House moves on appropriations ahead of shutdown deadline

Defying the possibility of starting the new year with a continuing budget resolution, the U.S. House of Representatives passed a $1.25 trillion spending package that includes funding for the country's roughed-up transit sector.

"This bipartisan agreement is a strong affirmation that public transit and passenger rail are essential national infrastructure," said Paul P. Skoutelas, president and CEO of the American Public Transit Association.

"It provides funding certainty that allows public transit agencies to continue investing in capital projects, safety, and reliable service that millions of Americans rely on every day."

The transit money is part of the appropriation for Transportation, Housing and Urban Development, also known as THUD. It passed with bipartisan support on a vote of 341-88.

According to APTA, "The legislation delivers the vast majority of public transit and passenger rail investments authorized by the Infrastructure Investment and Jobs Act."

Including the IIJA appropriations,$21.1 billion will be flowing into public transit, an increase of $168 million over the enacted level.

Passenger and freight rail is slated to receive $15.9 billion while the Federal Transit Administration formula grants and bus competitive grants are now both fully funded at authorized levels.

Federal grant money coming to states and municipalities typically requires local matching funds which can be raised through bond sales.

The THUD bill was yoked together with measures to fund Defense and Labor-Health and Human Services-Education.

A separate two-bill package containing the Financial Services and National Security-State bills also hitched a ride on the minibus.

The House also moved on funding the Department of Homeland Security for $64.4 billion which includes $10 billion for Immigration and Customs Enforcement.

The DHS bill was saddled with a high chance of failure, but seven Democrats crossed party lines to pull it across the finish with a 220-207 tally.

The House has now passed all 12 of the appropriations bills as focus turns to the Senate and a January 30 deadline when funding runs out.

With "the passage of this package, Republicans will have finally replaced the last of any Biden-era spending levels with Trump-era spending levels and policies," said House Speaker Mike Johnson R-La.

Under the Trump administration, transit has taken a back seat to an emphasis on spending more money on roads and bridges.

Last November a leaked memo floated the notion that transit support from the beleaguered Highway Trust Fund should be curtailed.

The HTF funnels about 20% of its money into funding transit projects, an amount estimated at between $6-$8 billion a year.

The new legislation includes protections against across-the-board formula funding cuts.

In October S&P Global Ratings published a rundown of the major transit agencies and listed the Chicago Transit Agency and the Alameda Contra Costa Transit District as having their outlook downgraded to negative from stable.

The Utah Transit Authority, senior lien went to stable from positive and the Metropolitan Transit Agency got an upgrade to A stable from A-positive.

The bills next stop is the Senate where hopes run high for a quick passage.

"APTA urges Congress to move swiftly to approve this legislation and ensure continued, predictable federal investment in public transportation and passenger rail," said Skoutelas.