Budget 2026: Significant investment supporting the resilience of our transport network

• €4.74 billion funding allocation to the Department of Transport for 2026, an increase of €824 million over 2025
• €1.31 billion allocation for current spending including road, public transport, aviation, maritime and Coast Guard services
• More than 40% increase in the allocation for operation of State-subsidised Public Service Obligation public transport services
• Progression of key public transport projects including BusConnects, DART+, MetroLink and Cork Area Commuter Rail
• Strengthening and consolidation of the road network to build connectivity and resilience
• A 20% increase in funding to support the electrification of the private car fleet, including an additional €10 million for electric vehicle charging infrastructure, extending high-powered charging capability to rural areas

Minister for Transport, Darragh O’Brien, Minister of State with responsibility for International and Road Transport, Logistics, Rail and Ports, Seán Canney, and Minister of State with responsibility for Rural Transport, Jerry Buttimer, have welcomed the overall Exchequer allocation of €4.74 billion next year for the Department of Transport. This represents €3.43 billion of capital funding and €1.31 billion of current funding. This is an increase of €824 million on Budget 2025.

This funding will deliver a sustainable, accessible, and safe transport network across Ireland. The allocation spans public transport, roads, road safety, civil aviation, maritime services, active travel, and the Irish Coast Guard. It will also contribute to digital improvements that will make access to motor tax services and National Driver and Vehicle File information more efficient.

The 2026 PSO funding allocation of €940m, provides an unprecedented 43% uplift in the core PSO allocation from 2025. This will further support subsidised bus and rail services across Ireland, while maintaining targeted fares - including initiatives such as the recently introduced free travel for all children up to the age of 9, and the Young Adult Card for those aged 19 – 25, as part of the NTA's National Fares Strategy.

PSO services are funded and supported by the Exchequer to ensure accessibility and connectivity across the country. They support social cohesion and are particularly important to those living in rural areas, and all who rely on public transport in their daily lives. The increase in the core allocation provides a secure basis to ensure the ongoing delivery of public transport services, maintaining connections and ensuring accessible transport for communities across Ireland.

For public transport infrastructure, Budget 2026 provides funding for MetroLink to progress towards procurement and construction. This follows the decision by An Coimisiún Pleanála, published last week, to grant approval for the MetroLink Railway Order, setting the stage for a truly transformational national project.

Bus network development will be supported with the continued funding of bus electrification nationally and the construction of two new BusConnects Core Bus Corridors in Dublin. For rail, the DART+ Programme will see the arrival of new DART trains for testing, the construction of charging infrastructure in Drogheda, and advancement of procurement for DART+ West and South West following recent approvals from An Coimisiún Pleanála. The implementation of the All-Island Strategic Rail Review, including the Western Rail Corridor, will be a key priority in the NDP Sectoral Plan.

The budget will also support continuation of Phase 1 of the Cork Area Commuter Rail Programme, involving double tracking from Glounthaune to Midleton and re-signalling of the track, along with other works such as the upgrade of Galway Ceannt train station.
The commitment to invest in dedicated infrastructure for walking and cycling continues, with nearly €1 million invested each day. Greenway and ‘Safe Routes to Schools’ projects will ensure that sustainable, active travel becomes embedded as part of our everyday lives.

The safety of all road users is a government priority and continues to be supported through improvements in infrastructure and services. An increase of €211 million brings the allocation for national and regional and local road networks and road safety measures to €1.72 billion. Provision of €20m will be available for the continued roll out of safer speed limits on our road network. This allows for protection and renewal of the Irish road system overall, and for grant support to local authorities for a range of targeted programmes. This will ensure a stronger and more robust road network across the country. National road projects including the M50 Traffic Control and Management upgrade in Dublin, N5 Ballaghaderreen to Scramoge works in Roscommon, N21/69 Limerick to Foynes works in Limerick and M28 Cork to Ringaskiddy will continue to develop.

Strategic regional and local road improvement projects provided for in the National Development Plan (NDP) will also continue, including the Tralee Northern Relief Road, Coonagh to Knockalisheen Distributor Road and Eastern Garavogue Bridge and approach roads.

