Stronger Communities through Better Transit

Summary#

This bill creates a new federal program called the "High Quality Transit Operating Support Program" by adding section 5308 to title 49, United States Code. The Department of Transportation would give grants to eligible recipients (recipients or subrecipients under sections 5307 or 5311) to pay operating costs for public transportation service improvements. The bill sets rules for how money is apportioned, what projects qualify, how much of a project the federal government will pay, reporting and survey requirements, and other program details.

Key program rules in the bill include:

  • Allocation: Each urbanized area, State (for 5311 subrecipients), and Indian Tribe would initially receive an amount equal to 50 percent of that recipient's average annual operating costs over the prior 3 years. Remaining funds are distributed in proportion to reported operating costs. No recipient may receive more than 80 percent of their 3-year average in any year.
  • Eligible uses: Grants may fund operating costs for projects that reduce wait times, add or expand service area/hours/days, improve reliability or travel time, add real-time customer information, improve network connectivity and fare/payment coordination, pay for service planning, measure access to jobs and essential services, improve safety and outreach to unhoused persons, enhance cleaning, and support workforce development.
  • Priority: A preponderance (most) of grant funds in a fiscal year must benefit underserved communities or areas of persistent poverty.
  • Federal share: The normal federal share is up to 50 percent. For projects in areas of persistent poverty or underserved communities the federal share may be up to 80 percent. Indian Tribes receiving allocations under the bill get a 100 percent federal share. Up to 25 percent of the required non-federal share may be provided as in-kind contributions from associated capital improvements.
  • Availability and conditions: Apportioned funds can be obligated for 2 years. Recipients must report data to the National Transit Database, run and publish rider and non-rider surveys on a regular schedule, and meet other reporting duties. Recipients must certify they will maintain their prior level of transit funding; failure to maintain effort can reduce next year’s amount by one-third.
  • Administration and study: The Secretary must issue regulations within 1 year and set up a multimodal access measurement tool. The Comptroller General must report on the program’s outcomes after 4 years.
  • Funding: The bill authorizes $20,000,000,000 for each fiscal year 2025 through 2028 for this section. The bill also amends section 5311 to allow rural operating assistance grants to cover up to 80 percent of net operating costs, and adds a general purpose recognizing public transportation’s role in combating climate change.

The bill defines terms such as "areas of persistent poverty" and "underserved community," and includes specific data and survey requirements for urban, tribal, and rural recipients.

What it means for you#

  • Transit agencies: Eligible agencies could receive new operating funds to expand or improve service, but must meet reporting, survey, and maintenance-of-effort requirements and provide non-federal matching funds unless higher federal shares apply.
  • Riders, especially in underserved areas: The bill is designed to support more frequent service, new routes or hours, better reliability, improved customer information, and better access to jobs and essential services in targeted communities.
  • Indian Tribes: Tribes eligible under the bill can receive federal funding that may cover the full cost of projects (100 percent federal share) as specified.
  • State and local governments: Must track and report data, certify maintenance of effort annually, and may need to provide matching funds or document in-kind capital investments.
  • General public/taxpayers: The bill authorizes federal spending but the text does not provide information about offsets or detailed budget scoring.

Expenses#

  • The bill authorizes $20,000,000,000 per fiscal year for each of 2025 through 2028 for the program.
  • Federal share rules in the bill: normally up to 50 percent; up to 80 percent for projects in areas of persistent poverty or underserved communities; 100 percent for certain Indian Tribe allocations. Up to 25 percent of the non-federal share may be provided as in-kind capital improvements.
  • Funds must be obligated within 2 years of apportionment, and unused funds return to the next year's pool.
  • No publicly available information on overall net cost to the federal budget beyond the authorization amounts, or on how the program would be paid for or scored by budget agencies.

Proponents' View#

The bill states it is intended to "enhance mobility and improve environmental sustainability" and to support increased transit ridership. It focuses funding on projects that expand and improve service and on benefiting underserved communities and areas of persistent poverty. Supporters (as reflected in the bill text) emphasize using federal grants to grow or retain transit ridership, improve access to jobs and essential services, and address equity by prioritizing underserved areas and tribes.

Opponents' View#

No publicly available information.