Congress funds public transit without privatization trap
S. 3455 — Moving Transit Forward Act of 2025 · Filed by Chris Van Hollen (D-MD) · 12 cosponsors · Introduced Dec 11, 2025 · Referred to committee
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What it does
This bill creates a new federal grant program (Section 5308) that gives money directly to public transit agencies in cities to improve bus and train service, enhance security, and address safety risks. Transit agencies get funding based on their operating costs, can use it to run more frequent service or hire security staff, and must match 20% of costs with local money—but cannot use the funds to replace public transit workers with private contractors.
Why we flagged it
The bill's core function is appropriating federal funds to improve urban public transportation service frequency, quality, and security through formula-based grants to transit agencies. It is straightforward infrastructure legislation with no hidden riders or narrow beneficiaries.
What the text implies
- The 10% flexibility clause (allowing urbanized areas to use up to 10% of Section 5336 apportionments under Section 5308 rules) may create accounting ambiguity and reduce transparency in how transit funds are actually deployed across categories.
- The explicit prohibition on using funds to transition to third-party on-demand contractors protects union transit jobs but may limit operational flexibility for agencies seeking to optimize service delivery in low-density areas.
The full analysis lists 3 implications of this text.
Who stands to gain
public transit agencies; transit workers (union protection); security and law enforcement contractors