Congress Moves to Keep Federal Funding Flowing in FY2021, Extend Transportation Authoritzation

Congress took the first step on Tuesday toward approving a continuing resolution to keep federal funding moving past the end of federal fiscal year 2020, which concludes Sept. 30.

The House of Representatives approve a continuing resolution on a 359-57 vote.

Included in the measure was a one-year extension of the current surface transportation law, which also expires on Sept. 30.

The extension will assure continue federal funding of highway construction projects as well as public transit and Amtrak.

However, the action by Congress this week also likely means that for now there will be no additional money for Amtrak and the carrier’s plans to reduce the frequency of operation of most long-distance trains to less than daily service will be implemented in October as planned.

Rail passenger advocates had fought to more than double Amtrak funding for FY2021 in order to preserve daily service on most of those routes.

The advocates had been urging Congress to approve additional emergency aid for Amtrak and public transit in another COVID-19 pandemic aid bill.

But political differences have sunk additional pandemic assistance for now, including more aid for the airline industry.

The continuing resolution approved by the House now moves to the Senate where approval is expected.

The resolution also includes provisions to bolster the Highway Trust Fund, including a transfer of $13.6 billion from the general fund.

That includes $10.4 billion to the trust fund’s highway account and $3.2 billion for its transit account.

The House bill also includes a $14 billion transfer to the Airport and Airway Trust Fund from the general fund.

Paul Skoutelas, American Public Transportation Association chief executive officer, said the House action would provide at least $12.6 billion for transit in FY2021,

The continuing resolution will continue federal funding through Dec. 11, meaning that action on FY2021 spending is being deferred into the lame duck session of Congress after the Nov. 3 elections.

It is possible that additional Amtrak and transit funding might be taken up then.

Transit Agencies Want More Emergency Aid

U.S. public transit agencies on Wednesday asked Congress to give them $36 billion in emergency federal funding as part of a new COVID-19 pandemic relief bill.

The agencies said the $25 billion they received from the Coronavirus Aid, Relief and Economic Security  Act in March is nearly exhausted and more funding is needed to help agencies continue providing passenger-rail and other transit services.

The Senate will return to session next week and the House has already earmarked $15.7 million for public transportation in its HEROES Act.

Although that legislation is before the Senate, Republican Senators have rejected the bill and are divided on how much to spend on additional COVID-19 relief funding.

The Greater Cleveland Regional Transit Authority and Southeastern Pennsylvania Transportation Authority are among the agencies in the coalition seeking the additional funding.

Transit Agencies Seek More Emergency Aid

Leaders of public transit agencies in Cleveland and Cincinnati have joined their peers at 13 other agencies in asking Congress for additional emergency aid for public transportation.

India Birdsong, the general manager of Greater Cleveland Regional Transportation Authority, and Darryl Haley, general manager of Southwest Ohio Regional Transit Authority signed the letter along with head of agencies in New York, Los Angeles, Chicago, Philadelphia, Seattle, San Francisco, Newark, Oakland (California), Washington, Miami, Atlanta, and San Carlos (California.).

The letter did not specify a dollar amount but in a news release the Metropolitan Transportation Authority of New York said its estimates show transit agencies in the United States need $32 billion to enable them to get through the remainder of 2020 and into 2021.

The Rail Passengers Association said on Friday the American Public Transportation Association wrote a similar letter seeking $23.8 billion in emergency assistance.

That funding would be divided into $19 billion provided through the Emergency Relief Program, which would be distributed proportionally to all public transit agencies with a demonstrated need; and $4.75 billion provided through Urbanized Area Formula Grants, Seniors and Individuals with Disabilities Formula Grants; and Rural Area Formula Grants.

There would be no required local of state match of the funding.

The letter from the transit agencies said they need the aid to survive the COVID-19 pandemic and would supplement the $25 billion in emergency aid Congress approved for public transportation in March.

The letter said since that aide was approved, “a fuller picture has emerged of  . . . losses from dedicated transportation revenue streams, such as farebox, sales taxes, motor fuel taxes, tolls, mortgage-related taxes and other user fees.”

The letter said the usual funding sources for public transportation have taken “a massive hit.”

The transit heads said their systems will not be able to support the regions they serve without replenishing those losses.

“Our regions cannot recover without public transportation, and the nation cannot recover without resurgent economies in our regions,” the letter said.

FY2020 Budget Boosts Amtrak, Cuts Public Transit Grants

The $1.4 trillion federal fiscal year 2020 spending bill contains a boost in Amtrak funding, but also slashes some spending for public transit and railroad grant programs.

President Donald J. Trump signed the two budget bills late Friday that were adopted by Congress earlier in the week.

The budget appropriates $2 billion for Amtrak, an increase of $58 million over the FY2019 budget.

However, the budget cut rail and transit programs by 3.6 percent, a drop of $586 million, below FY2019 levels.

