Federal Legislation
Senate Advances Rural Transit Funding Legislation
March 18, 2026
The U.S. Senate, led by Senator Mike Rounds and supported by Senators Tammy Baldwin and Tina Smith, has introduced the Investments in Rural Transit Act to enhance federal support for rural transit agencies. This legislation proposes increasing the federal share of operating costs from 50% to 80%, reducing administrative burdens, and authorizing joint procurement of vehicles and equipment to improve efficiency and cost-effectiveness. It also prioritizes Tribal transit agencies by establishing dedicated leadership within the Federal Transit Administration (FTA). These changes aim to strengthen rural transit services, which are critical for connecting workers, seniors, and other community members to essential services and economic opportunities.
- Key agencies involved: Federal Transit Administration and Department of Transportation will oversee implementation and funding allocation.
- Procurement implications: Rural transit agencies can leverage expanded joint procurement authority to reduce costs and streamline vehicle and equipment acquisitions.
- Funding impact: Increased federal operating cost share to 80% improves financial viability for rural transit providers.
- Strategic considerations: Transit contractors and suppliers should evaluate opportunities arising from anticipated growth in rural transit vehicle and equipment procurements, especially those serving Tribal agencies.
Public transit serves all citizens including workers, students, seniors, and individuals accessing medical care. We support the Investments in Rural Transit Act that allows continued access, independence, and economic participation across our communities.
— Barbara Cline
Our bipartisan legislation will invest in rural communities so workers and families are better connected to what they need.
— Tammy Baldwin
For rural South Dakotans who do not own a vehicle, transit services are a lifeline to reach their jobs, medical appointments, grocery stores and other necessities.
— Mike Rounds
Agencies
Federal Transit Administration, Department of Transportation, Department of Energy, Prairie Hills Transit
Contracts
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Locations
Sources
- Rounds Introduces Legislation to Support... | U.S. Senator Mike Rounds · Rounds Senate · Mar 18