Maximizing Transportation Efficiency Act
- Bill Number
- S. 3694
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2026-01-27: Read twice and referred to the Committee on Environment and Public Works.
- Last Updated
- 2026-02-20T15:38:28Z
AI-Generated Summary
Purpose of the Legislation
The Maximizing Transportation Efficiency Act aims to promote transportation demand management (TDM) strategies—methods to encourage smarter use of existing transportation systems—to improve efficiency, reduce traffic congestion, enhance air quality, and increase access to jobs and services, particularly in rural areas where options like public transit are limited.
Key Provisions
- Definition of TDM: Expands the legal definition of TDM in federal transportation law (23 U.S.C. § 101(a)) to include a wide range of strategies, such as incentives for alternative travel (e.g., points or challenges to encourage carpooling), pricing for parking or tolls, employer benefits for commuting, telecommuting support, marketing campaigns, and promotion of walking, biking, or micromobility (small-scale options like e-scooters).
- Integration into Federal Funding Programs:
- Adds TDM projects as eligible under the Congestion Mitigation and Air Quality Improvement Program (23 U.S.C. § 149).
- Includes TDM in the National Infrastructure Project Assistance (49 U.S.C. § 6701), Local and Regional Project Assistance (49 U.S.C. § 6702), and the Strengthening Mobility and Revolutionizing Transportation (SMART) Grant Program from the 2021 Infrastructure Investment and Jobs Act.
- Rural TDM Set-Aside (23 U.S.C. § 173): Reserves $20 million annually from rural transportation funds for grants to develop and implement TDM in rural areas. Eligible activities include creating plans, outreach campaigns, data analysis, innovative programs (e.g., vanpooling, carpooling apps, real-time travel info, or employer incentives), public-private tech partnerships, and operational costs like staff salaries. Eligible recipients include state transportation departments, local governments, Tribal governments, transit agencies, nonprofits, and universities focused on rural transport. Unused funds support other rural projects.
- Congestion Relief Program Updates (23 U.S.C. § 129): Removes population size limits (previously over 1 million) for certain grants, allowing smaller urban and rural areas to qualify. Adds a $20 million annual set-aside for "small projects" costing $500,000 to $10 million. Unused funds go to other program projects.
Significant Changes to Existing Law
- Broadens TDM Definition: Inserts a detailed new paragraph in 23 U.S.C. § 101(a), shifting TDM from a narrow concept to one encompassing modern tools like apps, gamification, and hybrid work policies, while explicitly including rural-friendly options like carpooling.
- Expands Funding Eligibility: Amends multiple sections of Titles 23 and 49 of the U.S. Code, and the Infrastructure Investment and Jobs Act, to make TDM strategies a direct use for federal grants, previously more focused on building new infrastructure.
- Introduces Set-Asides: Creates dedicated $20 million annual pots for rural TDM and small congestion relief projects, with provisions to reallocate unused funds, promoting targeted spending without overhauling overall budgets.
- Removes Barriers: Eliminates population thresholds in the Congestion Relief Program, making it accessible to more communities.
Potential Impacts
- Government Agencies: The U.S. Department of Transportation (DOT) and state agencies will need to prioritize TDM in grant reviews and rural planning, potentially increasing administrative work for data collection and partnerships but using funds more cost-effectively (e.g., reducing the $74 billion annual congestion cost noted in findings).
- Citizens: Rural residents, especially elderly, disabled, low-income, or car-less individuals, gain better access to healthcare, jobs, and services through options like vanpools or ride-matching. Urban and suburban users benefit from reduced congestion and incentives for alternatives to solo driving, lowering household transport costs (rural families spend more per the findings).
- International Relations: No direct impacts; the bill focuses on domestic transportation efficiency.
Main Stakeholders Affected
- Rural Communities and Residents: Primary beneficiaries through improved mobility and reduced isolation.
- State and Local Governments: Including departments of transportation and metropolitan planning organizations, which can apply for grants to implement programs.
- Tribal Governments and Transit Agencies: Eligible for rural funding to address unique access challenges.
- Nonprofits and Universities: Can lead planning and commuter programs.
- Employers and Businesses: Encouraged to offer commuting benefits, potentially reducing employee transport costs.
- General Taxpayers: Benefit from efficient use of federal funds, avoiding new infrastructure builds.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal support for TDM under existing highway and infrastructure laws without new mandates, ensuring compliance with environmental goals (e.g., air quality under the Clean Air Act) by tying it to congestion relief. The set-asides create enforceable funding floors but allow flexibility via reallocation clauses.
- Constitutional: Aligns with the federal spending power (Article I, Section 8) to promote interstate commerce and general welfare, particularly equity for underserved rural and Tribal areas, without infringing on state authority (grants are voluntary).
- Political: Highlights rural-urban disparities (e.g., higher poverty and vehicle dependence in rural areas), appealing to bipartisan interests in cost savings and community strengthening. Could influence future transport policy by prioritizing behavioral and tech-based solutions over large-scale construction, potentially facing pushback from road-building lobbies but support from environmental and equity advocates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Blunt Rochester, Lisa [D-DE]
Recent Actions
- 2026-01-27: Read twice and referred to the Committee on Environment and Public Works.
- 2026-01-27: Introduced in Senate
Bill Versions
- Maximizing Transportation Efficiency Act — issued 2026-01-27 — PDF (13 pages)