Senate introduces key transit operations bill to fix broken transit funding rules

The U.S. Senate has introduced a bill backed by the Transport Workers Union that would establish a new program within the Federal Transit Administration to support transit operations – a critical step for transit agencies across the country seeking to improve and expand service while facing major budgetary shortfalls.  

The bill, introduced by Sens. Chris Van Hollen (D-Md.) and John Fetterman (D-Pa.) would enable the Federal Transit Administration to support public transportation operating costs in urbanized areas with more than 200,000 people. Outside of emergencies, these funds have been limited to capital projects for the past forty years.  

“Now that the pandemic has passed, transit agencies are prohibited from using federal funds for operations, meaning the government will give an agency money to buy new buses but nothing for hiring an operator to drive it,” TWU International President John Samuelsen said. “That needs to change if the federal government is serious about supporting transit.” 

The bill would provide every transit agency serving an urbanized area annual funding for operations divided proportionally based on the total amount of operating expenses reported to the FTA nationwide. Transit agencies would also have the flexibility to use up to 10 percent of their federal capital project funding for these operational needs. These funds would be eligible for operating costs, along with safety and security projects.  

The Senate bill builds on a TWU-endorsed House bill, H.R. 3744, from Rep. Hank Johnson (D-Ga.). The House bill would authorize $20 billion per year for four years by formula to pay for operations costs for public transit agencies. The additional investments in the Senate and House bills are needed now more than ever as demand for public transit increases and pandemic-era aid dries up.  

“Nearly every transit system in the country is facing substantial service cuts at the same they there is massive demand for more frequent, better public transportation options. This bill builds on the bipartisan infrastructure law, which increased capital spending for public transit by 45 percent without touching transit operating budgets.” Samuelsen said. “Hardworking Transport Workers Union members are getting new equipment with federal dollars, but they can’t be paid with that money. Unless Congress makes a change, agencies are going to have lots of shiny new buses without anyone to operate or maintain them.”