The next reauthorization is an opportunity to get rural transit right

Transit is not (and never has been) exclusive to urban cities, and this upcoming reauthorization is another opportunity to create a transportation system that works for everyone, including those who live in more rural places. In order to ensure transit’s effectiveness in small towns and rural areas, we must both increase and streamline transit funding for these places to provide more frequent and responsive service.

T4’s policies to improve rural transit services

In our platform for reauthorization, under our core principle of “investing in the rest,” we have a goal to improve rural mobility by providing multi-year funding streams to support more effective transit in rural areas. We have three specific policy details there:

• Establish greater support for rural transit to ensure more efficient and frequent bus service. 
• Streamline transit funding from the FTA, VA, and HHS into a single program to ensure robust funding for rural communities. 
• Expand the clearinghouse created by FAST Act Section 3019 to include all transit agency procurement.

There are many misconceptions about rural areas and their transit options. It is assumed that everyone living in rural communities normally drives to reach their daily needs. However, more than one million rural households do not have access to a car, which means having to face additional challenges due to limited accessibility options. Rural counties have been facing hospital closures for years, and the recently signed budget reconciliation bill will put even more rural hospitals at risk, placing even more pressure on rural transportation networks.

When people in rural communities need to get to healthcare services, they must travel even further for these facilities (in addition to groceries, banks, schools, and other basic needs). As these trips get longer and the only option to reach them is to own and drive your own vehicle, it can result in growing isolation and even deferred regular healthcare. Transit is an essential component of mobility in rural areas. It doesn’t move the numbers or even the same share of people as in big cities, but it’s extremely vital for the people who do need it. 

Remove red tape to allow transit agencies the freedom to fund

First and foremost, we need to provide far more funding for transit in all community types, and that includes rural transit. Investing more money, especially in the area of transit operations, is vital to improve efficiency and ensure reliable services for states and localities. Farebox revenue is almost never a significant source of revenue for rural transit—it needs to be viewed as an essential public good and funded accordingly. Unlike large urbanized areas, smaller areas (under 200,000) are permitted to use a portion of federal funding for operating transit (instead of only capital expenses), so increasing formula funding for transit overall will provide the option of greater operations funding for these smaller systems.

On top of overall increased funding, one of the largest obstacles for rural transit agencies is untangling the many programs that fund transit. A robust rural transit program can achieve so much for rural communities, and even  a small amount of funding can go a long way in these areas. The difference can be between “I was able to go to all my doctor’s visits this year” and “it was too hard to get to the doctor this year for a checkup.” Simplifying and merging funding sources from differing agencies is a smart first step to make it easier for rural transit programs to secure the necessary funding to keep operating. 

Currently, there are scores of rural transit programs operated by an array of different federal agencies. The biggest share of federal funding for rural transit comes via rural formula grants for places with populations under 50,000, which are funded by the Highway Trust Fund and administered by the Federal Transit Administration (FTA). But there are also scores of other smaller transit programs run through departments outside of FTA. For example, the Department of Veterans Affairs (VA) offers financial support through the Highly Rural Transportation Grants (HRTG) to help veterans in rural areas access healthcare facilities, and the Department of Labor (DOL)’s rural transit aid includes the National Rural Transit Assistance Program and Promising Practices for Increasing Practice Access to Transportation in Rural Communities. 

Instead of a wild goose chase for multiple funding sources that require time, effort, and money to apply, all of these funding sources should be consolidated into one robust program under the FTA. This would make it exponentially easier and accessible for rural transit agencies to navigate funding for their communities and improve transit services. 

Lastly, rural transit agencies should not have to go through their state DOT to access the procurement clearinghouse created by the FAST Act to help transit agencies join together to purchase buses or vans to achieve economies of scale. When a transit agency wants to buy a new bus or a fleet of new buses, it can get a better deal by partnering with several other agencies interested in buying similar rolling stock from one manufacturer.  The FAST Act created a Joint Procurement Clearinghouse so that grantees can work together to purchase rolling stock (rolling stock includes buses, railcars, and ferries). But rural recipients of formula grants can’t directly access the clearinghouse—they have to go through their state DOT.  The eligibility for that clearinghouse should be expanded to include rural transit agencies so they can also save money on procurement. Doing so would provide opportunities to cut capital costs and use limited transit money more efficiently, getting more bang for the buck.

Looking ahead

Rural communities must not be forgotten when writing up the next reauthorization bill. These areas deserve reliable and frequent bus services and expanded transit options to move about freely in their areas, with or without a car. In order to circumvent the accessibility obstacles in rural areas, this upcoming reauthorization is another opportunity to ensure rural transit agencies are sufficiently funded to serve the needs of their communities. Rural areas deserve (and need) the transit attention that big cities receive. We must be inclusive and invest in these areas that are frequently left out of the transit conversation.