Sponsors (2)
The bill expands and funds fare-free and equity-focused public transit—reducing costs and improving access for low‑income and underserved riders—while imposing substantial federal and local costs and creating risks of funding gaps, administrative strain, and eligibility exclusions.
State and local governments and transit providers receive sustained federal funding (authorized $5 billion annually FY2026–2030 and broader investment authority) to support transit operations, equity efforts, and fare-free pilots.
Low-income and transit-dependent riders gain fare-free access, lowering daily travel costs and increasing mobility for people who rely on transit.
Communities (especially underserved urban and rural areas) see improved service, redesigned bus networks, and better connectivity, increasing access to jobs, education, and services for people without cars.
Taxpayers face substantially higher federal spending (roughly $25 billion authorized over five years plus associated local costs), increasing the federal budget footprint or requiring offsets.
Communities and transit agencies risk long-term operational funding gaps when federal grants (and temporary fare revenue replacements) expire after the five-year window, threatening service continuity.
Local governments may need to raise taxes or reallocate budgets to cover expanded fare‑free service and increased operating costs, straining local finances and competing priorities.
Based on analysis of 4 sections of legislative text.
Creates competitive grants to fund fare-free public transit and transit improvements, authorizing $5B per year for FY2026–2030.
Official title: Direct the Secretary of Transportation to carry out a grant program to support efforts to provide fare-free transit service, and for other purposes.
Introduced July 28, 2025 by Edward John Markey · Last progress July 28, 2025
Provides competitive federal grants to states, counties, municipalities, transit agencies, and qualifying nonprofits to make public transit fare-free and to expand and improve transit access, with priority for rural and urbanized areas and underserved communities. Grants cover lost fare revenue and related operating needs, require detailed local plans and equity metrics, and authorize $5 billion per year for FY2026–2030.