The American Public Transportation Association is urging the U.S. Congress to commit $268 billion toward public transit and passenger rail over the next five years as policymakers prepare the next major federal transportation funding package.
.jpg)
The funding request, outlined in a report released Tuesday, calls for $138 billion to support public transit systems and $130 billion for passenger rail projects nationwide. The investment would be included in the upcoming surface transportation legislation that will replace the current funding framework established by the Infrastructure Investment and Jobs Act of 2021.
Transit leaders say the next round of federal transportation funding will play a crucial role in shaping the nation’s infrastructure, economic competitiveness and mobility systems for years to come.
“Over five years, these decisions will shape not just the future of APTA members, but the strength and the competitiveness of our entire national economy,” APTA Chair Leanne Redden said during a press conference announcing the proposal.
The current five-year transportation funding cycle authorized under the Infrastructure Investment and Jobs Act is scheduled to expire on Sept. 30, prompting lawmakers in both chambers of Congress to begin shaping the next long-term transportation bill.
Committees in the U.S. House and Senate have already started holding hearings and discussions to determine priorities for the next multiyear infrastructure package.
Transit advocates argue that sustained federal funding is essential for maintaining and expanding public transportation networks that millions of Americans rely on daily.
“When it comes to smart investments, the facts speak for themselves,” said Paul Skoutelas, president and CEO of APTA.
According to a related economic analysis released alongside the report, every $1 billion invested in public transit generates roughly $5 billion in gross domestic product for the U.S. economy. The report also estimates that such investments produce approximately $251 million in federal, state and local tax revenue.
In addition to funding increases, the association’s recommendations emphasize policy reforms designed to speed up infrastructure development and reduce regulatory barriers.
APTA’s proposal calls for eliminating certain statutory requirements that can delay infrastructure construction and for streamlining environmental review processes for transit and passenger rail projects.
The organization also suggested creating a centralized database identifying construction materials that meet the requirements of the Build America, Buy America Act, which mandates the use of domestically produced materials for federally funded infrastructure projects.
Transit leaders say simplifying compliance procedures could significantly accelerate project delivery timelines while supporting domestic manufacturing and supply chains.
Transit investment also supports a substantial national manufacturing network tied to buses, railcars and infrastructure components.
According to APTA, more than 3,000 suppliers across 49 states produce parts and systems used in transit vehicles and rail equipment. These suppliers contribute to job creation and economic activity in communities throughout the country.
Supporters of the proposal argue that strong federal transit funding helps sustain these supply chains while also generating employment during construction and infrastructure upgrades.
The association also recommended expanding the use of private activity bonds to help finance transportation projects through public-private partnerships. Specifically, APTA is urging lawmakers to increase the statutory cap on these tax-exempt bonds from $30 billion to $45 billion.
Transit advocates say building support in Congress will require demonstrating the local economic benefits of transit projects across both urban and rural communities.
“Gaining support for APTA’s recommendations involves telling those local stories and making them translatable to both members of Congress and specifically their constituents,” Redden said.
“It’s important for [congressional] members from smaller areas, small cities, other states across the country, to understand that real jobs and real investment is happening in their communities, whether they have a robust transit, public transportation network or not.”
Across the United States, cities and regions are expanding transit networks to address congestion, population growth and sustainability goals. Many transit agencies are also modernizing aging rail systems, buses and stations built decades ago.
Large metropolitan areas continue to invest in new rail corridors, bus rapid transit systems and electrified bus fleets, while smaller communities are exploring regional mobility solutions and improved commuter rail connections.
Transportation planners say long-term federal funding will be essential to support these efforts, particularly as infrastructure construction costs rise and communities seek more resilient and environmentally sustainable transportation systems.
Public transportation systems play a vital role in the broader U.S. infrastructure network by supporting economic development, workforce mobility and environmental goals.
Expanding transit infrastructure can reduce road congestion, lower greenhouse gas emissions and provide more reliable commuting options in rapidly growing metropolitan areas.
The next federal transportation bill will therefore be closely watched by transit agencies, construction firms and infrastructure investors, as it could shape project pipelines and funding availability across the country for the remainder of the decade.
Originally reported by Dan Zukowski, Senior Reporter in Construction Dive.
