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<bill bill-stage="Introduced-in-Senate" dms-id="A1" public-private="public" slc-id="S1-MIR26333-FCP-HF-9HC"><metadata xmlns:dc="http://purl.org/dc/elements/1.1/">
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<dc:title>119 S3978 IS: Investments in Rural Transit Act</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2026-03-03</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">II</distribution-code><congress>119th CONGRESS</congress><session>2d Session</session><legis-num>S. 3978</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20260303">March 3, 2026</action-date><action-desc><sponsor name-id="S394">Ms. Smith</sponsor> (for herself, <cosponsor name-id="S381">Mr. Rounds</cosponsor>, and <cosponsor name-id="S354">Ms. Baldwin</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSBK00">Committee on Banking, Housing, and Urban Affairs</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To increase the Federal operating share for rural transit, and for other purposes.</official-title></form><legis-body display-enacting-clause="yes-display-enacting-clause"><section section-type="section-one" id="S1"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote><short-title>Investments in Rural Transit Act</short-title></quote>.</text></section><section commented="no" display-inline="no-display-inline" id="id71fa43f702474f54864391beaf4124ae"><enum>2.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text><paragraph commented="no" display-inline="no-display-inline" id="id34259bbb689f4c8282113a457809d15f"><enum>(1)</enum><header>Administration</header><text>The term <term>Administration</term> means the Federal Transit Administration.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idead22cf19b3a415e94aaee51de24e053"><enum>(2)</enum><header display-inline="yes-display-inline">Administrator</header><text>The term <term>Administrator</term> means the Administrator of the Administration.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8a3b7e539875405e8b9c2fc705ce7883"><enum>(3)</enum><header>Rural area</header><text>The term <term>rural area</term> has the meaning given the term in section 5302 of title 49, United States Code.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2d3df2e4b22f4437a640aaa2d1e6294a"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Transportation.</text></paragraph></section><section commented="no" display-inline="no-display-inline" id="id2259c9dcad01401b914bfe11d7f68bb7"><enum>3.</enum><header>Procurement streamlining</header><subsection commented="no" display-inline="no-display-inline" id="id9a44d86ab7364bc69f9e6bfdd2f8be67"><enum>(a)</enum><header display-inline="yes-display-inline">Expansion</header><text>Section 3019(b) of the FAST Act (<external-xref legal-doc="usc" parsable-cite="usc/49/5325">49 U.S.C. 5325</external-xref> note) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="id3e76df305355493e92c4c89ccb464a8f"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(A)—</text><subparagraph commented="no" display-inline="no-display-inline" id="id158dfb70d1cc4fab8a12cf4e703af260"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i)(I), by inserting <quote>or local</quote> after <quote>State</quote>;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id792c95f3f42249f8a50dfcf744bd7e92"><enum>(B)</enum><text>in clause (ii), by striking subclauses (I) and (II) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0e9d58460de14243b1215e4feb6706a1"><subclause id="ida4623975d9ff4ddbad54b83ac1a2a01f"><enum>(I)</enum><text>a nonprofit cooperative purchasing organization that is not a grantee;</text></subclause><subclause id="id64474cc697e8473dbb105063370e5ad5"><enum>(II)</enum><text>a consortium of grantees; or</text></subclause><subclause id="id9fb5518afff54debaa4a17eb95a9dbdb"><enum>(III)</enum><text>a consortium of entities described in subclause (I);</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ide9edd1940f2a4a71abf7df916b48492e"><enum>(C)</enum><text>in clause (iii), by inserting <quote>or local</quote> after <quote>State</quote>; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18603d511f3b454ab71673bd182e2b7d"><enum>(D)</enum><text>by amending clause (v) to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idb33264fb263a416eba539846fa401f5b"><clause id="id7b1f281cb37c48a986dbe9213575b801"><enum>(v)</enum><text>the term <term>participate</term> means to purchase or procure under a cooperative procurement contract, using assistance provided under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49, United States Code—</text><subclause id="ida9d41808a7564546869ad72287aa48eb"><enum>(I)</enum><text>rolling stock and related equipment;</text></subclause><subclause id="id4dd70f2e03794d4f897a30bcaece4f89"><enum>(II)</enum><text>farebox equipment, software or technology; or</text></subclause><subclause id="idf9ab8b2556a34520acde8a7a4268db15"><enum>(III)</enum><text>other equipment or technology eligible for assistance under that chapter.</text></subclause></clause><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id49ebad18020a46de9ee0f0989ac11c06"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph commented="no" display-inline="no-display-inline" id="idb7d03c4935aa4856a149c8a33bc88295"><enum>(A)</enum><text display-inline="yes-display-inline">in the paragraph heading, by inserting <quote><header-in-text level="paragraph" style="USC">government, local government, or eligible nonprofit entity</header-in-text></quote> after <quote><header-in-text level="paragraph" style="USC">State</header-in-text></quote>;</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7b79504d08c2445b8a8999221a387b3f"><enum>(B)</enum><text>by inserting <quote>, local government, or eligible nonprofit entity</quote> after <quote>State government</quote> each place that term appears; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id90d74722a72042d38773270007a7069f"><enum>(C)</enum><text>by inserting <quote>or other equipment or technology eligible under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">chapter 53</external-xref> of title 49, United States Code,</quote> after <quote>related equipment</quote> each place that term appears.