President Joe Biden recently revealed his plan for public transportation if he wins the White House race in November. Here’s a breakdown of what Biden’s Budget for 2025 means for you and your community.
Budget Breakdown
President Biden is proposing to allocate $16.8 billion for public transportation, an increase of $198 million from last year.
Billions for Public Transit
But that’s not all – when you add in the funds from the Infrastructure Investment and Jobs Act (IIJA), the total budget for public transit could reach a huge $21.1 billion in the coming year.
Investment in Infrastructure
A significant chunk of this budget – $2.4 billion, to be exact – is earmarked for the Capital Investment Grants (CIG) program.
Investing in Infrastructure
This program helps fund major transit projects that improve infrastructure and expand services. With the additional funds from IIJA, the budget for CIG projects could soar to $4 billion in FY 2025.
High Demand for Funding
Communities have requested more than $45.1 billion in CIG funds to support 66 projects in 24 states in the coming years – a huge demand for transit investment.
New Policies for Public Transit
One of the big challenges facing the transport sector right now is operating expenses. With fare revenues down and COVID-19 relief funds running out, many transport agencies are battling with their budgets.
Riding the Rails
To help address this, the Biden administration is proposing to allow Urbanized Area Formula funds – money reserved for Urbanized Areas – to be used for operating expenses, and highway funds could help with operating assistance.
Affordable Solutions
This could help keep buses and trains running smoothly without breaking the bank.
Enhanced Federal Support
At the moment, the government offers grant programs to help seniors and people with disabilities get around and to improve transport in rural areas.
Investing In Transit Accessibility
At the moment, local areas pay some of the cost and offset the rest with the grant, but Biden has suggested the government would pay 100 percent. This could help make transit more accessible for everyone.
Support for Micromobility
The government wants to allow public transportation agencies to use their money to pay for “micromobility” services – basically shared bikes and scooters, etc.), not just for bike parking or shelters.
They’re planning to expand what public transit money can be spent on to include these kinds of projects.
More Money for Trains
Biden plans to spend $3.2 billion on train programs, $180 million more than last year.
When you add in money from the Infrastructure Investment and Jobs Act (IIJA), the total could reach $16.4 billion in 2025.
Where’s the Money Going?
A big chunk – $2.5 billion – is earmarked for Amtrak – the same as last year. With IIJA funds, it could go up to $6.9 billion, split between national and Northeast Corridor grants.
Enhancing Rail Safety
The budget also sets aside $100 million for passenger rail grants and $250 million for rail infrastructure and safety improvements.
Policy Changes
The budget also suggests some new rules for rail grants, with Biden planning to increase the government’s contribution to 90% for projects that help underserved communities.
They’re also setting aside $15 million for a special grant to improve Washington Union Station.
Changing How Grants Are Given Out
There are also plans to revamp how grants are awarded for projects like improving railroad crossings.
The goal is to ensure the money goes where it’s needed most and has the biggest impact.
Department of Transportation Programs:
The budget plans to allocate $800 million to grants for other transportation projects, such as fixing roads and building bridges.
These funds would come from the leftover money from the Transportation Infrastructure Finance and Innovation Act (TIFIA) program.
What Does This Mean for You?
If you’re one of the millions of Americans who rely on public transport, these budget proposals could significantly impact your daily life.
More Funding = Better Service?
More funding should technically equal better service, more routes, and safer, more reliable transportation options – although you can never be sure when it comes to government spending!
On Track to Create More Jobs
It could also mean more jobs in the transit industry, which is good news for workers and communities alike.
The post Government Puts Forward $21.1 Billion Plan to Enhance Public Transportation first appeared on Wealthy Living.
Featured Image Credit: Shutterstock / Wachiwit.
The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
