Stronger Communities through Better Transit Act

This bill creates a new federal grant program to help run and improve public transit in cities, rural areas, and Tribal communities. Funding is tied to how much agencies recently spent to operate service, with extra funds split by each area’s share of nationwide operating costs; no one can receive more than 80% of their average operating costs in a year. Eligible uses include shorter waits, more hours and routes, better reliability, real-time rider info, safer and cleaner systems, improved connections and payment options, and workforce training.

Most of each grant must benefit underserved neighborhoods and places facing persistent poverty. The federal government usually pays up to half of a project’s cost, up to 80% in those areas, and 100% for Tribes. Funds can be used for two years; any money not used rolls into the next year’s pool.

• Who is affected: Local transit agencies in urban areas, state-run rural transit providers, and Tribal transit programs.
• What changes:
  • How money is set: about half of recent operating costs, with a yearly cap at 80% of average operating costs; remaining funds are split by each area’s share of total operating costs.
  • Focus on equity: most funds must serve underserved communities and areas of persistent poverty.
  • Cost share: feds cover up to 50% (up to 80% in high-need areas; 100% for Tribes).
  • Accountability: agencies must report key service data and access to jobs and essential services to a national database and regularly survey riders and non-riders in underserved areas; states must track rural areas with little or no service and show progress.
  • Keep local effort: agencies must maintain their own operating support or lose one-third of the next year’s grant; DOT will also build a tool to measure access to jobs and essential services.
• When: Authorizes $20 billion per year for fiscal years 2025–2028.