Legislative Update

Final FY 2006 Transit Funding Set at $8.5 Billion: A New High for Transit

January 5, 2006

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Shortly before adjourning for 2005 on December 22, both Houses of Congress passed the Fiscal Year (FY) 2006 Department of Defense Appropriations Act (H.R. 2863). As the last appropriations bill of the year, the bill became the legislative vehicle for a number of issues unrelated to defense spending. The bill included a 1% across-the-board cut of FY 2006 funding for all discretionary programs, including regular Department of Defense funding, but excluding programs of the Department of Veterans Affairs. President Bush signed the bill into law on December 30, thus enacting the 1% cut, which is technically a rescission of previously appropriated FY 2006 funds. The federal transit program, like highway and other discretionary spending programs, is subject to the cut, and consequently the federal transit program is funded at $8.504.5 billion in FY 2006. The cut will be applied proportionately to each program, account, item, project, activity and earmark. Funding programs within the Department of Homeland Security, including rail and transit security grants, will also be subject to the 1% across-the-board reduction.

FTA Releases FY 2006 Apportionments and Allocations

The Federal Transit Administration (FTA) published its Fiscal Year 2006 Apportionments and Allocations Notice in the Federal Register on December 20. The notice does not reflect the 1% across-the-board cut of discretionary spending that was enacted December 30 as part of the FY 2006 Defense Appropriations bill, but FTA is expected to release an updated notice reflecting the 1% cut soon. In the meantime, the December 20 notice is available at:

http://www.fta.dot.gov/grant_programs/2930_17945_ENG_HTML.htm

FEMA to Maintain Lead Role in Hurricane Relief for Transit

The FY 2006 Defense Appropriations bill also included a third round of federal hurricane relief spending, providing $29 billion in new and reallocated funds to a variety of agencies for relief efforts, but the bill does not provide funding to the Federal Transit Administration. Instead, the Federal Emergency Management Agency will continue to distribute aid to affected transit providers as they work to reestablish service. Since Hurricane Katrina devastated New Orleans and the Gulf Coast region last year, APTA has worked with public transportation providers, including New Orleans' Regional Transit Authority, Baton Rouge's Capital Area Transit System and Mississippi's Coast Transit Authority to help secure federal assistance for their recovery efforts.

For more information, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com.

Budget Reconciliation Bill Mandates Coordination - Drops Amtrak Authorization

The budget reconciliation bill to address mandatory spending programs, the Deficit Reduction Act of 2005 (S. 1932), includes several provisions of interest to transit. Before Congress adjourned, the Senate passed the conference report for the bill by a 51-50 vote. The conference agreement as amended by the Senate has not passed the House. In order to be enacted, the House will need to approve the amended conference report when it reconvenes.

The bill includes a provision that would make non-emergency transportation a required benefit in the federal Medicaid program. Transportation is a major activity under Medicaid, estimated at $2 billion annually. Pressure to cut Medicaid spending has put administrative costs at risk. By defining non-emergency medical transportation in statute as a "medical option", the standing of transportation within state administered Medicaid programs is enhanced and protected.

On November 3, the Senate's Amtrak authorization bill (The Passenger Rail Investment and Improvement Act of 2005, S. 1516) was attached as an amendment to the Senate's original version of the budget reconciliation bill, the Deficit Reduction Omnibus Reconciliation Act of 2005 (S. 1932). Despite strong Senate support for Amtrak reauthorization as demonstrated by a 93-6 vote in favor of the amendment, the House-Senate conference committee for budget reconciliation dropped the Amtrak portion of the bill during the final week of the legislative session, delaying any further action on Amtrak reauthorization until Congress reconvenes in 2006.

Labor-HHS Appropriations Bill Addresses Coordination

Separately, the FY 2006 Labor, Health and Human Services, Education appropriations Act (H.R. 3010) which was passed by Congress during the last week of the session and signed into law December 30, includes a provision that delays the effective date of restrictive transportation regulatory requirements under the federal Head Start program. This will give Congress the opportunity to address this issue in the reauthorization of the Head Start program.

For more information on Coordination or Amtrak issues, please contact Art Guzzetti of APTA's Government Affairs Department at (202) 496-4814 or email aguzzetti@apta.com.

2006 Session of Congress to Begin January 18

Congress adjourned sine die, the final adjournment of the 2005 session, on December 22 and will conduct only limited business until mid-January. The Senate's Judiciary committee will hold hearings starting January 9 on the pending nomination of Samuel Alito to the U.S. Supreme Court, but the Senate is otherwise adjourned until Wednesday, January 18. The House is scheduled to reconvene on Tuesday, January 31, and its committees plan no hearings until after that date.

2006 APTA Legislative Conference, March 5-7, Washington, D.C.

As Congress gets back to business, APTA's 31st Annual Legislative Conference is one of the best opportunities for public transportation advocates to make the case for transit investment. Attendees can take advantage of workshops on key legislative issues, participate in APTA's advocacy efforts, network with industry colleagues, and enjoy exciting social events. Industry involvement and visits to Capitol Hill are an important part of making the promise of SAFETEA-LU a reality. APTA's legislative agenda in 2006 includes implementation activities related to SAFETEA-LU, transit security, transit funding in the new budget and appropriations process, and transportation coordination.

For more information and to register, please visit: http://www.apta.com/conferences_calendar/legconf/index.cfm

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