Did the big beautiful bill significantly impact public transit funding?
No. There were a few transportation-related changes in the bill, including the widely expected cutting of some programs and tax credits (summarized below). While this may impact a small number of planned transit projects that were part of broader grant proposals, the legislation did not touch core federal transit funding. Notably, cutting transit funding wasn’t floated at any point as the bill progressed over the last many months, even as Republican leadership looked for ways to fund the President’s tax and immigration priorities.
What transportation programs were changed or cut?
There were a handful of cuts to specific transportation-related programs and tax credits, including:
- Neighborhood Access and Equity Program: as had been anticipated for many months, the bill reclaimed all of the unobligated funding (about $2.4 billion) from this program which was part of the Inflation Reduction Act (IRA), President Biden’s signature legislative achievement on climate. The program was similar (albeit with significantly more funding) to the IIJA’s Reconnecting Communities program. Some of the winning projects included transit initiatives, but those weren’t the centerpiece of this program, and the Administration has made clear its desire to eliminate funding for programs focused on equity.
- Electric vehicles: the bill eliminated a number of tax credits from the IRA aimed at incentivizing the purchase and use of electric vehicles of all sizes, as well as EV charging infrastructure. (The bill, however, did not include a registration fee on EVs included in an early draft). It also cut funding for the Clean Heavy Duty Vehicles Program.
- Bicycle commuter tax benefit: the bill eliminated a commuter tax benefit for those cycling to work. This benefit had already been suspended as of the beginning of 2018 as a result of the Tax Cuts and Jobs Act of 2017.
What other actions has Congress been taking recently on the funding front?
While the Senate and House continue to work on the next surface transportation reauthorization bill (a process we summarized in our last newsletter), Congress is also working on its annual appropriations legislation. The relevant House subcommittee has proposed increasing transit formula funding by $363 million while significantly cutting Capital Investment Grants (CIG) and funding for passenger rail. It’s important to note that this is just one step in the process. The Trump Administration's proposed budget included increased funding for public transit and passenger rail. In the Senate, 60 votes will be required to pass an appropriations bill, which means the approach will have to be bipartisan. (The big beautiful bill, by contrast, required only 50 votes in the Senate because of special rules that apply to budget reconciliation bills).
Any recent news from the Trump Administration?
Secretary Duffy announced nearly $500 million in infrastructure BUILD grants. According to the Department, 77% of the award funding is going to road and bridge projects, with 10% going to transit upgrades. For example, Birmingham, AL, received $25 million to construct a new operations and maintenance facility for the BJCTA’s fixed-route, paratransit, and microtransit fleets.
Secretary Duffy also hosted an event for stakeholders on surface transportation reauthorization and, while public transit did not feature prominently, he spelled out some of the Department's overall priorities, including enhancing safety and accelerating project delivery. The Department summarized the event in a press release, which also includes a link to the video.
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