Federal bill would fund daily transit operations up to $20B a year

What does this do?

HR 3449 would create a new federal grant program to pay for day-to-day public transit operating costs such as driver salaries, fuel, and maintenance. Current federal transit funding is largely limited to equipment purchases like buses and trains. The bill would also raise the federal share of rural transit operating costs from 50 percent to 80 percent.

Who does it affect?

Riders of city buses, subways, and rural transit services would be most directly affected, particularly those who rely on public transit for work, medical care, groceries, and school. Transit agency employees and local governments would also be affected, as the grants would help agencies maintain or expand their workforce and routes.

Why does it matter?

Transit agencies in low-income, minority, or transit-poor communities would receive priority access to funds, and rider surveys would be required at least every two years. Agencies must maintain their existing local spending levels so federal money supplements rather than displaces current transit budgets.

What does it cost, and who pays?

• Up to $20B authorized per year
• Fed covers up to 50%–80% of costs
• Tribes receive 100% federal funding