According to the American Public Transit Association (APTA), House and Senate Appropriations Committee Leaders unveiled H.R. 2617, the Consolidated Appropriations Act, 2023, which represents an agreement on Fiscal Year (FY) 2023 appropriations legislation. The bill includes the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2023 (Division L) (THUD Appropriations bill).
The THUD Appropriations bill appropriates the overwhelming majority of public transit and passenger rail authorizations of the Infrastructure Investment and Jobs Act (IIJA). Specifically, the THUD Appropriations bill, together with the IIJA’s advance appropriations, provides a total of $21.2 billion for public transit in FY 2023, an increase of $704 million from the FY 2022 enacted level. This total appropriation is $66 million less than the total amount authorized in the IIJA.
Public Transit Breakdown
The THUD Appropriations bill fully funds the public transit contract authority of $13.6 billion, as provided by the IIJA. The THUD Appropriations bill, together with the IIJA advance appropriations, provides $4.2 billion for Capital Investment Grants (CIG), $387 million more than the FY 2022 enacted level. The THUD bill’s $2.6 billion CIG appropriation includes the following:
- $1.8 billion for New Starts,
- $100 million for Core Capacity projects,
- $215 million for Small Starts,
- $100 million for the Expedited Project Delivery for CIG Pilot Program, and
- An additional $425 million for projects with existing Full Funding Grant Agreements.
The THUD Appropriations bill also provides an additional $542 million for specific initiatives, including $90 million for Buses and Bus Facilities Competitive Grants; $50 million for Low-No Emission Bus Grants; $32.5 million for Passenger Ferry and Rural Ferry Grants; and $360 million for congressionally directed spending on designated public transit projects.
According to APTA, the bill includes several important policy provisions. Section 163 of the bill blocks the Rostenkowski Test, preventing a possible across-the-board cut of FY 2023 transit formula funds to each public transit agency. Section 164 prohibits the U.S. Department of Transportation (DOT) from impeding or hindering a project from advancing or approving a project seeking a CIG federal share of more than 40 percent.
Additional Funding
The THUD Appropriations bill and IIJA provide $16.6 billion for passenger and freight rail in FY 2023, an increase of $69 million from the FY 2022 enacted level. The THUD Appropriations bill and IIJA provide $2.3 billion for RAISE competitive grants for surface transportation projects, including public transportation and multi-modal projects. The THUD Appropriations bill provides $800 million for RAISE grants in FY 2023, which is $25 million more than the FY 2022 enacted level.