Transit Funding Flexibility Act

Bill Number

H.R. 5024

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Transportation and Public Works

Status

Introduced

Latest Action

2025-08-23: Referred to the Subcommittee on Highways and Transit.

Last Updated

2026-02-11T09:06:31Z

AI-Generated Summary

Purpose

The Transit Funding Flexibility Act (H.R. 5024) aims to increase flexibility for public transportation funding by allowing recipients of urbanized area formula grants to use these federal funds for operating costs—such as maintenance and daily expenses—of equipment and facilities. This expands access beyond smaller urban areas, promoting more efficient use of resources for public transit systems nationwide.

Key Provisions

• Expanded Use of Funds: Removes population-based restrictions, enabling any recipient in an urbanized area (regardless of size) to apply grant funds toward operating costs for public transportation equipment and facilities.
• Certification Requirement: Recipients must submit an annual certification to the Secretary of Transportation, starting in the first full fiscal year after receiving funds, confirming they will "maintain effort"—meaning they will not reduce their own spending on these operating costs compared to prior levels.
• Enforcement and Penalties: The Secretary of Transportation can review, audit, and evaluate compliance. If a recipient fails to maintain effort in a given fiscal year, their funding under this program will be reduced by one-third in the following fiscal year.

Significant Changes to Existing Law

• Amends Section 5307 of Title 49, United States Code (which governs urbanized area formula grants under the Federal Transit Administration).
• Eliminates the prior limit allowing operating cost funding only for urbanized areas with populations under 200,000 (as defined by the U.S. Census Bureau).
• Strikes outdated paragraphs restricting fund use and adds new accountability measures (certification and penalties) not previously required for all recipients.
• These changes broaden the scope of allowable expenses while introducing safeguards to prevent recipients from simply replacing local funding with federal dollars.

Potential Impacts

• On Government Agencies: The U.S. Department of Transportation (specifically the Federal Transit Administration) will gain oversight responsibilities for certifications and audits, potentially increasing administrative workload but ensuring fiscal responsibility.
• On Citizens: Urban residents, particularly in larger cities, may benefit from sustained or improved public transit services, as agencies can now use federal funds to cover operating expenses, potentially reducing fare increases or service cuts.
• On International Relations: No direct impacts, as this is a domestic transportation funding measure.
• Overall, it could enhance transit reliability and accessibility, supporting economic mobility in urban areas without significantly altering federal budgets.

Main Stakeholders Affected

• Public Transportation Agencies: Primary recipients (e.g., local transit authorities in cities like New York or Los Angeles) gain funding flexibility but face new certification and penalty requirements.
• U.S. Department of Transportation: Responsible for administering grants, reviewing certifications, and enforcing penalties.
• Urban Residents and Commuters: Indirect beneficiaries through potentially better-funded and maintained transit systems.
• Local Governments: May see reduced pressure on their budgets for transit operations, though they must maintain their own spending levels to comply.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens accountability in federal grant programs by mandating certifications and audits, aligning with broader federal efforts to prevent misuse of funds (e.g., similar to "maintenance of effort" rules in other aid programs). No challenges to enforceability are evident.
• Constitutional: Does not raise significant issues, as it involves congressional authority over interstate commerce and spending (under Article I, Section 8), with funds tied to compliance conditions.
• Political: Represents a bipartisan push (introduced by representatives from both parties) to support urban infrastructure without expanding overall spending, potentially appealing to pro-transit lawmakers while including penalties to address concerns about fiscal waste. It could influence future transportation reauthorization bills by setting a precedent for flexible yet accountable funding.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Lawler, Michael [R-NY-17]

Cosponsors (9)

Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Malliotakis, Nicole [R-NY-11], Rep. Bacon, Don [R-NE-2], Rep. Garbarino, Andrew R. [R-NY-2], Rep. LaLota, Nick [R-NY-1], Rep. Miller, Max L. [R-OH-7], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Mackenzie, Ryan [R-PA-7]

Recent Actions

• 2025-08-23: Referred to the Subcommittee on Highways and Transit.
• 2025-08-22: Referred to the House Committee on Transportation and Infrastructure.
• 2025-08-22: Introduced in House
• 2025-08-22: Introduced in House

Bill Versions

• Transit Funding Flexibility Act — issued 2025-08-22 — PDF (3 pages)