Federal bill expands transportation funding to cover carpools, rural commutes

What does this do?

HR 7301 adds an official federal definition of transportation demand management (TDM) to existing law and makes TDM projects eligible for several federal funding programs that previously excluded them. TDM strategies include carpooling, vanpooling, employer transit benefits, flexible work schedules, parking pricing, trip-planning apps, and bike or pedestrian infrastructure. The bill does not create a new program but expands which projects and communities can access existing federal transportation funding.

Who does it affect?

The bill primarily affects commuters, rural residents, employers, and state and local transportation agencies. State transportation departments, local governments, tribal governments, transit agencies, nonprofits, and colleges working on rural transportation are all eligible to receive funds.

Why does it matter?

Rural areas often have fewer transportation options, higher rates of elderly and disabled residents, and households that spend more on transportation than urban counterparts. Expanding eligibility for existing federal programs would change what kinds of projects qualify for funding and which communities can apply.

What does it cost, and who pays?

• $20M/year for rural TDM programs
• $20M/year for small congestion projects
• Projects from $500K to $10M eligible