H.R. 5024: Transit Funding Flexibility Act

This bill, known as the Transit Funding Flexibility Act, proposes changes to how urbanized area formula grant funds can be used by public transportation agencies in the United States. It primarily modifies Section 5307 of Title 49 of the United States Code, which governs these funds. Here are the main points of the bill:

Key Changes to Funding Usage

• Removal of Population Requirement: The bill removes the restriction that limits the use of grant funds for agencies in urbanized areas with populations of fewer than 200,000. This means that all eligible agencies, regardless of their size, can utilize these funds without this specific limitation.
• Operating Costs Eligibility: The bill allows grant funds to be used not just for capital costs (like equipment and infrastructure), but also for operating costs associated with public transportation services. This includes the costs of running buses, trains, and maintaining facilities.

Certification Requirements

• The bill introduces new requirements for recipients of the grant funds regarding the maintenance of operating costs. Recipients must certify at the beginning of each fiscal year that they will continue to maintain funding for the operating costs they plan to cover with the grant funds.
• If a recipient does not maintain their contribution to these operating costs, future grant amounts can be reduced by one-third during the next fiscal year.

Regulatory Oversight

• The Secretary of Transportation will oversee compliance of recipients with these new requirements. If they find that a recipient has failed to maintain the required operating cost contributions, they will enforce the aforementioned reduction in future grants.

Implications for Public Transportation Agencies

This bill aims to provide more flexibility for public transportation agencies to address their financial needs, especially in times when operating costs may be a significant burden. By allowing grant funds to support operating expenses, the legislation is intended to assist agencies in maintaining and improving transit services for the public.

Relevant Companies

• SYD - This company may see impacts due to changes in funding received from urban transportation agencies that decide to allocate more funds to operating costs.
• GERA - As a provider of transportation solutions, changes in grant funding usage can affect their contracts and collaborations with public transit agencies.