Congressman Mike Lawler (NY-17) has introduced the Transit Funding Flexibility Act of 2025, a bill designed to give public transit agencies greater control over how they use federal dollars.
Currently, recipients of urbanized area formula grant funds can only use federal aid for capital expenses such as purchasing buses or building stations, but not for operating costs like staffing, maintenance, or security. Lawler’s bill would remove that restriction, allowing agencies to apply federal funding toward operating expenses necessary to keep systems safe and functional.
“Public transit is vital to communities across New York and the Hudson Valley,” said Congressman Lawler. “Federal transit grants mostly cover big-ticket items like buying new buses or building stations, but not the day-to-day costs of running them. This bill provides transit agencies with greater flexibility to use these federal dollars for both physical infrastructure and operating expenses that keep transportation running safely and efficiently.”
Supporters say the legislation would help agencies address urgent needs such as enhanced law enforcement presence, security monitoring, and response to criminal activity. John Samuelsen, International President of the Transport Workers Union (TWU), praised the proposal as a necessary fix.
“This bill fixes a critical problem for transit workers and the traveling public across the country,” said Samuelsen. “Right now, federal funding limitations encourage agencies to purchase new infrastructure or equipment they don’t need and can’t operate because they can’t use the money for staffing or maintenance. Giving transit agencies the flexibility to spend federal funds on operations will result in better service for working families and a better return on investment for taxpayers.”
The Transit Funding Flexibility Act of 2025 is now before Congress for consideration.