Federal transit cuts could hit rural America hardest

by | Sep 22, 2026 | Climate Change

Federal transit cuts could hit rural America hardest

The proposed BUILD America 250 Act, which would reauthorize surface transportation programs expiring by the end of the year, would allocate $16.5 billion less for public transit than the Infrastructure Investment and Jobs Act signed in 2021. The new legislation would authorize $103.3 billion over five years compared with the baseline of $119.9 billion in the previous act, and would require an additional $24 billion when adjusted for inflation to match prior funding levels.

Rural communities and tribal areas would experience particularly severe impacts from the funding cuts, according to transportation advocates and researchers. Rural transit systems depend more heavily on federal support than urban agencies, and many have struggled financially since pandemic-related ridership declines combined with years of underinvestment. Idaho faces the steepest percentage decline at 18 percent, while Maine would see a 16 percent reduction in federal formula transit funding. In Idaho, local governments lack the financial capacity to compensate for lost federal support, potentially leaving individuals with disabilities socially isolated and unable to access services beyond medical appointments.

Other affected states and cities also face challenges. Indiana’s rural agencies already operate with long reservation waitlists, and Indianapolis may be forced to delay bus purchases. New York City would lose $2.3 billion over five years. Some Democrats, including Representative Jerry Nadler, have opposed the bill, arguing it perpetuates prioritizing highways over rail and transit despite their role in supporting economies and reducing congestion.

Transportation advocates contend the cuts could push households toward private vehicle ownership, increasing household transportation costs beyond gas and insurance to include parking, maintenance, and repairs. They argue that transit investment benefits communities broadly regardless of individual usage patterns, and that the legislation represents a step backward in expanding Americans’ mobility options beyond cars.

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