Investments in Rural Transit Act

Key Points

• The bill raises the federal share of operating costs for rural transit from 50% to 80%, making it significantly easier for small towns and rural communities to keep bus and transit services running without relying as heavily on local funding.
• Tribal transit systems would receive a dedicated 5% set-aside of federal bus and facility grants, and the federal government could cover up to 100% of eligible project costs — removing the need for local matching funds that many tribes struggle to provide.
• The bill expands cooperative purchasing options so local governments, nonprofits, and transit consortiums can join together to buy buses, farebox equipment, software, and other technology at better prices — similar to bulk-buying discounts.
• A new Associate Administrator for Program Management and Tribal Transit must be created within the Federal Transit Administration within one year, focused on helping Tribal transit agencies build capacity and get technical assistance.
• The Departments of Transportation and Energy must produce a joint report within two years on how rural transit agencies can more efficiently purchase low- and no-emission infrastructure, including by partnering with school districts and municipalities.