US Federal 2025-2026 Regular Session

US Federal Senate Bill SB3978

Introduced
 
Introduced
3/3/26  

Caption

Investments in Rural Transit Act

Summary

The Investments in Rural Transit Act would revise federal transit law to make it easier and more affordable for rural and Tribal transit providers to buy buses, equipment, software, and related technology. It expands cooperative and joint procurement rules so that local governments, nonprofit purchasing cooperatives, and consortia can participate more broadly in shared purchasing arrangements using federal transit funds. The bill also directs the Federal Transit Administration to gather feedback from grantees and state transportation departments and to issue annual public recommendations on how to streamline procurement and reduce costs. The bill further amends the federal transit program for rural areas by increasing the federal operating assistance share from 50 percent to 80 percent, creating a regulatory-relief process for rural and Tribal transit recipients, and reserving at least 5 percent of certain bus and bus facilities funds for Tribal transit agencies, with the possibility of using less if there are not enough eligible applications. It also allows the federal share for eligible Tribal projects to reach 100 percent, and requires the Department of Transportation to designate an Associate Administrator focused on Program Management and Tribal Transit within one year. In addition, the bill requires the Secretary of Transportation and the Secretary of Energy to conduct a joint review of opportunities to make low- and no-emission infrastructure procurement more efficient in rural areas. That report must consider collaboration with other local public entities, such as school districts and municipalities, and be publicly available within two years. Overall, the bill is aimed at lowering administrative barriers, improving purchasing power, and expanding access to transit funding for rural and Tribal communities. Because the bill was only introduced and referred to committee, there is no recorded vote or committee debate in the provided materials. The available context suggests a generally supportive bipartisan framing, since the bill was introduced by a Democrat with Republican and Democratic cosponsors. The main policy emphasis is on cost savings, procurement flexibility, and targeted support for rural and Tribal transit systems, with no documented opposition in the supplied record.

Impact

The bill would amend federal transit statutes, primarily section 3019 of the FAST Act and provisions in chapter 53 of title 49, United States Code, to broaden cooperative procurement authority and increase federal operating assistance for rural transit. It would also create new statutory requirements for Tribal transit funding, including a minimum distribution from certain grant funds, a potential 100 percent federal share for eligible Tribal projects, and a new senior administrative role within the Federal Transit Administration focused on Tribal transit. These changes would directly affect the Department of Transportation, the Federal Transit Administration, state and local transit agencies, rural transit providers, Tribal transit agencies, and eligible nonprofit procurement entities.

Sentiment

The bill appears to have a positive, bipartisan policy orientation based on its sponsors and subject matter, with an emphasis on helping rural and Tribal transit systems stretch federal dollars and reduce procurement burdens. No votes or hearing testimony are provided, so there is no recorded opposition or amendment activity in the supplied materials. The overall tone of the bill is pragmatic and supportive of transit access, administrative simplification, and infrastructure modernization in underserved areas.

Contention

The main potential points of contention are the increased federal operating share for rural transit, the mandatory Tribal set-aside, and the expansion of procurement authority to local governments and nonprofit cooperative purchasing entities. Some stakeholders may question the fiscal impact of higher federal cost shares or the administrative feasibility of reserving funds when eligible applications are limited. Others may focus on whether the new procurement flexibility and regulatory-relief process could reduce oversight or create uneven implementation across states and transit agencies. However, no specific objections are documented in the provided record.

Companion Bills

No companion bills found.

Previously Filed As

US SB052

Coal Transition Community Investment

US HB8102

Workforce Investments Accountability Act

US SB1603

Preserving Rural Housing Investments Act

US SB502

Rural Hospital Closure Relief Act of 2025

US HB3684

Save America’s Rural Hospitals Act

US HB3978

Revenue and taxation; Oklahoma Rural Jobs Act; tax credits; capital investments; effective date.

US HB6240

Rural Hospital Closure Relief Act of 2025

US SB933

NASA Transition Authorization Act of 2025

US HB3227

Farm Workforce Modernization Act of 2025 Strategy and Investment in Rural Housing Preservation Act of 2025

US SB335

Rural Hospital Support Act

Similar Bills

No similar bills found.