New Transit Bill Offers 80% Federal Funding to Boost Bus Service and Security in Urban Areas

The “Moving Transit Forward Act of 2025” is essentially a new federal checkbook for city and regional transit agencies. Specifically, Section 2 creates a new grant program (Section 5308) under the Department of Transportation designed to tackle two major pain points for commuters: reliability and safety. The biggest takeaway? This bill puts federal money directly toward operating costs—like driver salaries and maintenance—for the first time, covering up to 80% of the cost, provided the money is used to increase or support service quality, frequency, or geographic reach.

The Service Boost: More Buses, Less Waiting

For anyone who relies on public transit, this is where the rubber meets the road. Right now, federal grants often focus on capital projects—buying new buses or building new stations—but rarely fund the day-to-day operations that keep the system running. This new 80% federal match for operating expenses means cities can finally use federal dollars to run buses more frequently, extend routes to underserved neighborhoods, or even add late-night service. For instance, if your city needs to add two extra buses during rush hour to cut down wait times from 20 minutes to 10, the federal government will pick up $8 out of every $10 needed to run those routes.

Crucially, transit agencies can’t just pocket this money and cut their own budgets. To get the grant, they must certify that their local, non-federal spending on operating costs will not drop below what they spent last year. This prevents local governments from using the federal funds as a substitute for their existing commitment, ensuring the money results in an actual increase or support of service levels. The bill also prevents agencies from using this service funding to replace fixed bus routes with contracted third-party, on-demand services, keeping the focus squarely on improving the core public transit network.

Security Takes Center Stage

Beyond service improvements, the bill dedicates funds for security and safety. Agencies can use this new grant money for capital projects or operating costs to increase security, including funding for law enforcement or security personnel. Like the service grants, agencies must certify that their local spending on security won't decrease. This means if you’ve been concerned about safety on your morning commute, this provision could translate into more visible security officers on trains and buses, better lighting at stations, or updated surveillance technology, all without requiring local taxpayers to bear the full cost.

Who Gets the Money and How

The funding is distributed to urbanized areas based on a formula tied to their reported operating expenses from the previous year. Essentially, the larger your current transit system is, the larger your share of this new pot of money will be. While this method is straightforward, it could potentially disadvantage newer or rapidly growing urban areas that have low historical operating costs but a high need for expansion. Additionally, while the 80% federal share is generous, transit agencies still need to secure the remaining 20% local match, which can still be a hurdle for cash-strapped municipalities. Overall, this bill provides a significant, dedicated funding stream aimed directly at improving the daily experience of transit riders—making service more frequent and the ride safer.