New Transit Bill Authorizes $20 Billion Annually to Boost Bus Service, Mandates Focus on Low-Income Areas

The “Stronger Communities through Better Transit Act” is basically a massive federal investment aimed at getting more buses and trains running, especially where they’re needed most. This bill authorizes $20 billion annually from 2025 through 2028 for a new grant program designed to cover the day-to-day operating costs of public transit—think fuel, maintenance, and driver salaries—not just the big capital projects like new tracks or vehicles.

The Transit Lifeline: More Service, Better Access

The core of this bill is the High Quality Transit Operating Support Program (Section 2). For years, federal funding has mostly been for the ‘shiny new toys’—the buses and trains themselves—leaving local agencies scrambling to find money to actually run them. This new program changes that, providing a crucial funding stream for operations. The money is distributed based on an agency’s past operating costs, but here’s the kicker: the majority of the funds must be spent on projects that benefit “underserved communities” or “areas of persistent poverty.” If you live in a neighborhood where the median income is 80% or less than the area median, or in a county that’s been poor for decades, this bill is specifically targeting you for better service.

What does “better service” mean? It means more frequent buses (shorter wait times), expanded hours, better technology like real-time tracking, and improved safety measures. For the single parent working two jobs who relies on the bus, this could mean the difference between getting home at 11:30 PM versus 1:00 AM, or being able to get to a job interview across town without a two-hour transfer wait. The bill explicitly allows funds to be used to improve access to jobs and essential services, which the Secretary of Transportation will have to define (Section 2, Other Important Details).

The Cost of Entry: Reporting and Maintaining Effort

To get this money, transit agencies have to jump through some serious hoops, which is actually a good thing for riders. Agencies must survey current riders and non-riders in underserved areas about what service improvements they actually need and then publish those results online (Section 2, Conditions for Getting the Money). This moves decision-making away from just the board room and into the community.

However, there’s a big catch for agencies: the Maintenance of Effort rule (Section 2, Keeping the Program Going). Recipients must certify they will maintain their current level of transit spending from all sources combined. If they fail to meet that spending level in a given year—say the local city council cuts the transit budget—their federal grant for the next year gets cut by a whopping one-third. This rule is designed to prevent local governments from simply replacing local funding with federal dollars, but it puts agencies at risk if their local budgets fluctuate.

Rural Areas Get a Big Boost, Too

While much of the focus is on large urban areas, this bill throws a significant bone to rural transit providers. Currently, federal funding for rural operating costs is capped lower, but Section 3 increases the federal share for rural transit operating assistance to 80%. This means that for a small town or county running a limited bus service, the local government’s required contribution drops from perhaps 50% to just 20%. For rural areas struggling to keep a few vans or buses running to connect residents to medical appointments or grocery stores, this 80% federal share is a game-changer that could secure the future of those vital services.