Dive Brief:
- The American Public Transportation Association is calling for a $268 billion investment in public transit and passenger rail over the next five years, in a report released Tuesday.
- Funding would come from the upcoming surface transportation legislation, with $138 billion for public transit and $130 billion for passenger rail, building on funding from the Jobs and Infrastructure Investment Act of 2021.
- “For five years, these decisions will shape not only the future of APTA members, but the strength and competitiveness of our entire national economy,” APTA President Leanne Redden said during a news conference Tuesday.
Diving knowledge:
The current five-year federal transportation funding cycle under the IIJA expires on September 30. Congressional committees in the House and Senate have begun discussions and hearings to shape the next multiyear legislation.
“When it comes to smart investments, the facts speak for themselves,” APTA President and CEO Paul Skoutelas said at the news conference. A separate economic report, also released yesterday, shows that every $1 billion invested in transit generates $5 billion in gross domestic product for the US economy. That investment also generates $251 million in federal, state and local tax revenue, according to the report.
APTA’s recommendations for the next transportation bill focus on continued investment, accelerating project delivery by removing legal and regulatory barriers to infrastructure construction and improving local decision-making.
The report suggests “eliminating unnecessary and burdensome requirements” for certain grants, giving transit agencies the authority to streamline environmental reviews of transit and passenger rail projects and creating a centralized Buy America database of construction materials that meet the requirements of the Build America, Buy America Act.
According to APTA, 3,000 suppliers in 49 states make components for buses and passenger rail cars, creating jobs in those states and communities.
APTA also recommends expanding eligibility for private activity bonds and raising the statutory cap from $30 billion to $45 billion. These tax-exempt bonds are generally presented by state departments of transportation for public-private partnerships.
Gaining support for APTA’s recommendations involves “telling those local stories and making them translatable both to members of Congress and specifically to their constituents,” Redden said. “It is important for [congressional] members from smaller areas, small cities and other states across the country, to understand that real jobs and real investment are happening in their communities, whether they have robust transit, public transit or not.”
