Sen. Patty Murray (D-Wash.) warned Oct. 7 that a Trump administration proposal tightening funding and engineering requirements for major transit projects while favoring corridors with higher birth and marriage rates could drive up costs and delay construction.
The Federal Transit Administration released the proposal Oct. 1 as part of an overhaul of its Capital Investment Grants (CIG) program, which funds new transit systems and expansions through its New Starts category, upgrades to existing high-capacity systems through Core Capacity and smaller projects through Small Starts. Murray, the ranking Democrat on the Senate Appropriations Committee, said the changes could affect 40 projects in the federal funding pipeline.
The American Public Transportation Association (APTA) identified 47 projects in 21 states seeking $34.5 billion in CIG funding that have not received construction grant agreements, according to its dashboard. APTA President and CEO Paul P. Skoutelas told ENR in an email that the organization is concerned about the combined effects of reduced federal appropriations and proposed changes to projects already under development.
“It could significantly change the federal share, the local financial commitment requirements and the project rating system on half of each of these 47 projects,” Skoutelas said. “These changes could significantly increase project costs and delay construction.”
For larger projects seeking grants for new start-up or core capacity, the changes would require sponsors to secure commitments for at least 50% of the planned non-IGC funding before applying to enter engineering, 30%. The requirement would not increase the non-federal share of total project costs, but would require a larger portion of the anticipated funding to be committed earlier in development.
Sponsors should also complete at least 15% of the overall design within one year of entry into project development, update project cost and schedule estimates, and prepare implementation plans for necessary third-party agreements. The FTA would require documentation demonstrating that the National Environmental Policy Act review had begun before sponsors apply for entry into project development.
FTA says the revisions are intended to streamline the grant process, improve sponsor accountability and reduce federal financial exposure. In an Oct. 7 statement to Reuters, the USDOT defended the stricter timelines and said projects seeking federal funding should align with communities experiencing family and population growth. The agency cites environmental reviews and permitting issues as frequent causes of project delays.
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The new formula would reward birth and marriage rates
Birth and marriage rates within one mile of proposed transit corridors would influence federal funding quotas under the FTA’s proposed formula, with projects eligible for increases of up to 10 percentage points.
Photo: Alberto GV PHOTOGR/Adobe
Transit projects in corridors where birth and marriage rates exceed the national average by more than 1 percent could receive a five percentage point increase in their federal funding share calculated for each measure, potentially increasing that share by a combined 10 percentage points. Smaller increases would apply to riders with fares at or slightly below national averages, based on demographics within one mile of the proposed route.
The incentives would be added to a funding calculation starting at 40% of project costs for start-up and core capacity projects rated as medium or higher, with adjustments based on profitability, number of users and other criteria. Profitability would account for 25% of the project’s overall justification rating, up from roughly 16.7%, while environmental benefits would drop to 5%. Federal contributions would be subject to statutory limits and could not exceed the amount requested.
Murray contends the formula could conflict with congressional appropriations legislation governing federal participation in transit projects. The 2026 Transportation Appropriations Act prohibits federal funds from being used to prevent the advancement or approval of CIG projects that seek contributions in excess of 40% of project costs. It does not expressly guarantee a minimum award of 40%, leaving unresolved whether the proposed formula conflicts with this restriction.
Existing projects would not be soon
The FTA would apply the revised requirements immediately after the issuance of the final guidelines, without any general criteria for projects already underway CIG. Therefore, sponsors still in project development could face funding and engineering requirements that were not in place when they entered the program, which could require them to revise completed work.
Projects already in engineering would retain their previously approved federal funding quotas, but would not be exempt from additional oversight. FTA proposes annual reviews of project costs, schedules, funding commitments and critical third-party agreements. Sponsors who do not demonstrate sufficient progress may be removed from the program, although they may apply for re-entry.
Public comments are due Nov. 16, after which FTA will review the submissions and determine whether to revise the proposed requirements before issuing final guidance.
