New 'No Desire for Streetcars Act' Bans Federal Funding for Streetcar Projects Across Four Major Grant Programs

The aptly named "No Desire for Streetcars Act" is a straight shot across the bow of urban planners who favor streetcars. This bill doesn't just cut funding; it completely eliminates the ability for cities and states to use major federal transportation grants for anything related to streetcars—whether it’s buying a new car, paying the electric bill to run it, or fixing the tracks.

The Federal Funds Firewall

This legislation creates a firewall, specifically blocking streetcar projects from four massive federal funding streams. If you’re a city planning a new transit line, you typically rely on money from the Surface Transportation Block Grant Program (STBG), which is a huge source of flexible funding. Under this bill, that STBG money is now off-limits for streetcars. The same goes for the Congestion Mitigation and Air Quality Improvement Program (CMAQ), which is designed to reduce pollution. Even though streetcars are often pitched as an air quality solution, this bill prohibits using CMAQ funds for them.

Urban Transit and Capital Projects Are Out

For major metropolitan areas, the Urbanized Area Formula Grants (Section 5307) are the bread and butter for local transit operations. This bill explicitly bans using that money for streetcar acquisition, operation, or maintenance. This means existing streetcar systems would have to find entirely new, non-federal sources just to keep the lights on. Finally, and perhaps most significantly for new construction, the Fixed Guideway Capital Investment Grants (Section 5309)—the grants used for major rail and transit expansions—are also sealed off. If a city was banking on federal support to build a new streetcar line, they can now forget about it.

What This Means for Your Commute and Your City

For local transportation agencies and city governments, this bill is a major blow to flexibility. When a city decides that a streetcar is the best fit for a dense urban corridor—perhaps because it attracts development better than a bus or is cheaper than heavy rail—they are now entirely cut off from federal partnership on that specific choice. Imagine a city that already invested local money into planning and preliminary engineering for a streetcar line; this bill pulls the rug out from under their federal matching funds, forcing them to either scrap the project or fund the entire thing locally.

This bill dictates transportation priorities from the top down. It essentially tells local planners: "You can use this federal money for highways, buses, light rail, or bike paths, but absolutely not for streetcars." While some critics argue streetcars are an inefficient use of public funds, this legislation removes the local ability to decide if that investment is worthwhile for their specific community. It's an absolute restriction, overriding any local analysis or existing law that might have otherwise allowed federal funds to flow toward streetcar projects.