The bill prevents federal formula and certain grant funds from being used for streetcars — protecting federal budgets from project overruns and redirecting funds to other priorities, but at the cost of reduced local transit options, shifted costs to cities and taxpayers, potential job impacts, and possible setbacks to localized emissions-reduction plans.
State and local governments and taxpayers can no longer use federal STBG, CMAQ, Section 5307, or Section 5309 funds for streetcar procurement, operation, or maintenance, allowing those federal dollars to be redirected to other road or transit priorities.
Federal taxpayers and governments face reduced exposure to cost overruns and long-term operating subsidies tied to streetcar projects that would have used federal grants.
Cities that planned streetcar projects lose access to federal STBG, CMAQ, Section 5307, and Section 5309 funds, making planned projects harder to build or operate and shifting more costs onto local taxpayers and budgets.
Residents in urban communities will likely see fewer transit options and reduced local connectivity and economic development benefits if planned streetcar services are canceled or delayed.
Transit agencies and transportation workers involved with streetcar systems may face operational funding shortfalls, cancellations of planned expansions, and possible job or service cuts.
Based on analysis of 2 sections of legislative text.
Bars use of several federal surface transportation and transit funds for procurement, operation, or maintenance of streetcars.
Introduced June 6, 2025 by Scott Perry · Last progress June 6, 2025
Prohibits use of multiple federal surface transportation and transit grant and formula funds for streetcars. The bill bars apportioned or grant money from being used to buy streetcars or to operate or maintain streetcar systems across several federal programs. The prohibition is added as an explicit override to existing eligibility rules in the Surface Transportation Block Grant program, the Congestion Mitigation and Air Quality program, the Urbanized Area Formula Grants program, and the Fixed Guideway Capital Investment Grant program. The text does not provide new funding, exceptions, or an effective date.