Government Shutdown Follow-Up on Transit Impacts:

While Federal Transit Administration (FTA) grant processing was delayed, causing cash flow issues for small and rural agencies. Following the shutdown, Congress has restored full FTA operations. According to our sister organization, APTA reported that voters in Colorado, Michigan, North Carolina, New Mexico, and Washington supported measures that boost funding for public transit improvements, expansions, operations, and supporting infrastructure.13 out of 16 ballot measures passed, delivering over $11 billion to public transit, with an 81%-win rate. In total, this year, 16 out of 19 ballot measures passed, resulting in an 84%-win rate and $11,773,346,495 in public transit funding nationally.

SWTA Transit Agencies are urged to monitor ongoing Congressional negotiations, as future continuing resolutions or shutdown threats could again disrupt federal funding flows. SWTA will continue to provide updates on these and developing issues.  Along with state associations across the SWTA Nation, we will continue to press for multi-year funding certainty and increased investment in urban, tribal, and rural transit networks for all transit providers on a federal and state basis.

We project several key federal priorities for the coming year are expected to include:

• Reauthorization including discussion focused on increasing rural transit support, climate resilience, and zero-emission fleet transition.
• Proposed new grant programs for workforce development and transit-oriented development planning.
• Enhanced oversight and reporting requirements for recipients of federal transit funds.

For agency-specific impacts, consult your state association but several measures passed state legislators in 2025.  These include but are not limited to the following.

Louisiana: in 2025, LA legislative bodies maintained level funding for the state’s Public Transportation Fund, ensuring continued support for rural and urban transit agencies. While advocates pushed for increases, no significant new state appropriations for transit were enacted. Local lawmakers approved a one-time allocation of $4 million for the replacement of aging buses and fleet modernization, with a focus on New Orleans Regional Transit Authority (RTA) and Baton Rouge Capital Area Transit System (CATS).

Colorado: Beyond just funding, in six Colorado jurisdictions, voters took a major step by approving the creation of a Regional Transportation Authority (RTA) to meet the needs of a growing population. By establishing RTAs, these jurisdictions have created a governance structure that enables them to pool resources, share expertise, and jointly plan for the future of transit in their region. An RTA allows participating cities and counties to coordinate on key issues such as route planning, infrastructure investment, service frequency, and fare integration, resulting in a more seamless and efficient transit experience for riders across boundaries.

Oklahoma: In 2025, Oklahoma legislators continued to focus on improving rural and small urban transit. Funding for the Public Transit Revolving Fund held steady, with new proposals for pilot micro transit programs in Tulsa and Oklahoma City. HB 2931, which would provide tax incentives for employers offering transit benefits, advanced through committee but faces an uncertain Senate path. OK Senate Bill 562 also was passed and ratified by the Governor making an assault on a transit driver a felony in the state of OK.

Texas: The Texas Legislature remains focused on growing metropolitan transit. The 2025 budget preserved state transit allocations, with the Texas Department of Transportation (TxDOT) awarding additional grants for rural transit agencies. Lawmakers also introduced SB 1178, aimed at streamlining local transit planning and providing more flexibility for cities to use sales tax revenue for transit expansion. No new dedicated funding source was passed.

New Mexico: New Mexico’s 2025 legislative session saw bipartisan support for increased public transit funding, including $15 million earmarked for rural and tribal transit providers. Efforts to establish a statewide zero-fare pilot (HB 142) gained traction but stalled in the Senate Finance Committee. The state is also participating in a multi-state electric bus procurement program.

Arizona: Arizona passed a continuation of the Maricopa County regional transit sales tax, which ensures ongoing funding for Valley Metro. The legislature considered, but did not pass, a bill that would have required all new transit vehicles purchased with state funds to be zero-emission by 2030. Funding for rural transit remains a concern.

Kansas: Kansas extended its Coordinated Transit District program through 2027 and allocated additional funds to connect rural areas to major cities. The state DOT is piloting on-demand transit services in Topeka and Wichita. Legislative committees are reviewing recommendations for improved transit access for seniors and people with disabilities.

Arkansas: Arkansas lawmakers maintained level funding for public transit and expanded eligibility for non-profit providers to receive state grants. A bill permitting regional mobility authorities more flexibility in forming transit partnerships passed both chambers. Statewide, agencies are seeking more federal matching funds for fleet modernization.