The Consolidated Rail Infrastructure and Safety Grants received $325 million, an increase of $70 million over FY2019.

However, the Federal State of Good Repair program was cut in half compared to FY2019 levels to $200 million for FY2020. It had received $400 million last year.

Public transportation received $12.9 billion in total. Although the transit formula grants increased from $9.9 billion in FY2019 to $10.1 billion in FY2020, the Capital Investment Grants program saw its funding plunge from $2.5 billion in FY2019 to $1.9 billion in FY2020.

The investment grants program is used to launch new rail services.

Amtrak funding will be broken down to $1.2 billion for the national network and $650 million for the Northeast Corridor.

The bill earmarks $100 million for help pay for the acquisition of new single-level passenger equipment to replace aging Amfleet equipment used in Amtrak’s NEC, state-supported and long-distance services.

The Rail Passengers Associated noted in an analysis posted on its website that the budget bill contains a number of policy statements favorable to intercity passenger rail.

That includes a statement of the sense of Congress that long-distance passenger rail routes and services should be sustained to ensure connectivity throughout the National Network.

The bill also directed the Federal Railroad Administration to count state acquisition costs and ongoing capital charges related to Amtrak’s new fleet to as a local match for any future applications to the CRISI or SOGR grant programs.

Amtrak was directed to provide a station agent in each Amtrak station that had a ticket agent position eliminated in fiscal year 2018 and was told to provide a report to the House and Senate Appropriations Committees, no later than 120 days after enactment of the budget describing the changes initiated or implemented to Food and Beverage services in FY2019 and comparing those savings with Amtrak projections.

The spending bill directed Amtrak to submit a comprehensive workforce analysis for the Amtrak Police Department.

The passenger carrier was prohibited from using funds from the bill to reduce the total number of Amtrak Police Department uniformed officers patrolling on board passenger trains or at stations, facilities or rights-of-way below the staffing level on May 1, 2019.

Detroit Lawmakers Push Change to Benefit Transit

Detroit area lawmakers are pushing a plan in the Michigan legislature that would lift limitations imposed by the 2011 Michigan Municipal Partnership Act on ballot measure to fund public transportation.

The proposed legislation would lift property tax caps and change the ways proposals are placed on the ballot.

Backers of the change say it will lead to economic growth in the region.

But critics say it would create an “open line of credit” for Wayne County and lifting the property tax cap for transportation funding would create a “tool of foreclosure and taxing” those who can least afford it.

The proposed amendment to the 2011 law would allow local governments to offer more “efficient joint public services.”

The change has drawn some support from business leaders.

Jared Fleisher, vice president of government affairs for Quicken Loans, said the lack of reliable public transit options was a factor in Detroit being bypassed by retail giant Amazon during its second headquarters search.

Senate OKs FY2020 Transportation Funding

The U.S. Senate approved an amendment this week that blocked a 12 percent cut to transit agencies in fiscal year 2020.

The action came as the Senate also approved an appropriations bill that included funding for transportation programs including an increase in Amtrak funding.

The public transit cut would have amounted to $1.2 billion had it not been blocked.

Senator Martha McSally (R-Arizona), who sponsored the amendment to block the transit cuts with Doug Jones (D-Alabama), said the public transportation funding cuts would have been devastating to communities had they been adopted.

“These cuts could result in drastically reduced services, including those for low-income individuals and individuals with disabilities, and reduce funds necessary to modernize bus and rail fleets as well as slow construction of new stations and shelters,” she said during debate.

The spending bill funds transportation, housing and urban development, and related agencies.

The appropriations levels are similar to those adopted earlier by the House and the differences will now be need to be hammered out in a conference committee.

Because that process also involves reaching agreement on general spending figures for the budget as a whole, the reconciliation process may not be completed before the Nov. 21 expiration of a continuing resolution that is funding the federal government in FY2020.

Some congressional observers say Congress may need to adopt another continuing resolution in order to avoid a government shutdown.

In a related development, Senate Finance Chairman Charles Grassley (R-Iowa) acknowledged his committee has made no headway toward reaching an agreement on how to pay for increased spending outlined in the next generation of the federal surface transportation programs.

“There’s nothing new since we came back in September,” he told reporters in response to a question about funding a five year, $287 billion highway reauthorization proposal passed in August.

The Senate has yet to consider any proposals for mass transit or intercity rail funding.

Grassley said he has been unable to arrange a meeting with Senate Majority Leader Mitch McConnell (R-Kentucky) to discuss the eventual size and pay-fors for a financing title.

Passage of the reauthorization bills may slide into 2020 or beyond.

ODOT Sets Transit Funding Levels in FY2020

Details have been announced by the Ohio Department of Transportation regarding how the agency plans to distribute $70 million in general revenue funds being made available by the Urban Transit Program in the state’s 2020 fiscal year.