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5296a82a4eaa4efb87a64b887cabf569"><enum>(b)</enum><header>Recommendations</header><text>The Secretary, acting through the Administrator, shall—</text><paragraph id="idad961cc8fbbc4619922f0178513fe6cb"><enum>(1)</enum><text>establish a process to solicit feedback from grantees, State departments of transportation, and other relevant parties for improving and streamlining joint procurement and cooperative procurement and other strategies for improving rolling stock procurement and other procurements;</text></paragraph><paragraph id="ide3d18259e85048debcbbc105f6890320"><enum>(2)</enum><text>assess the feedback solicited under paragraph (1) and make advisory recommendations to improve and streamline—</text><subparagraph id="id5bd77b8e14124f00b87474079a751e13"><enum>(A)</enum><text>joint procurement;</text></subparagraph><subparagraph id="ide7cc16fd0c614b0f9be20d9df1d194c3"><enum>(B)</enum><text>cooperative procurement; or</text></subparagraph><subparagraph id="id15a7710d7c124acf923cff87ff3d9ffb"><enum>(C)</enum><text>other procurement strategies for rolling stock; and</text></subparagraph></paragraph><paragraph id="idbe495c88233f47979ff71c0b9aa9b881"><enum>(3)</enum><text>submit to Congress and make publicly available on the website of the Administration annual reports on advisory recommendations concerning procurement, including recommended statutory, regulatory, and or guidance changes and potential cost savings.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id43ac83d52dc045b2b8424fea98ee11d7"><enum>4.</enum><header>Amendments to mass transit</header><subsection commented="no" display-inline="no-display-inline" id="idde673ee062404f348dc98f021d9478d5"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/49/53">Chapter 53</external-xref> of title 49, United States Code, is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="ida1452cb078084f0fb96ce1274de65f84"><enum>(1)</enum><text display-inline="yes-display-inline">in section 5311—</text><subparagraph commented="no" display-inline="no-display-inline" id="idd8ad515a62a84d4c85ab80f58f3c2c1f"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (g)(2)—</text><clause commented="no" display-inline="no-display-inline" id="idf69e1a96a2264afb912f6be8f340dba0"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="USC">assistance</header-in-text></quote> and all that follows through <quote>subparagraph (B), a</quote> and inserting <quote><header-in-text level="paragraph" style="USC">assistance</header-in-text>.—A</quote>;</text></clause><clause commented="no" display-inline="no-display-inline" id="idf91d23ec65054d82a75852be3008d748"><enum>(ii)</enum><text>by striking <quote>50</quote> and inserting <quote>80</quote>; and</text></clause><clause commented="no" display-inline="no-display-inline" id="idd8147075b6b74d4e8a6e8510d7f8d3ad"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking subparagraph (B); and</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id672c4f46c0354caa972f4b54638de16f"><enum>(B)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id65d3fc25ec3b4bde886c279f09458571"><subsection id="idab672a73e30b4bbd938b55c6de4d9530"><enum>(k)</enum><header>Regulatory relief</header><text>The Secretary, acting through the Administrator of the Federal Transit Administration, shall establish a process to make recommendations to the Administrator regarding regulatory relief for recipients of assistance under this section, which shall include input from rural transit agencies, Tribal transit agencies, State departments of transportation, and other relevant parties.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="iddc96c7a4ca3948a79a884b1440072a06"><enum>(2)</enum><text>in section 5339(b), by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idd6a6d13631614f539493aa76f265c6ca"><paragraph id="idc8fd0eff093f4abc87a9d13c946d44a1"><enum>(12)</enum><header>Tribal projects</header><subparagraph id="id8d36d0d90ebe4b55b25c7f7e226597f3"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), not less than 5 percent of the amounts made available under this subsection in a fiscal year shall be distributed to Tribal transit agencies.</text></subparagraph><subparagraph id="idffe7ddef1b46483686a29fe4ef880dc7"><enum>(B)</enum><header>Unutilized amounts</header><text>The Secretary may use less than 5 percent of the amounts made available under this subsection in a fiscal year for the projects described in subparagraph (A) if the Secretary cannot meet the requirements of that subparagraph due to insufficient eligible applications.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idc29beb8eaee4416382ec61dd99c19c06"><enum>(C)</enum><header>Government share of costs</header><text display-inline="yes-display-inline">The Federal share of the cost of an eligible project carried out under this subsection shall be up to 100 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id6327e35440e947a49160f1fac3e592be"><enum>5.</enum><header>Associate Administrator for Program Management and Tribal Transit</header><text display-inline="no-display-inline">Not later than1 year after the date of enactment of this Act, the Secretary shall designate an Associate Administrator for Program Management and Tribal Transit within the Administration, who shall, in addition to any responsibilities assigned by the Secretary or the Administrator, focus on capacity-building, coordination, and technical assistance for Tribal transit.</text></section><section commented="no" display-inline="no-display-inline" id="id92e999aebb9c46b996bc54117b56f900"><enum>6.</enum><header>Joint review on low- to no-emission procurement opportunities in rural areas</header><text display-inline="no-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary and the Secretary of Energy shall consult with rural transit agencies, Tribal transit agencies, and other relevant parties and issue a publicly available joint report on opportunities to make the procurement of low- and no-emission infrastructure by rural transit agencies more efficient, in particular opportunities to collaborate with other public entities in the community, including school districts and municipalities.</text></section></legis-body></bill> 

