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Amends provisions in 49 U.S.C. chapter 53: modifies section 5311(g)(2) wording and adds subsection (k) requiring the Secretary, through the Administrator of the Federal Transit Administration, to establish a process for recommending regulatory relief for recipients of assistance under section 5311; and adds a Tribal projects paragraph (12) to section 5339(b) requiring at least 5% of amounts made available under that subsection each fiscal year be distributed to Tribal transit agencies, allows the Secretary to use less than 5% if insufficient eligible applications, and sets the Federal share for eligible projects at up to 100 percent.
Amends subsection (b) and related provisions of 49 U.S.C. 5325 to modify definitions and eligible participants in cooperative procurement and to revise the definition of 'participate' to include purchasing or procuring under cooperative procurement contracts using assistance under chapter 53 for rolling stock, farebox equipment/software/technology, or other eligible equipment; also makes unspecified insertions of terms in paragraph (2) references.
Expands and simplifies how rural and Tribal transit agencies buy buses and related equipment by widening cooperative procurement options, directing the Federal Transit Administration (FTA) to study and recommend procurement streamlining, and reserving a minimum share of competitive grant funds for Tribal transit projects with up to 100% federal funding eligibility. It also creates a dedicated FTA leadership role focused on Tribal transit, and requires joint federal reports on making low- and no-emission transit purchases in rural areas more efficient.
The bill boosts Tribal and rural transit capacity, procurement efficiency, and transparency — improving access to vehicles and clean‑energy options — but shifts funds and authority toward federally guided, consolidated approaches that may increase federal costs, reduce local control, and advantage大型
Tribal communities will get more dedicated funding, leadership, and technical support — including a senior Federal official focused on Tribal transit, a 5% competitive set‑aside for section 5339(b) grants, and eligibility for up to 100% federal project funding — improving mobility and access to services on Tribal lands.
State, local, rural, and small transit agencies will be able to join cooperative procurements and nonprofit consortia to pool purchases of buses, chargers, and related technology, lowering unit prices and transaction costs and expanding access to equipment and standardized contracts.
Federal transit roles and responsibilities are clarified — the law explicitly applies to the Federal Transit Administration and names the FTA Administrator and the Secretary of Transportation as responsible parties — increasing accountability and reducing legal ambiguity for program implementation.
Rural and Tribal transit providers (and students/municipal residents) could gain faster or cheaper access to low‑ and no‑emission buses and chargers if procurement recommendations are adopted, improving local air quality and public health.
Non‑Tribal transit agencies and other competitive applicants will have a smaller share of section 5339(b) competitive funds because at least 5% is directed to Tribal projects, and allowing up to 100% federal funding for Tribal projects could increase federal outlays and pressure budgets.
Centralizing authority with the FTA Administrator and a new senior Tribal transit official, plus encouraging standardized and joint procurements, may reduce local discretion and lead to solutions that don't fit unique local terrain, service patterns, or priorities.
Cooperative procurements and larger pooled contracts may favor well‑resourced cooperatives and larger vendors, reducing opportunities for small local suppliers and risking decisions that prioritize up‑front cost savings over lifecycle costs, maintenance, or interoperability.
New reporting, feedback, and regulatory‑relief processes and the creation/staffing of a senior position will add administrative costs and could delay implementation of recommended changes; statutory or regulatory remedies may take years to produce benefits.
Designates the official short title of the Act as the "Investments in Rural Transit Act."
Defines “Administration” to mean the Federal Transit Administration.
Defines “Administrator” to mean the Administrator of the Federal Transit Administration.
Defines “rural area” by reference to the meaning in 49 U.S.C. §5302.
Defines “Secretary” to mean the Secretary of Transportation.
Direct impacts: Rural communities and Tribal communities will see more options and support for acquiring transit vehicles and technology. Tribal transit agencies gain dedicated leadership attention, a guaranteed minimum share of competitive grant funds, and potential access to full federal funding for eligible projects—improving capacity to purchase vehicles and infrastructure. State and local governments, nonprofit cooperative purchasing organizations, and consortia could participate more easily in joint procurements, likely lowering per-unit costs and administrative burdens when buying rolling stock and related equipment. Transit suppliers and manufacturers may face larger cooperative bids and greater standardization, potentially affecting competition and pricing.
Operational effects: The FTA will take on expanded analysis, reporting, and outreach duties; the Departments of Transportation and Energy must consult stakeholders and report on rural clean-transit procurement options. These new federal responsibilities may require internal resources but are intended to yield longer-term savings and procurement efficiency for grantees. The allowance for up to 100% federal funding for Tribal projects reduces local funding burdens for Tribal recipients and could accelerate project starts.
Potential trade-offs and risks: Designating a Tribal set-aside reduces the pool of funds available to non-Tribal applicants under the same competitive program, which could shift competitive dynamics. Implementation will require clear eligibility rules and outreach to ensure Tribal applicants can access the set-aside; otherwise, the Secretary may reduce the reserved share. Cooperative procurement expansion may require harmonizing specifications and contracting practices across jurisdictions. Overall, the measures are largely administrative and programmatic, with modest controversy but meaningful operational changes for agencies and transit stakeholders.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced March 3, 2026 by Tina Smith · Last progress March 3, 2026
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate