The reauthorization of federal surface transportation programs is underway as funding authorized by the 2021 Infrastructure Investment and Jobs Act expires by year-end. The proposed BUILD America 250 Act would allocate $103.3 billion for public transit over five years, compared with $119.9 billion under the current legislation—a reduction of $16.5 billion. When adjusted for inflation, the shortfall reaches approximately $24 billion, according to the Urban Institute.
Rural and smaller communities would face the most severe impacts from these cuts. Public transit agencies in less populated areas rely more heavily on federal support than their urban counterparts, and many have already experienced financial stress following pandemic-related ridership declines. Idaho is projected to experience the nation’s largest percentage decrease in federal formula transit funding at 18 percent, while Maine faces a 16 percent reduction. Transit advocates emphasize that rural systems depend almost entirely on federal appropriations, meaning losses at the federal level translate directly to service reductions or elimination.
Consequences could include delays in vehicle purchases, leaving agencies dependent on aging equipment, longer wait times for reservation-based services, and reduced mobility for people with disabilities and those unable to drive. In Maine, transit systems already fall short of desired service standards, while Indiana’s rural areas report weeks-long waitlists for reservation-based transit. Experts warn that reduced public transit options may force households to purchase additional vehicles, increasing overall transportation costs for already budget-constrained families.
Transportation advocates argue the proposed legislation reflects a continued prioritization of highway infrastructure over public transit investment. Some Democratic lawmakers have expressed concerns about the funding disparity and suggested more ambitious transportation investments are possible. The debate encompasses not only rural accessibility but also affordability, environmental impacts, and urban transit systems like New York City, which would lose an estimated $2.3 billion over the five-year period under the BUILD Act.
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