The funding plan covers 27 of Ohio’s public transit agencies that fall under the urban transit system category.

The information announced this week is the first outline of how ODOT plans to distribute funding to the state’s public transit systems.

ODOT is allowing funding for projects that support public transportation in Ohio except for those that are project administration and force account work.

General revenue funding may be used to provide 100 percent of the total project cost or 100 percent of the non-federal share to match a federal operating assistance grant.

The ODOT plan includes formula allocations for funding for the 27 Urban Transit Programs, which is expected to be $16.6 million .

Greater Cleveland Regional Transportation Authority will receive the greatest share at $3,670,747.

Akron Metro Regional Transit Authority will receive $1,007,281, Stark Area Regional Transit will receive $591,770, Medina Public County Transit will receive $133,352, Portage Area Regional Transportation Authority will receive $234,773, Lorain County Transit will receive $411,047, Laketran will receive $405,946, Western Reserve Transit Authority (Youngstown) will receive $478,648, and Trumbull County Transit will receive $81,254.

Cleveland RTA Won’t Seek Tax Hike This Year

The governing board of the Greater Cleveland Regional Transit Authority decided last week not to seek a tax increase in November.

Board member Trevor Elkins moved to ask voters to approve a 0.4 percent sales tax increase to support RTA, but his motion died for lack of a second.

Board members said during the meeting that it was too late to push for a tax increase this year and they want to continue talking with community leaders as they await the results of an operations study and an economic impact study.

Elkins, the mayor of Newburgh Heights, said the tax hike would raise about $73 million per year. “We should give the voters a choice this November,” he said.

But board President Dennis Clough responded, “We’re just not there.”

The earliest that RTA can now go to the voters to seek more funding is May 2019.

RTA funding has been hindered since a downturn in Cuyahoga County sales tax collections and a federal decree that Ohio may not apply its sales tax to Medicaid managed-care organizations to public transportation funding.

Much of RTA’s budget comes from a 1 percent sales tax and the agency is facing a $20 million funding shortfall by 2020.

Although the board has been discussing avenues to increase funding, there has yet to emerge a consensus on how to do that.

Among the ideas kicked around have been a sales tax increase, a property tax increase, a city of Cleveland parking tax increase, and even the hope that if Democrat Richard Cordray is elected elected governor in November he will increase state aid to public transit.

“We can’t continue to hope the state will rescue us,” Elkins said.

Clough, the mayor of Westlake, conceded RTA needs to find additional revenue to maintain its existing service.

“The need is urgent and the clock is ticking, but we should only move forward when all the right pieces are in place,” he said.

Clough added that a tax levy is likely, though, in 2019.

Marvin Ranaldson of Clevelanders for Public Transit said he understands the board’s concerns but worries about RTA’s funding future.

“We’re just disappointed . . . that after all this time and all this talk, that they decided to do nothing, which is basically what they have been doing for the last two years,” Ranaldson said.

Senate Approves Passenger Rail Funding

The U.S. Senate has approved on a 92-6 vote $16.1 billion for billion for public transit and intercity passenger rail while also seeking to preserve Amtrak’s national network.

The legislation provides $2.5 billion for intercity passenger rail grants, which are $1.3 billion more than authorized by the Fixing America’s Surface Transportation Act for Fiscal Year 2019.

The funding is contained within the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act of 2019.

The bill also funds the Federal Transit Administration’s Capital Investment Grants program at $2.5 billion, marking a $92 million decrease from FY18, according to a statement issued by nonprofit advocacy group Transportation for America.

The legislation allocates $1 billion for the Better Utilizing Investments to Leverage Development grants program.

The bill also specifically directs the U.S. Department of Transportation to administer the program as it was under 2016 in response to attempted changes that would have added “greater financial and administrative burdens on local communities.”

As for Amtrak’s national network, the Senate approved an amendment by senators Jerry Moran (R-Kansas) and Tom Udall (D-New Mexico) to provide $50 million to maintain the Chicago-Los Angeles Southwest Chief.

The amendment would provide the resources needed for maintenance and safety improvements along the route as well as “effectively reverse” Amtrak’s plans decision to substitute buses for rail service between Albuquerque and western Kansas.

It is designed to compel Amtrak to fulfill its promise of providing matching funds for the grant won by Colfax County, New Mexico, to rebuild the route.

Poll Finds 74% Favor More Transit Aid

A large majority of Americans believe that Congress should increase public transit funding, the American Public Transportation Association said this week.

A poll conducted for APTA by the Mineta Transportation Institution found 74 percent of respondents favored increased federal transit funding and 80 percent support using tax dollars for creating, expanding and improving public transportation in their communities.

The poll also found 80 percent of respondents said public transit is important to communities because it “helps businesses flourish.”

The survey collected data from 1,201 interviews with individuals across the United States.