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Transit funding threatened once more | Bond Purchaser

EditorialBy EditorialNovember 17, 2025No Comments3 Mins Read

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Paul Skoutelas, CEO and president, APTA
“We urge President Trump to reject the U.S. Division of Transportation’s misguided proposals to get rid of the Mass Transit Account of the Freeway Belief Fund and prohibit states from utilizing their freeway funds for public transit,” stated Paul P. Skoutelas, the president and CEO of the American Public Transportation Affiliation. “These reckless proposals would devastate People in cities, suburbs, and rural communities throughout the nation slicing off essential transit providers that gives entry to jobs, well being care, and training.” 

APTA

The Trump administration’s deprioritizing of public transit funding is reaching one other stage as plans to get rid of a key funding supply have grow to be clear.

“We urge President Trump to reject the U.S. Division of Transportation’s misguided proposals to get rid of the Mass Transit Account of the Freeway Belief Fund and prohibit states from utilizing their freeway funds for public transit,” stated Paul Skoutelas, the president and CEO of the American Public Transportation Affiliation. 

“These reckless proposals would devastate People in cities, suburbs, and rural communities throughout the nation, slicing off essential transit providers that gives entry to jobs, well being care, and training.” 

The feedback are available response to studies of an inner memo throughout the DOT that proposes killing off the funding stream flowing from the Freeway Belief Fund to transit initiatives.

The much-troubled HTF funnels about 20% of its cash into funding transit initiatives, an quantity estimated at between $6-$8 billion a 12 months.     

In response to knowledge from the Eno Middle for Transportation, in 2024 the HTF spent $26.7 billion greater than it acquired in web freeway consumer tax funds. 

In response to the Tax Basis, “With out reform, freeway spending will exceed freeway income by $17 billion in 2026.” 

Fixing the HTF is in an intractable concern brought on by gasoline taxes that haven’t been adjusted for inflation and the rise of electrical automobiles. Transfers from normal funds created by the Bipartisan Infrastructure Regulation have stored it afloat in recent times.   

A brand new report from The Tax Basis recommends a higher reliance on consumer charges based mostly on Car Miles Traveled.

VMT-based options embrace highway consumer costs additionally know as RUCs. Three states have already got RUCs applications in place and a minimum of 35 others are researching the thought.   

In response to the Tax Basis, “A VMT tax is essentially the most environment friendly and sustainable possibility for U.S. freeway funding amid quickly altering markets and applied sciences. It finest achieves the user-pays precept, aligning taxes paid with precise highway use, automobile weight, and infrastructure prices.” 

The subsequent five-year reauthorization of freeway funding is due in September 2026.

The Home Committee on Transportation and Infrastructure is already arduous at work on options that embrace EV charges and extra formula-based funding for highways. 

The Trump administration continues a sample of antagonizing public transit authorities which incorporates efforts to undermine the congestion pricing system at present in place in New York Metropolis. 

Trump and his DOT Secretary Sean Duffy has heaped criticism on transit companies and threatened to withhold funding in Charlotte, N.C., Philadelphia, and Washington, D.C. 

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