U.S. Department of Transportation Submits Surface Transportation Authorization Proposals

 

U.S. Department of Transportation Submits
Surface Transportation Authorization Proposals

DOT Proposes to Eliminate All Guaranteed Funding for Public Transit and Passenger Rail

On July 22, Secretary of Transportation Sean P. Duffy sent a letter to Senate Committee leaders outlining the U.S. Department of Transportation’s (DOT) proposals for the Surface Transportation Authorization Act or related Surface Transportation Authorization Extension Act.

APTA strongly opposes DOT’s proposals to eliminate all guaranteed funding for public transit and passenger rail by eliminating the Mass Transit Account of the Highway Trust Fund and advance appropriations. These proposals jeopardize more than 85 percent of Federal public transit and passenger rail investment across the nation, including all public transit formula grants. On July 23, APTA issued a statement urging Congress to reject these funding proposals and build upon current public transit and passenger rail investment in the next Surface Transportation Authorization Act.  

We strongly encourage APTA members to make their voices heard on these and other critical issues. We urge all APTA members to invite your Members of Congress to Site Visits during the August recess to allow lawmakers to see firsthand the impact of Federal public transportation investments and connect policy decisions to their local constituents. To assist with your planning, please use APTA’s Guidance for Planning Site Visits and Events with your Members of Congress.

Public Transit and Passenger Rail Investments

APTA strongly opposes DOT’s proposals to eliminate all guaranteed funding for public transit and passenger rail by eliminating the Mass Transit Account of the Highway Trust Fund and advance appropriations. These proposals jeopardize more than 85 percent of Federal public transit and passenger rail investment across the nation. 

By eliminating both the Mass Transit Account and advance appropriations, DOT would strip all guaranteed funding from transit formula grants, including urban, rural, bus, state of good repair, and seniors and individuals with disabilities grants. DOT would also eliminate guaranteed funding for other important safety and infrastructure initiatives, such as competitive grants to eliminate highway-rail grade crossings, purchase buses, and construct bus facilities. These proposals would have an outsized impact on rural and smaller communities that rely more heavily on Federal funding for both capital and operating needs.

Eliminates the Mass Transit Account of the Highway Trust Fund 

The Highway Trust Fund, comprised of the Highway Account and the Mass Transit Account (MTA), is primarily financed by an 18.3 cent per gallon gasoline tax and 24.3 cent per gallon diesel tax. The MTA receives 2.86 cents of the gasoline and diesel taxes. President Ronald Reagan signed the law establishing the MTA in 1982. Over the past 43 years, Congress has dedicated 20 percent of all fuel tax increases to public transit investment.

DOT proposes to eliminate the Mass Transit Account and dedicate all gas tax revenue to the Highway Account. APTA strongly opposes this proposal. 

Eliminates Advance Appropriations

DOT proposes to eliminate advance appropriations in the Surface Transportation Authorization Act or Extension Act. APTA strongly opposes this proposal. Eliminating advance appropriations will result in a 20 percent cut for public transit investment. Passenger rail would lose all guaranteed funding. These cuts could devastate public transit agencies, passenger railroads, and the 3,000 private-sector businesses that design, engineer, and construct public transportation systems and facilities; manufacture buses and railcars; and provide critical public transportation services.

To prevent funding disruptions that delay projects, inject uncertainty into State and local investment decisions, and hurt the national economy, APTA urges Congress to continue advance appropriations as part of the Surface Transportation Authorization Act or Extension Act, using any appropriate legislative vehicle.

Expands Private-Sector Investment

DOT proposes to replenish Private Activity Bond (PAB) authority, with conforming eligibility with the Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF) programs, except for transit-oriented development and airports.

In addition, DOT proposes to authorize an additional $1 billion in Federal-State Partnership for Intercity Passenger Rail (FSP) Grant Program funding for New York Penn Station design and construction and include a provision to permit Amtrak to enter into agreements requiring payments in lieu of taxes. DOT also proposes to increase the RRIF cap from $35 billion to $50 billion and direct Amtrak to rename New York Penn Station.

Public Transit and Passenger Rail Safety

Conditioning Public Transit Funds on Improvements in Crime on
Transit Authority Premises 

DOT proposes to provide the Federal Transit Administration (FTA) with authority to withhold all Federal formula funds if an agency fails to demonstrate progress in reducing crime (e.g., passenger assaults, worker assaults) and fare evasion. DOT also proposes a mandatory set-aside for safety and crime prevention.

Enacting Railway Safety Act 

DOT proposes that the Railway Safety Act be included in the Surface Transportation Authorization Act or Extension Act. The Railway Safety Act includes new safety measures for Class I freight railroads that operate high-hazard trains in response to the February 3, 2023 Norfolk Southern freight train derailment in East Palestine, Ohio. It includes a requirement that Class I railroads submit risk-based defect detection system plans to the Federal Railroad Administration (FRA). The Railway Safety Act directs FRA to establish a formula grant program to assist commuter railroads that are required by contract with a Class I railroad to install new defect detectors. However, it does not authorize or appropriate specific funding for this purpose.

Enacting Dalilah’s Law to Improve Trucking Safety

DOT proposes to restrict the issuance of non-domiciled commercial driver’s licenses (CDLs) to individuals with approved employer-sponsored visas, and to require that all CDL knowledge and skills test by administer in English.

Autonomous Vehicle Innovation

The DOT request includes proposals related to the deployment of autonomous vehicles (AV).

