Biden’s FY25 Budget Request: Increased Funding for Public Transit, Passenger Rail

President Joe Biden on March 11 released his Fiscal Year (FY) 2025 Budget request, outlining his Administration’s priorities for the next year. It proposes increased funding for public transit and passenger rail, according to the American Public Transportation Association (APTA).

President Biden is seeking $16.8 billion for public transportation, a $198 million increase from the FY 2024 enacted level, according to a March 12 APTA report. When combined with the advance appropriations included in the Infrastructure Investment and Jobs Act (IIJA), the President requests $21.1 billion for public transit in FY 2025, the association said.

“The Budget request includes $2.4 billion for the Capital Investment Grants (CIG) program,” APTA said. “When combined with IIJA funding, the Budget provides $4 billion for CIG projects in FY 2025. The Budget provides more flexibility with these available CIG funds by eliminating the specific IIJA allocations for New Start, Core Capacity, Small Starts, and Expedited Project Delivery Pilot Program projects in FY 2025. The Budget proposes funding for 14 New Start projects and four Small Start projects in 11 States.”

Communities are currently requesting more than $45.1 billion of CIG funds in FY 2024 and subsequent years to cover construction of 66 projects in 24 states, according to APTA.

APTA said the President’s Budget proposes new policy provisions for several public transit grant programs. Among them:

• “To address the projected operating budget shortfall caused by fare revenues remaining lower than pre-pandemic levels and COVID-19 relief funds expiring, the Budget proposes allowing § 5307 Urbanized Area Formula funds to be used for operating expenses,” according to the association. “To use this authority, grant recipients must certify to the Secretary of Transportation that the recipient will ensure a maintenance of effort comparable to the most recent fiscal year for projects funded by Urbanized Area Formula grants. In addition, the Budget proposes to allow highway funds (including unobligated balances) transferred to the Federal Transit Administration (FTA) in FY 2025 to be used for operating assistance.”
• The Budget proposes a Federal share of up to 100% for § 5310 Enhanced Mobility of Seniors & Individuals with Disabilities and § 5311 Rural Area formula grants, according to APTA, which noted that for Indian Tribes, the Budget proposes a Federal share of up to 100% for § 5339 Buses and Bus Facilities Competitive Grants and Low-No Emission Bus Grants.
• The Budget seeks to allow public transit agencies to fund shared-use micro-mobility projects and systems (e.g., bicycles, scooters) as “associated transit improvement” capital projects, in addition to the current authority (e.g., bicycle storage shelters, bicycle parking facilities), according to APTA.
• The Budget proposes to amend 49 U.S.C. § 5323(q) by replacing the term “right-of-way” with “real property interests,” which APTA said would expand “transit agencies’ opportunities for broader property acquisition prior to the completion of environmental reviews.” The association noted that it “strongly supports this provision, which was proposed in the FY 2024 Budget, to bring FTA’s property acquisition authority into parity with Federal Highway Administration programs.”
• In the FY 2025 Budget Evaluation Plan, FTA “proposes to evaluate the degree to which the State of Good Repair Formula Grants program is achieving a reduction in the repair backlog for transit agencies,” APTA said. “Similarly, the Federal Highway Administration proposes to evaluate the degree to which the Promoting Resilient Operations for Transformative, Efficient, and Cost-Saving Transportation (PROTECT) discretionary grant projects increase surface transportation’s resilience to natural hazards and climate change.”

Passenger, Freight Rail

According to APTA, President Biden is requesting $3.2 billion for passenger and freight rail programs, a $180 million increase from the FY 2024 enacted level. When combined with the IIJA’s advance appropriations, the President is seeking $16.4 billion for passenger and freight rail in FY 2025, the association said.

The Budget request includes $2.5 billion for Amtrak, which APTA said is the same amount as the FY 2024 enacted level. When combined with the IIJA’s advance appropriations, the President is seeking $6.9 billion for Amtrak, including $4.5 billion for National Network grants and $2.4 billion for Northeast Corridor grants, the association reported. The Budget also provides $100 million for Federal-State Partnership for Intercity Passenger Rail grants; $250 million for Consolidated Rail Infrastructure and Safety Improvement (CRISI) grants; and no new funding for Railroad Crossing Elimination grants, according to APTA, which said these amounts “are in addition to the $8.8 billion provided for these competitive rail grant programs pursuant to IIJA advance appropriations.”

APTA said the President’s Budget also proposes new policy provisions for several passenger rail grant programs. They are:

• For Federal-State Partnership for Intercity Passenger Rail grants, the Budget proposes a Federal share up to 90% for projects benefiting an “underserved community.” The Budget also sets aside not less than $15 million for a grant to Washington Union Station with a Federal share of 100%, according to the association.
• For CRISI grants, the Budget proposes to: “allocate $20 million for grants to States for State rail planning activities; allow any State, county, municipal, local and regional law enforcement agency to be an eligible recipient for trespassing prevention projects; for projects benefiting an underserved community, eliminate the statutory preference for projects where the Federal share of the total project costs does not exceed 50%, and provide a Federal share up to 90%; and retain up to $5 million to establish a National Rail Institute,” according to APTA.
• The President’s Budget proposes to “eliminate the preference for projects that maximize benefits (pursuant to a cost-benefit analysis) for certain CRISI-eligible projects including: regional rail and corridor service development plans; safety program or institute designed to improve rail safety; research for rail-related capital, operations, or safety improvements; workforce development and training activities; and research, development, and testing to advance and facilitate innovative rail projects,” APTA reported.
• For the Railroad Crossing Elimination grant program, APTA said the President’s Budget proposes to “eliminate the project selection criteria for improving the mobility of people and goods; for projects benefiting underserved communities, provide a Federal share of up to 90%; eliminate the state limitation (i.e., no more than 20% of grant funds available may be selected in any single state) in grant funds award distribution; and increase the set aside for grants for Highway-Rail Grade Crossing Safety Information and Education programs from 0.25% to 2.25% and include nonprofit organizations as eligible recipients.”

U.S. Department of Transportation Programs

According to APTA, the Budget request provides $800 million for Rebuilding American Infrastructure with Sustainability and Equity (RAISE) and Mega competitive grants for surface transportation projects, including public transportation and multi-modal projects. This proposal is funded from the unobligated balances of the Transportation Infrastructure Finance and Innovation Act (TIFIA) program.

APTA noted that under the Mega grant program, the Budget proposes to waive the 50% set aside for projects that cost between $100 million and $500 million.