S3978119th CongressWALLET

Investments in Rural Transit Act

Sponsored By: Senator Smith, Tina [D-MN]

Introduced

Summary

Raises federal support for rural and tribal public transit. This bill would boost federal funding shares, widen cooperative purchasing, and create new tribal-focused capacity to speed rural transit modernization and cleaner fleets.

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  • Rural transit agencies and state departments of transportation would see bigger federal funding for operations and projects by raising the Section 5311 federal share cap from 50 percent to 80 percent and adding a regulatory-relief process to reduce compliance burdens.
  • Tribal transit agencies would gain guaranteed access and stronger support through a new Section 5339(b) tribal allocation of not less than 5 percent each year, the option for up to a 100 percent federal share for tribal projects, and a new Associate Administrator for Program Management and Tribal Transit focused on technical assistance and capacity building.
  • Local governments, eligible nonprofits, and cooperating buyers would be able to use expanded cooperative procurement for vehicles, fare equipment, software, and other eligible technology, backed by annual federal reviews and a joint multi-year look with the Department of Energy to target low- and no-emission infrastructure in rural areas.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Easier cooperative buying and clean vehicle plans

If enacted, the bill would let local governments and nonprofit purchasing groups join cooperative procurements using Federal transit assistance. Eligible buys would include buses, fare systems, software, and related equipment. The Secretary would also set up a feedback process and publish annual advisory reports to identify procurement improvements and cost savings. The Departments of Transportation and Energy would produce a joint report within two years on making low- and no-emission purchases more efficient, including working with school districts and municipalities.

Lower local costs for rural transit

If enacted, the bill would raise the Federal share for certain rural transit grants from 50% to 80%. That would lower how much local rural and Tribal transit agencies must pay for eligible projects. The bill would also require the Department of Transportation to set up a process to recommend regulatory relief for recipients of section 5311 assistance, with input from rural and Tribal agencies and State DOTs. These changes take effect upon enactment.

New Tribal funding and staff support

If enacted, the bill would set aside at least 5% of annual funds under a transit grant subsection for Tribal transit agencies, unless there are not enough eligible applications. It would let the Federal share for eligible Tribal projects be up to 100%. The bill would also require naming an Associate Administrator focused on Tribal transit within one year to help build capacity and provide technical assistance.

Sponsors & CoSponsors

Sponsor

Smith, Tina [D-MN]

MN • D

Cosponsors

  • Mike Rounds

    SD • R

    Sponsored 3/3/2026

  • Sen. Baldwin, Tammy [D-WI]

    WI • D

    Sponsored 3/3/2026

Roll Call Votes

No roll call votes available for this bill.

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