Budget 2026 also continues funding to key road safety agencies such as the Medical Bureau of Road Safety (MBRS). As in 2025, the Road Safety Authority will ringfence funding of €18 million for awareness, education and promotional campaigns. This will ensure a continued focus on campaigns that make our roads safer for all road users. The MBRS will also receive continued Exchequer funding for the vital road safety services they provide, including testing thousands of blood and alcohol samples for intoxicants.

Recognising the critical importance of the EV transition in delivering transport decarbonisation and building on the momentum achieved to date, baseline capital funding for Zero Emission Vehicles Ireland’s programme will increase by at least 20% next year. This will support EV uptake and charging infrastructure roll-out, including almost €10 million in funding towards the final phase of the Light Duty Vehicle (LDV) initiative, which aims to ensure that drivers of zero emission vehicles are never more than 30km from a high-powered charging point. This will extend high-quality EV charging to rural and regional areas, supporting local economies, tourism, and regional development. The extension of €5k VRT relief for Battery EVs and the creation of a new preferential BIK category for BEVs by Paschal Donohoe, the Minister for Finance, are both important tax related measures supporting this EV transition.

Regional development is further supported with the €39.6 million aviation allocation to support regional airports - ensuring direct air access is provided to and from the regions - as well as supporting ongoing regulatory and policy functions in civil aviation.

The transformation of the Irish Coast Guard continues, with the transition of the Search and Rescue aviation service contract due for completion in February 2026. Budget allocation of €162.5 million for the Coast Guard and wider maritime sector ensures the continued provision of a world-class response to search and rescue, pollution, and marine casualties.

Budget 2026 also enables:

Strong road networks, better road safety, and support for low-emission vehicles

• Continued maintenance and repair of national, regional, and local roads to ensure safety and resilience
• Funding local authorities with grants for targeted works including resealing and strengthening road surfaces; bridge repair; climate adaptation and safety measures; and drainage
• Continuing major road projects including the M50 Traffic Control and Management upgrade in Dublin, N5 Ballaghaderreen to Scramoge works in Roscommon, M28 Cork to Ringaskiddy and N21/69 Limerick to Foynes works (including Adare bypass) in Limerick
• Continued implementation of strategic improvement schemes under the NDP, including Tralee Northern Relief Road, and Coonagh to Knockalisheen Distributor Road
• Support for the Road Safety Authority and funding for the Medical Bureau of Road Safety
• Funding for 90 new EV recharging hubs and 192 new fast (100kW+) recharging points across Ireland’s national primary and secondary roads

Expansive and innovative bus and rail networks

• Continuing to advance the MetroLink programme into planning and construction phases
• Progressing the DART+ Programme with arrival and testing of the new DART fleet, and advancement of procurement for DART+ West and South West
• Protection and enhancement of bus and rail services and infrastructure to improve accessibility and reliability.
• Advancement of Cork Area Commuter Rail Programme Phase 1, involving double tracking from Glounthaune to Midleton and re-signalling.
• Continued funding for electrification of the public service obligation (PSO) bus fleet.
• Construction of two BusConnects Core Bus Corridors in Dublin.

Healthy and sustainable active travel

• Promoting active travel with €362.6 million for walking and cycling infrastructure projects across all local authorities, including Greenway sections and Safe Routes to School projects

Aviation and regional airports

• Continued capital investment and operational support for safety, security and sustainability operations will be provided to eligible regional airports through the new Regional Airports Programme 2026 to 2030, which will be published in the coming months
• Continued funding for twice daily two-way PSO air services between Donegal and Dublin airports
• Supporting Ireland’s participation in international aviation bodies such as the International Civil Aviation Organization and Eurocontrol

Life-saving Coast Guard Services

• Funding and supporting the Irish Coast Guard service to continue to protect communities and save lives through search and rescue, ship casualty and pollution response
• A reliable and effective search and rescue aviation service, with six rescue helicopters and two fixed-wing airplanes

Regulation of Maritime Transport

• Regulation of maritime transport safety, security, and working conditions for Irish and foreign vessels, as well as ship source pollution
• Continued support for the Commissioners of Irish Lights and marine casualty investigation