PolicyBrief
H.R. 8835
119th CongressMay 14th 2026
Streamlined Apportionment, Flexibility, and Efficiency Transit Act
IN COMMITTEE

This Act streamlines federal transit law by expediting fund apportionment, extending bus grant availability, easing asset disposition rules, and simplifying environmental, historic preservation, and reporting requirements for transit agencies.

Hillary Scholten
D

Hillary Scholten

Representative

MI-3

LEGISLATION

New Transit Bill Cuts Red Tape for Local Bus Systems: 5-Year Spending Windows and Faster Funding for Smaller Cities

The Streamlined Apportionment, Flexibility, and Efficiency (SAFE) Transit Act aims to overhaul the bureaucratic plumbing of public transportation. By shifting the deadline for federal fund distribution to December 1 for states and cities with under a million residents, the bill ensures that local transit departments aren't left guessing about their budgets deep into the fiscal year. This change provides the financial predictability needed to plan routes and hire drivers without waiting on Washington's paperwork.

More Time to Get the Wheels Turning

Under current rules, if a city gets a federal grant for new buses, they often have a 'use it or lose it' window of three years. Section 2 of the bill extends this to five years. For a transit manager in a mid-sized town, this is a game-changer. It means if a supply chain delay hits or a local construction project gets pushed back, the city doesn't have to forfeit millions in federal support just because the calendar flipped. It allows for smarter, long-term planning rather than rushed spending to meet an arbitrary deadline.

Reinvesting in the Fleet

One of the most practical shifts involves how cities handle old equipment. Currently, when an agency sells an old bus or a piece of land bought with federal help, they often have to send a cut of that cash back to the federal government. This bill changes the math: under the amended Section 5334, local agencies can keep 100% of those proceeds as long as they certify the money is going right back into new capital projects. It’s essentially a trade-in program that keeps local tax dollars and assets working for the local community instead of disappearing back into the federal treasury.

Cutting the Paperwork Jungle

The bill also takes a hatchet to the 'documentation fatigue' that slows down infrastructure. It directs the Secretary of Transportation to minimize the studies and memos required for 'categorical exclusions'—projects that are already known to have minimal environmental impact. Additionally, the FTA’s 'triennial reviews' (the big audits that happen every three years) will stop trying to check every single box for every agency. Instead, the bill mandates a focused approach that targets known problem areas and uses random sampling for the rest. While this speeds up the process for well-run agencies, the challenge will be ensuring that the 'random sampling' doesn't miss rare but serious safety or financial lapses in the pursuit of efficiency.