Transit Funding Flexibility Act

This bill lets all cities and regions that get federal “urbanized area” transit grants use that money to help pay for running buses, trains, and the facilities and equipment they use—not just for buying new stuff or building projects. It also sets a “maintenance of effort” rule: if a transit agency uses these funds for operating costs, it must promise each year to keep up its own spending effort on those costs. If the U.S. Department of Transportation later finds the agency didn’t keep that effort, the agency’s grant for the next year will be cut by the amount it fell short .

Key points

• Who is affected: Transit agencies in urbanized areas, and the riders who use buses and trains in those places.
• What changes: Grant funds can be used for day-to-day operating costs of equipment and facilities, not just capital expenses. Agencies must submit a yearly certification that they’re maintaining their own spending effort on those operating costs; if they don’t, next year’s grant is reduced accordingly .
• When: The bill sets an annual certification due each fiscal year, starting by the 30th day of the first full fiscal year after an agency first receives these funds.