New stimulus package introduced by House Democrats includes $15.75 billion for transit
House Democrats introduced the Heroes Act on May 12, a fifth stimulus package totaling approximately $3 trillion. The piece of legislation also includes $15.75 billion for the transit industry.
The transit funding is in addition to the $25 billion provided to U.S. transit agencies through the Coronavirus Aid, Relief and Economic Security (CARES) Act, but falls short of the $32 billion asked by a coalition of 15 transit agencies and $23.8 billion the American Public Transportation Association (APTA) had been advocating to be included.
The 15-agency coalition, which serves populations that represent 35 percent of the national gross domestic product when combined, asked for additional funding to help cover financial losses not eligible for reimbursement under the CARES Act.
“Revenue replenishment is our most immediate need in combination with substantial investment in transportation infrastructure to facilitate community recovery while maintaining employment. Revenues that support our operations as well as critical recapitalization and expansion have been decimated by this pandemic, and replacing them with federal funds will allow us to meet our near-term obligations while maintaining critical construction activity through 2021 that will sustain hundreds of thousands of jobs in this period of unprecedented unemployment,” the 15-agency coalition wrote in a letter to congressional leaders.
Maintaining employment numbers is a critical argument APTA made for additional funding, as well. The association cited an economic report from EBP US, Inc., that showed decreased investment in public transit would cost the country 37,000 construction jobs in 2020 and 34,000 construction jobs in 2021.
“The $25 billion that was provided by the CARES Act was a lifesaver for public transit services, but we now have a more complete picture of the extraordinary and devastating impact,” said APTA President & CEO Paul P. Skoutelas. “These additional funds are critical to continue serving essential workers and make sure that we can help get our country back to work and to other activities that are so important for our economic recovery.”
The Heroes Act would allocate $15.75 billion for transit and would be split into a $11.75 billion bucket for urbanized area formula funds for transit entities serving populations of more than three million that would be distributed using Fiscal Year 2020 formulas and $4 billion in grants.
The act would also create relief funds for state and local governments to access through the Department of Treasury to support essential workers, including transit employees.
Leadership in the House said it plans to move the package through quickly, but Senate leaders said they would not consider any legislation sent over until after Memorial Day at the end of May.
Mischa Wanek-Libman | Group Editorial Director
Mischa Wanek-Libman is director of communications with Transdev North America. She has more than 20 years of experience working in the transportation industry covering construction projects, engineering challenges, transit and rail operations and best practices.
Wanek-Libman has held top editorial positions at freight rail and public transportation business-to-business publications including as editor-in-chief and editorial director of Mass Transit from 2018-2024. She has been recognized for editorial excellence through her individual work, as well as for collaborative content.
She is an active member of the American Public Transportation Association's Marketing and Communications Committee and served 14 years as a Board Observer on the National Railroad Construction and Maintenance Association (NRC) Board of Directors.
She is a graduate of Drake University in Des Moines, Iowa, where she earned a Bachelor of Arts degree in Journalism and Mass Communication.
