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Creates a new federal grant program that gives large annual funding to public transit agencies to expand and improve operating service with the goal of increasing mobility and cutting pollution. It authorizes $20 billion per year for fiscal years 2025–2028, sets eligibility and reporting rules, defines federal matching shares (with higher shares for certain areas and tribes), and requires the Department of Transportation and FTA to issue regulations and reports. Also raises the maximum federal share a rural operating grant can cover under a separate statute to up to 80 percent of net operating costs as determined by the Secretary of Transportation, increasing federal support for rural transit operations.
Establishes the "High quality transit operating support program" (new 49 U.S.C. 5308) under which the Secretary of Transportation may make grants to eligible recipients to improve mobility and environmental sustainability through public transportation service improvements.
For each fiscal year, allocate funding so that each eligible urbanized area, State, and Indian Tribe receives an apportionment equal to 50 percent of the 3‑year average annual operating costs as reported in the National Transit Database (NTD).
After the 50% apportionments, remaining funds are apportioned pro rata so each eligible urbanized area, State, and Indian Tribe receives an amount equal to its share of total operating costs reported to the NTD over the prior 3 years.
No urbanized area, State, or Indian Tribe may receive in any year more than 80 percent of the average operating costs over the prior 3 years.
Allows grant funds to be used for operating costs of projects that improve service for transit-dependent populations and support ridership, including: decreasing headways; new or expanded service area, hours, or days; improving reliability and travel times (including transit prioritization); IT improvements (e.g., real-time data); projects supporting seamless complete trips (connectivity, signage/wayfinding, fare coordination, multimodal payment); service planning; measuring access to work and essential services; safety and outreach (including to unhoused persons); cleaning and transit environment improvements; and workforce development.
Who is affected and how:
Public transit agencies: Primary recipients. Urban, suburban, and rural transit providers can get new operating funds to expand service, increase frequency, add off-peak or weekend service, and invest in cleaner vehicle operations. Larger urban systems may use funds to scale up service; small operators may receive higher federal shares but face capacity and reporting requirements to access awards.
Transit riders and communities: Riders can benefit from more frequent, longer, or more reliable service and potentially cleaner vehicles and reduced local pollution. Low-income and transit-dependent populations in cities and rural areas may see improved access to jobs, schools, and services.
Tribal governments and Tribal transit services: The bill explicitly allows higher federal cost shares for Tribal recipients, lowering the local funding needed for operations and making it easier for Tribal transit providers to operate or expand service.
State and local governments: May need to provide local match where applicable, plan services, and support compliance with reporting/certification rules; increased federal shares reduce state/local operating burdens in eligible cases but do not eliminate local responsibilities.
Federal agencies (DOT and FTA): Will take on program administration, rulemaking, monitoring, and reporting duties. Rapid rule-writing and program setup will require agency resources and coordination.
Rural transit programs (49 U.S.C. 5311 recipients): Stand to gain through the statutory amendment allowing up to 80% federal coverage of net operating costs; this reduces local matching pressures and can support sustaining or expanding service in low-density areas.
Budget and appropriations: Although the bill authorizes $20 billion per year, Congress must appropriate funds before they can be spent; the authorization represents a sizable potential fiscal commitment and will factor into future budget negotiations.
Potential risks and practical effects:
Adds a new section 5308 (High quality transit operating support program) to chapter 53 of title 49 after section 5307, and amends section 5301(b) to add a new general purpose.
Revises subsection (g)(2) to set the maximum Federal share for operating assistance grants at 80 percent of the net operating costs of the project, as determined by the Secretary.
Expand sections to see detailed analysis
Referred to the House Committee on Transportation and Infrastructure.
Introduced May 15, 2025 by Hank Johnson · Last progress May 15, 2025
Referred to the Subcommittee on Highways and Transit.
Referred to the House Committee on Transportation and Infrastructure.
Introduced in House