A Comprehensive Overview of the Federal Public Transportation Program
The document “Federal Public Transportation Program: In Brief” by the Congressional Research Service offers an insightful overview of the federal funding assistance provided to public transportation agencies in the United States. This funding is primarily administered through the Department of Transportation’s Federal Transit Administration (FTA). The federal public transportation program, authorized from FY2022 through FY2026 as part of the Infrastructure Investment and Jobs Act (IIJA), represents a notable increase in federal funding compared to previous authorizations, aiming to enhance the nation’s public transit systems significantly.
Public transportation, also known as public transit or mass transit, encompasses a variety of services including buses, heavy rail (subways and elevated trains), commuter rail, light rail, paratransit, and ferryboats. Defined under federal law (49 U.S.C. §5302), public transportation services are regular, continuing shared-ride surface transportation services open to the general public or specific segments of the public defined by age, disability, or low income. Excluded from this definition are services such as intercity passenger rail, intercity bus service, charter bus service, school bus service, sightseeing services, courtesy shuttle services for specific establishments, and intra-terminal or intra-facility shuttle services.
The IIJA provides an average of $21.4 billion annually from FY2022 through FY2026 for public transportation, a significant increase compared to the $12.8 billion annually authorized by the previous Fixing America’s Surface Transportation (FAST) Act. This increase is attributed to both the mass transit account of the Highway Trust Fund and a multiyear advance appropriation from the general fund of the U.S. Treasury. These funds support various aspects of public transit, including capital projects, operational expenses, safety oversight, planning, and research.
The distribution of federal funds is primarily through formula grants, which allocate money based on factors such as population size, population density, and the number of low-income individuals in urbanized areas. For larger urbanized areas (populations of 200,000 or more), additional factors such as bus revenue vehicle miles, passenger miles, and operating costs are considered. Smaller urbanized areas and rural areas also receive funding distributed by state governments based on similar criteria.
Key programs funded under the IIJA include the Urbanized Area Formula Program, which supports public transportation in urban areas, and the State of Good Repair (SGR) Program, which focuses on repairing and upgrading rail transit systems and other fixed-guideway systems. The Capital Investment Grants (CIG) Program provides competitive funding for constructing new rail, bus rapid transit, and ferry systems, as well as expanding existing systems. The Low or No Emission Vehicle Program, another competitive grant initiative, promotes the acquisition of buses that emit low levels of pollutants and the development of supporting facilities.
The Bus and Bus Facilities Program provides capital funding for purchasing and rehabilitating buses and constructing bus-related facilities. The Rural Area Formula Program supports public transportation in rural areas, including capital, operating, and planning expenses. Additionally, the Enhanced Mobility of Seniors and Individuals with Disabilities Program offers specialized transportation services for these population groups.
The IIJA also introduces several new competitive grant programs, such as the Station Accessibility Program, which funds improvements to make older rail transit stations more accessible to disabled individuals. The Rail Vehicle Replacement Grants, part of the SGR Program, focus on replacing outdated transit rail vehicles. The Rural Ferry Service Program supports scheduled ferry services between rural areas, and the Electric or Low-Emitting Ferry Pilot Program funds the purchase and modification of ferries to reduce emissions.
Funding for these programs comes from both the Highway Trust Fund and the general fund of the U.S. Treasury, with a notable increase in general fund contributions under the IIJA. The appropriations acts for FY2018 through FY2021 increased the general fund share overall, and the IIJA continues this trend with an average general fund share of 35% for the period FY2022-FY2026.
In addition to the main FTA programs, federal funding for public transportation can also be sourced from several surface transportation programs that allow federal highway money to be spent on public transit projects, as well as from non-transportation federal programs in areas such as health, education, and veterans affairs. The Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grants program has been another significant source of funding for public transportation projects.
Overall, the Federal Public Transportation Program under the IIJA represents a comprehensive and substantial effort to enhance the nation’s public transportation infrastructure. The focus is on modernization, sustainability, and accessibility, supported by significant financial contributions from federal sources to improve the quality and efficiency of public transit services across the United States.