North Carolina 2025-2026 Regular Session

North Carolina House Bill H641

Introduced
4/1/25  

Caption

Transportation for the Future Act

Summary

House Bill 641, titled the Transportation for the Future Act, would substantially revise North Carolina’s transportation funding and local land-use statutes to prioritize a broader mix of transportation modes and to change how state transportation dollars are allocated. The bill amends the State’s transportation investment formula to increase the share of funds going to regional impact projects from 30% to 40% and reduce the share for statewide strategic mobility projects from 40% to 30%, while keeping division need projects at 30%. It also explicitly recognizes and defines more categories of public transportation and nonhighway projects, including bus rapid transit, commuter rail, intercity rail, light rail, and bicycle/pedestrian improvements, and it adds or clarifies limits on state participation in certain rail projects, including a cap on state funding for commuter rail and light rail and a requirement for committed non-state funding before state money can be spent on light rail. The bill also revises the prioritization rules for transportation projects by requiring at least 20% of formula funds to go to non-highway projects and by adjusting the weighting of local input versus quantitative scoring in regional and division project selection. It expands the list of funds excluded from the formula, including federal Carbon Reduction Program funds and certain direct-attributable federal funds, and it modifies the rules for bonus allocations tied to local funding participation and toll revenue. In addition, the bill repeals two local-government statutes and updates several land-use provisions to refer more broadly to transportation facilities, including sidewalks, bicycle lanes, bus stops, and transit infrastructure, while preserving local authority to require dedication of rights-of-way and related transportation improvements in subdivision, zoning, and special-use permit regulations. The bill would also affect local tax and planning authority by changing the referendum language for county sales taxes so that a one-quarter percent local sales tax could be approved for public transportation systems. It further updates subdivision and zoning statutes to reflect multimodal transportation planning and to allow local governments to use developer contributions for transportation facilities beyond roads alone. Overall, the measure would shift state law toward a more multimodal transportation framework and give local governments more explicit tools to support transit-oriented and pedestrian/bicycle infrastructure. Because there are no committee transcripts or recorded votes in the provided materials, there is no documented formal debate or roll-call sentiment to summarize. Based on the bill text alone, the measure appears to be framed positively by its sponsors as a modernization of transportation spending and a way to support safe, sustainable, multimodal systems. The absence of recorded opposition in the provided context means the public sentiment cannot be measured from votes, but the bill’s structure suggests support for transit and active transportation priorities. The main points of potential contention are likely to be the reallocation of transportation funds away from highway-focused statewide projects, the explicit state funding limits and conditions on commuter rail and light rail, and the reduction in the role of highway-centric criteria in project selection. Stakeholders favoring traditional road expansion may object to the increased emphasis on transit, bicycle, and pedestrian projects, while transit advocates may view the funding caps and non-state funding requirements as too restrictive. Local governments may also have differing views on the expanded but still bounded authority to levy a transportation sales tax and on the revised development-related transportation requirements.

Impact

The bill would amend multiple provisions of North Carolina transportation and land-use law, chiefly G.S. 136-189.10 and G.S. 136-189.11, to change the State Transportation Investment Strategy formula, redefine eligible project categories, and alter funding priorities toward regional and non-highway transportation projects. It would also repeal G.S. 153A-145.1 and G.S. 160A-204, and revise G.S. 160D-804, G.S. 160D-702, and G.S. 160D-705 to broaden local planning and development authority over transportation facilities, including transit, bicycle, and pedestrian infrastructure. The bill further amends G.S. 105-511.2 to authorize a county referendum for a local sales tax dedicated to public transportation systems.

Sentiment

No committee transcripts or votes were provided, so there is no recorded legislative debate or vote history to measure sentiment. The bill’s title and findings indicate a pro-modernization, pro-multimodal policy direction, suggesting support from sponsors and likely transit-oriented advocates. At the same time, the bill’s redistribution of transportation funds and limits on rail funding imply that some stakeholders could view it as controversial or as a shift away from highway spending priorities.

Contention

Likely points of contention include the increase in funding for regional projects and non-highway modes, the reduction in the statewide strategic mobility share, and the bill’s explicit limits on state funding for commuter rail and light rail. Highway-focused interests may object to the rebalancing of the formula, while transit and active-transportation supporters may argue the bill still imposes restrictive caps and funding conditions. Local governments and developers may also differ over the expanded transportation-related land-use requirements and the new sales-tax referendum authority for public transportation.

Companion Bills

NC S519

Same As Transportation for the Future Act

Previously Filed As

NC S519

Transportation for the Future Act

NC HB5230

Faster Buses Better Futures Act

NC S145

Mecklenburg Transportation Referendum

NC S952

Repeal STI Cap on Light Rail/Fund Rail Safety

NC H735

Modernize STI Transit Funding

NC HB735

House Bill 735

NC A08560

Directs the Department of Transportation to grant a permanent access and construction easement to the Metropolitan Transportation Authority for the use of a portion of DOT-owned land to support potential future rail yard development.

NC S08349

Directs the Department of Transportation to grant a permanent access and construction easement to the Metropolitan Transportation Authority for the use of a portion of DOT-owned land to support potential future rail yard development.

NC HB641

House Bill 641 (=S519)

NC S584

Local Govt Transportation System Financing

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