Resource Center: Transit & Rail

Overview

The Infrastructure Investment and Jobs Act includes a significant boost for transit and rail. For the nation’s transit systems, the infrastructure package contains $39 billion in new investments and increases funding by $19 billion, or 43%, from levels authorized under the Fixing America’s Surface Transportation (FAST) Act. Overall, the law totals $91 billion for transit, including a total of $69.9 billion over five years in authorized spending.

The IIJA represents the largest investment in passenger rail in the past 50 years, amounting to an additional $66 billion in rail investments over the next five years.

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Legislation Summary

For transit, spending includes:

  • Transit-oriented development planning funding starting with $13.16 million in 2022 and increasing to $14.43 million in 2026;
  • Enhanced mobility of seniors and individuals with disabilities funding starting with $371.25 million in 2022 and increasing to $407 million in 2026;
  • Pilot program for innovative coordinated access and mobility starting with $4.61 million in 2022 and increasing to $5.05 million in 2026;
  • Rural Area Formula funding of $875.29 million in 2022 and increasing to $959.6 million in 2026;
  • State of Good Repair Grants formula funding starting with $3.52 billion in 2022 and increasing to $3.85 billion in 2026;
  • Low or No Emission Program competitive grants of $71.6 million in 2022 and increasing to $78.5 million in 2026;
  • Growing states and high-density states formula funding starting with $741 million in 2022 and increasing to $812.5 million in 2026;
  • Capital Investment Grants (CIG) program, authorized at $3 billion each year;
  • Washington Metropolitan Area Transit Authority grants of $150 million annually.

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On top of the funding provided in the reauthorization, the new funding appropriated for the Federal Transit Administration is broken out as follows over five years:

  • $8 billion for Capital Investment Grants – This figure includes $4.4 billion for New Starts, $1.6 billion for Core Capacity, $1.2 billion for Small Starts, and $800 million for a project delivery pilot;
  • $4.75 billion in formula funding for the State of Good Repair program;
  • $5.25 billion for grants for low or no emission vehicles;
  • $1.75 billion for Americans with Disabilities Act upgrades to rail transit;
  • $1 billion for ferry service for rural communities;
  • $250 million for electric and low-emission ferries;

For passenger rail, the IIJA includes:

  • $6.5 billion for Amtrak’s Northeast Corridor;
  • $12.6 billion for Amtrak’s National Network;
  • $5 billion for Consolidated Rail Infrastructure and Safety Improvements (CRISI) grants;
  • $2.5 billion for the Railroad Crossing Elimination Program. Some 20% of this funding would be set aside for rural projects.
  • $7.5 billion for the Federal-State Partnership for Intercity Passenger Rail Grants. Some 45% of this figure would be eligible for use on the Northeast Corridor.

Under the law, Amtrak will also be required to consult with states, local governments, relevant transportation authorities, and other stakeholders on the development of new state-supported routes. Any public transit entity that owns infrastructure used for intercity passenger rail in the Northeast Corridor will be required to develop an asset management system to inform Amtrak’s capital investment program. Additionally, the law creates a new Corridor Identification and Development Program to facilitate the development of intercity passenger rail corridors.

The law also codifies the Railroad Rehabilitation and Improvement Financing program, which offers loans to finance the development of railroad infrastructure. The program would be authorized at $250 million over five years to provide credit assistance and include $70 million to refund credit risk premiums paid by borrowers.

In addition to appropriations included in the reauthorization, the bill also includes supplemental appropriations for FY22 – FY26. These appropriations include:

  • $36 billion for the Federal-State Partnership for Intercity Passenger Rail Grants, with as much as $24 billion set aside for the Northeast Corridor;
  • $16 billion for the Amtrak National Network and $6 billion for the Northeast Corridor;
  • $5 billion for CRISI grants.

To address infrastructure resiliency, the IIJA:

  • Provides $100 million annually over five years for the Safeguarding Tomorrow through Ongoing Risk Mitigation (STORM) Act. ASCE strongly advocated for increased appropriations for the STORM Act, which was enacted earlier this year and created a Resilience Revolving Loan Fund.
  • Makes an additional $1 billion available in grants for the Federal Emergency Management Agency’s (FEMA) Building Resilient Infrastructure and Communities (BRIC) Program. BRIC, which ASCE continues to strongly advocate for, is FEMA’s pre-disaster hazard mitigation program that replaces the existing Pre-Disaster Mitigation (PDM) program.

Report Card Wins

The passage of the Infrastructure Investment and Jobs Act – IIJA – represents a historic, once-in-a-generation investment in our roads, bridges, water and wastewater networks, ports, electric grid, dams, and more. It increases funding, makes smart improvements to policy such as streamlining permitting, and creates new programs targeted at all 17 categories in the 2021 Report Card for America’s Infrastructure. The law is a significant down payment on the $2.5 trillion infrastructure investment gap that was identified in the 2021 Report Card and will benefit American businesses and families for years to come.

IIJA addresses eight of ASCE’s recommendations concerning transit and rail. ASCE’s recommendations concerning transit include increasing investment, integrating transit and micro-mobility options with equitable access for all, and implementing new technology to leverage innovation and mobility options. ASCE’s recommendations on rail include continuing a financial and regulatory environment that supports private investment and innovative financing options for future investment, encouraging passenger rail infrastructure investment in high-population centers, supporting regional freight rail investment plans to facilitate efficient operation and reduce delays by eliminating bottlenecks, and supporting programs that reduce hazards at railway-highway crossings.

IIJA includes transit-oriented development planning funding starting with $13.16 million in 2022 and increasing to $14.43 million in 2026 and provides $91.2 billion for the Federal Transit Administration. IIJA creates a pilot program for innovative coordinated access and mobility. For rail, IIJA codifies the Railroad Rehabilitation and Improvement Financing program and authorizes it at $250 million over five years to provide credit assistance. The largest investment in passenger rail in 50 years, the IIJA provides $66 billion in rail investments over the next five years. IIJA also creates new programs to provide financial support for interstate compacts to advance the creation of new intercity passenger rail routes and to fund road-rail crossing grade separation projects, with $2.5 billion in appropriations.

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