Transit lobby pushing Congress for $57.5 million in stalled funding

The American Public Transportation Association is pressing Congress for at least $57.5 million in emergency appropriations to the Federal Transit Administration’s Public Transportation Emergency Relief program to support agencies recovering from Hurricanes Helene and Milton.

“Emergency relief funding is not just about repairing infrastructure, it’s about ensuring that transportation remains a critical support system for communities rebuilding after devastating natural disasters,” said Paul P. Skoutelas, APTA president and CEO. 

“This funding is critical now more than ever, as climate-driven disasters increase in intensity and frequency. Congress must act swiftly to provide the resources necessary to protect these essential services and the communities they serve.”

According to APTA, the lack of funding is holding up public transit rebuilding operations in 14 states. Their appeal for relief includes a letter addressed to Senators and House Representatives on the Appropriations Committees.   

“This emergency funding is necessary to help public transit agencies offset the significant costs of providing emergency transportation services, rebuilding damaged infrastructure, and replacing vehicles destroyed by Hurricanes Helene and Milton, and other recent natural disasters,” APTA said in that letter.

The Congressional appropriations process is already way behind schedule. According to the National Association of Counties, “As of September 27, when the U.S. House adjourned for August recess, the chamber has passed 5 of the 12 fiscal year 2025 spending bills.” 

The Senate is in better shape as it has marked up and advanced 11 of the 12 fiscal year 2025 spending bills. Both houses are scheduled to resume appropriations work since the election break is now over the lame duck session is on. 

The pandemic devastated transit ridership and the federal government propped up the systems with a $69.5 billion infusion, but those funds have run out.  Recovery of the major systems shows mixed results

In September S&P Global Ratings changed its overall outlook for the U.S. transit sector to positive. 

“We revised our sector view to stable from negative for U.S. public mass transit operators, due to stabilizing credit fundamentals from dedicated tax revenue growth often outpacing fare revenue decreases, recovering-but-still-weaker ridership, and operators’ ability to adjust service levels and expenses to restore fiscal structural operating fund balance,” wrote S&P. 

In October Fitch Ratings assigned an AA- rating to the San Francisco Bay Area Rapid Transit District $544 million Transportation Infrastructure Finance and Innovation Act 2024-A and 2024-B bonds and applied a negative outlook. 

Also, in October Fitch assigned an AA rating to $48 million in transportation revenue refunding green bonds to be issued by the New York and Metropolitan Transportation Authority with a stable outlook. 

In August Fitch Ratings upgraded the Metropolitan Atlanta Rapid Transit Agency sales tax revenue bonds to AA+ from AA.      

The MTA is trying to shore up its system by using a congestion traffic system that has turned into a political and legal tug of war between the MTA and the state of New Jersey. The fight has also attracted President-elect Trump’s attention.