in real communities.

Just an hour from Ann Arbor, Detroit's Joe Louis Greenway demonstrates what's possible when federal funding aligns with local vision. The 29-mile greenway will connect 23 Detroit neighborhoods to Dearborn, Hamtramck, and Highland Park.^[9] To date, $211 million has been raised for the project, with significant federal support through multiple IIJA programs.^[10]

In 2024 alone, Detroit received $10.5 million from the Active Transportation Infrastructure Investment Program for construction between Woodward Avenue and Dequindre Street, plus $2 million from the Reconnecting Communities Pilot program for design work.^[11] Earlier that year, the city secured $20.7 million through RAISE grants (Rebuilding American Infrastructure with Sustainability and Equity) to link the greenway to Michigan's Iron Belle Trail.^[12]

"This expansion underscores our unwavering dedication to transforming green spaces and uplifting community well-being," said Leona Medley, Executive Director of the Joe Louis Greenway Partnership.^[13] About 30% of Detroit residents lack access to an automobile — for them, the greenway isn't recreation, it's essential transportation infrastructure.^[14]

Michigan's Transportation Alternatives Program, administered by MDOT and metropolitan planning organizations like SEMCOG (Southeast Michigan Council of Governments), prioritizes regional trail connections and safe routes to school.^[15] Ann Arbor, as part of SEMCOG's region, competes for approximately $10 million in federal TAP funding annually.^[16]

This funding model works: federal dollars leverage local and state investments, creating infrastructure that serves communities for generations.

The Reauthorization Debate

Here's what makes the next eight months critical: IIJA doesn't automatically renew. Congress must pass new legislation — a reauthorization — to fund transportation programs beyond September 2026.^[17]

The debate has already begun. Multiple stakeholders are positioning their priorities, from state departments of transportation to advocacy organizations to industry groups.^[18] Each wants to shape what transportation funding looks like for the next five years.

Some advocate for IIJA funding levels as the new baseline, arguing that the law represented a "much-needed, healthy down payment on our transportation future."^[19] Others point to challenges: inflation has eroded IIJA's purchasing power, construction costs have risen faster than funding, and the Highway Trust Fund faces a projected $40 billion annual shortfall from 2027 to 2031.^{[20, 21]}

The fundamental question is whether trails and active transportation will remain priorities or get squeezed as Congress debates highway funding, transit needs, and other competing demands.

What November Means

The November 2026 elections occur just weeks after IIJA expires. The composition of Congress and the administration's priorities will directly shape reauthorization negotiations.

Will the next Congress view trails as essential infrastructure or optional amenities? Will active transportation funding grow, stagnate, or face cuts? Will programs like Transportation Alternatives survive intact or get absorbed into block grants where they compete with highway projects?

These aren't hypothetical questions. The January freeze attempt showed how quickly funding streams can be threatened when political priorities shift. While that specific freeze was blocked, the underlying tension remains: are trails infrastructure worthy of sustained federal investment, or expendable programs vulnerable to budget cuts and political winds?

What Ann Arbor Needs to Understand

For the Treeline and projects like it, federal funding isn't just helpful — it's often essential. TAP grants, RAISE grants, and other IIJA programs provide the kind of substantial funding that makes transformative infrastructure possible rather than merely aspirational.

Detroit's experience illustrates the model: a clear local vision backed by committed partners, pursuing multiple federal funding streams over time. The Joe Louis Greenway didn't secure one grant and call it done. It built momentum through strategic applications to various programs, each success reinforcing the project's viability and attracting additional investment.

Ann Arbor's non-motorized infrastructure has historically benefited from similar federal support. As the Treeline advances, particularly the Gateway segment, federal programs will likely play a crucial role in bridging funding gaps that local sources alone cannot fill.

Concept rendering of the Gateway segment of the Treeline

But that funding depends on programs that exist only because Congress authorizes them. And Congress will make those decisions in 2026, influenced by the elections occurring just weeks after IIJA expires.

The Path Forward

Understanding the policy landscape doesn't mean passive observation. It means informed advocacy.

As reauthorization debates unfold, communities that can articulate why trails matter — not just for recreation but for transportation, public health, equity, and climate resilience — will shape the conversation. Organizations like the Treeline Conservancy have a role not just in building infrastructure but in demonstrating to policymakers why that infrastructure deserves sustained federal support.

The next eight months represent both vulnerability and opportunity. The freeze attempt revealed how quickly progress can be threatened. But Detroit's success shows what's possible when federal funding works as intended: transformative infrastructure that connects communities, serves essential transportation needs, and demonstrates what we choose to prioritize as a society.

September 2026 approaches. November 2026 follows. The decisions made in those months will determine not just whether Ann Arbor can complete the Treeline, but whether communities across America can continue building the trail infrastructure that an increasing number of residents depend on.

That's what's at stake.

The Treeline Conservancy is working with Ann Arbor City Council on the next phase of development for the Gateway segment. Learn more about supporting this transformative infrastructure project at thetreeline.org/support.