Establishes an AV Pilot Program with Preemption Clarity 

DOT proposes a voluntary pilot program allowing manufacturers to deploy AVs, including noncompliant vehicles, under structured Federal oversight and preemptive authority. This approach would create a unified Federal framework to consolidate deployments under one set of rules instead of the patchwork of State-level regulations and various programs.

Requires Rulemaking to Facilitate Self-Certification of Purpose-Built Vehicles 

DOT proposes a new Federal Motor Vehicle Safety Standard (FMVSS) framework, specifically for vehicles built for autonomous use and that would never be operated by a human driver.

Establishes FMVSS for Automated Driving System Safety and Competence

DOT proposes that the National Highway Traffic Safety Administration (NHTSA) promulgate FMVSS establishing minimum safety and performance requirements for automated driving systems (ADS).

Program Consolidation

DOT proposes the consolidation of numerous existing competitive grant programs, including FTA, FRA, and DOT programs.

Consolidates FTA Bus Competitive Grants

DOT proposes to consolidate the Grants for Buses and Bus Facilities (49 U.S.C. § 5339(b)) and Low or No Emission (49 U.S.C. § 5339(c)) competitive grant programs into a single, more streamlined bus competitive grant program that eliminates the set-asides for low- and zero-emission buses and associated facilities. This proposal is consistent with APTA’s 2026 Surface Transportation Authorization Recommendations.

Consolidates FTA Ferry Competitive Grants

DOT proposes to consolidate three passenger ferry grant programs into a single FTA ferry grant program. It combines FTA’s Passenger Ferry (49 U.S.C. § 5307(h)), Electric or Low-Emitting Ferry, and Ferry Service for Rural Communities programs. The proposal would also eliminate any set-asides for low- and zero-emission ferries and associated infrastructure. This proposal is consistent with APTA’s 2026 Surface Transportation Authorization Recommendations.

Consolidates FRA Intercity Passenger Rail Competitive Grants

DOT proposes to consolidate intercity passenger rail grants into a single FRA intercity passenger rail (IPR) program. It combines FRA’s Federal-State Partnership for Intercity Passenger Rail (FSP), Corridor Identification and Development (CID), Restoration and Enhancement (R&E), and Interstate Rail Compacts (IRC) programs. This new IPR program will emphasize increasing competition in the development, design, construction, and operation of IPR projects.

Establishes DOT Building Beautiful Infrastructure is Great (BBIG) Competitive Grants

DOT proposes to consolidate five existing competitive grant programs administered by the Office of the Secretary into a single, multimodal program for major transportation infrastructure projects, to be named the Building Beautiful Infrastructure is Great (BBIG) program. It combines the Rural Surface Transportation Grants (Rural), Nationally Significant Freight and Highway Projects (INFRA), and National Infrastructure Project Assistance (Mega) programs into this new BBIG Program for transformative transportation infrastructure projects.

The Secretary also proposes that FRA’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program be modified to limit eligibility to smaller rail projects. Larger rail projects would be eligible under the multimodal BBIG program.

Establishes DOT America’s Beautiful Community Transportation Projects (ABC) Competitive Grants

DOT proposes to consolidate four existing competitive grant programs administered by the Office of the Secretary into a single, multimodal program for smaller transportation infrastructure projects, to be named the America’s Beautiful Community Transportation Projects (ABC) Grants Program. It combines the Reconnecting Communities Pilot (RCP), smaller projects of Rural Surface Transportation Grants (Rural), smaller projects of Nationally Significant Freight and Highway Projects (INFRA), and Local and Regional Project Assistance (BUILD) programs into this new ABC Grants Program for smaller transportation infrastructure projects.

Elimination and Modification of Programs

DOT proposes to eliminate or modify certain programs, authorized under the Infrastructure Investment and Jobs Act (IJA), that include public transit and passenger eligibility.

Eliminates Grants for Charging and Fueling Infrastructure

DOT proposes to eliminate the Grants for Charging and Fueling Infrastructure program, which funds deployment of electric vehicle (EV) charging infrastructure and other alternative fueling infrastructure. DOT notes that funding EV charging infrastructure is not an Administration priority.

Eliminates Strengthening Mobility and Revolutionizing Transportation (SMART) Grants

DOT proposes to eliminate the Strengthening Mobility and Revolutionizing Transportation (SMART) competitive grant program, which funds demonstration projects for advanced technologies and systems. DOT notes that the program can be funded through other research funding sources.

Modifies Congestion Relief Grants

DOT proposes to modify the Congestion Relief program, which provides competitive grants to advance innovative, integrated, and multimodal solutions to congestion relief in the most congested metropolitan areas of the United States. DOT proposes to change the program’s goals to remove a reference to “optimizing transit systems” and eliminate cordon pricing, public transit, and commuter bus project eligibility under the program. DOT also requests that the program be renamed the “Highway Congestion Relief Program” and asserts that FTA can leverage its existing programs to achieve the transit-related elements of the Congestion Relief program.

Modifies Safe Streets and Roads for All Grants

DOT proposes to modify the Safe Streets and Roads for All program, which provides competitive grants to support local initiatives to prevent death and serious injuries on roads and streets. DOT proposes to change the program from a competitive grant program to a formula grant program.

View DOT Letter on Surface Transportation Authorization (07.22.2026).

View APTA’s 2026 Surface Transportation Authorization Recommendations.