PolicyBrief
H.R. 7301
119th CongressJan 30th 2026
Maximizing Transportation Efficiency Act
IN COMMITTEE

This bill establishes grant programs and funding set-asides to promote transportation demand management strategies, particularly in rural areas, and expands eligibility for existing congestion relief funding.

Marilyn Strickland
D

Marilyn Strickland

Representative

WA-10

LEGISLATION

Rural Commute Revolution: New $125 Million Grant Program Targets Carpools and Telework for Small Towns

If you live in a rural area, you know the drill: if your car breaks down, your life stops. The Maximizing Transportation Efficiency Act is a $125 million push to change that reality by bringing 'Transportation Demand Management' (TDM) to the countryside. Over the next five years (2026-2030), the bill sets aside $25 million annually to fund projects that move people more efficiently without requiring everyone to own a private tank. It’s not just about building more lanes; it’s about smarter ways to use the roads we already have.

Beyond the Solo Drive

This bill officially defines TDM as a toolkit to maximize road efficiency. For you, that means federal cash could soon flow into local vanpool programs, subsidies for carpooling, or better apps to match riders with drivers in areas where Uber doesn't go. Section 2 specifically allows nonprofits and local governments to grab up to $2,000,000 per grant to set up things like 'smart rural transportation hubs' or even financial incentives for people who stop driving solo. Imagine a local factory worker being able to hop on a reliable, subsidized vanpool instead of stressing over gas prices and car maintenance on a 40-mile commute.

Flexibility for Small Towns

One of the biggest wins here is the 'Small Project' set-aside in Section 5. Currently, a lot of federal congestion money is locked away for massive cities with over a million people. This bill scraps those population limits and carves out $20 million a year specifically for projects costing between $500,000 and $10 million. This is a game-changer for mid-sized towns that have real traffic headaches but aren't 'big' enough for traditional federal help. It means your local council could actually get funding for a new bike path or a synchronized traffic light system without competing against New York or Chicago.

The Telework and Tech Connection

The legislation doesn't just look at asphalt; it looks at your home office too. Under Section 3, promoting telework and flexible schedules becomes an eligible expense for federal grants. It also opens the door for 'Mobility-as-a-Service' platforms—basically, one-stop-shop apps where you could plan a trip using a mix of a local shuttle, a carpool, and a bike-share. While the bill is heavy on tech and 'incentives,' the real-world test will be whether rural counties have the staff to manage these complex programs. To help, the bill allows up to 5% of funds to cover administrative costs, acknowledging that these programs don't just run themselves.