Transit providers could receive operating grants if Congress funds them

The Transportation Department would run a grant program to help eligible providers improve transit service. Providers would need to receive federal urban or rural transit funding under section 5307 or 5311, directly or through another recipient. Congress would still need to provide the money. Projects would need to improve service for people who depend on transit and support increased ridership. The bill would authorize $20 billion a year for fiscal years 2025 through 2028.

Federal grants would generally cover no more than half of project costs. These shares would apply to grants under the proposed transit operating support program. Operating assistance in underserved communities or areas with persistent poverty could receive up to 80% federal funding. Projects funded through the allocation specifically for Tribes would receive 100% federal funding. For projects combining operating costs and other costs, the other funding source’s rules would govern its share.

Grant recipients would certify that they will maintain their support for transit service. The requirement would apply to recipients of the proposed operating grants. Recipients would report their prior and expected current spending on transit operations. The prior-year spending report would exclude this program’s grants and related matching money. Recipients would submit the certification within 30 days after each fiscal year begins.

Federal rural transit operating grants could cover up to 80% of a project’s net operating costs. The limit would apply to operating assistance under the federal rural transit program in section 5311. The Transportation Secretary would determine the project’s net operating costs.