Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
SEPTEMBER 18, 2025
Subject
SUBJECT: AMERICA'S NEXT SURFACE TRANSPORTATION AUTHORIZATION LEGISLATION
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT the USA BUILD Initiative (Attachment A) as Metro's official proposal to Congress and the Executive Branch as they consider replacing the Bipartisan Infrastructure Law (BIL) (P.L 117-58) that will expire on September 30, 2026.
Issue
ISSUE
The current surface transportation authorization bill, the BIL, was signed into law by President Biden on November 15, 2021. The BIL expires in less than two years (September 30, 2026). Congress and the Executive Branch are seeking proposals for the next surface transportation authorization bill. Staff have generated the USA BUILD INITIATIVE, which provides detailed information on initiatives Metro would like incorporated into the bill set to be crafted by Congress later this year and next year.
Background
BACKGROUND
Historically, Congress has enacted multi-year surface transportation authorization bills that detail how much and in what manner the federal government will invest in and support the nation's highway and public transportation infrastructure. The most recent surface transportation authorization legislation, the BIL, provided a historic level of investment in both highway and public transportation funding. The BIL is set to expire in September of 2026. Congress has begun the often slow and arduous process of crafting a new bill.
Several key congressional committees will play a critical role in shaping the final bill that will be sent to the President. The House Committee on Transportation and Infrastructure will play a leading role in crafting highway and transit provisions. In the Senate, the work will be primarily divided between two committees, with the Senate Banking Committee holding jurisdiction over transit matters and the Senate Environment and Public Works Committee holding jurisdiction over highway programs. The Senate Commerce Committee will also be involved, given that it has jurisdiction over rail and safety matters.
Two congressional committees will determine how the federal government will finance the next surface transportation authorization bill. In the House, the House Committee on Ways and Means will craft the finance title for the final bill. In the Senate, the Committee on Finance will do the same. It should be noted that for nearly two decades, surface transportation authorization bills have relied on general fund transfers because the Highway Trust Fund (HTF) has become insolvent. This insolvency is directly tied to the fact that the federal gas tax of 18.4 cent per gallon has not been raised or indexed for inflation since 1993. According to a report issued by the Congressional Research Service, the BIL required "$118 billion in general fund transfers to the HTF to keep the fund solvent over the life of the act."
Discussion
DISCUSSION
Given Metro's strong and successful track record in providing Congress with policy and funding recommendations related to past surface transportation authorization bills, we look forward to advancing the proposals set forth in the USA BUILD INITIATIVE. These proposals, generated by various departments in the agency, are designed to enhance the mobility Metro provides across Los Angeles County. Previously, Metro launched surface transportation authorization initiatives, like the America Fast Forward and Rebuilding America, that demonstrably improved the ability to draw federal funds for the agency from the Transportation Infrastructure Finance and Innovation Act (TIFIA) program and improved the ability to advance Metro's policy priorities, like reforming federal Local Hire rules. The USA BUILD INITIATIVE outlines the agency's support for reforming several key federal transportation programs and is consistent with our agency's Board approved 2025 Federal Legislative Program.
A. The USA Build Initiative includes proposals to strengthen, reform and streamline the Federal Transit Administration's (FTA) Capital Investment Grant (CIG) Program and the Expedited Project Delivery (EPD) Pilot Program. The FTA's CIG and EPD Programs have been essential in funding the expansion of Metro's transit network. In addition, the USA Build Initiative seeks to bolster the utility of the FTA's Small Starts Program by boosting the federal share for projects from $150 million to $200 million.
B. The USA Build Initiative seeks to expand opportunities for the USDOT to provide funds for the 2028 Olympic and Paralympic Games, including permitting the Secretary of Transportation to expedite funding and assistance for the Games.
C. The USA Build Initiative seeks to safeguard the Local Hire reforms made through the Bipartisan Infrastructure Law.
D. , the USA Build Initiative seeks to increase federal funding for federal transit workforce safety programs.
E. Given our agency's national leadership on Workforce Development issues, the USA Build Initiative includes a set of recommendations to bolster federal workforce technical assistance programs and a proposal to include workforce development provisions in forthcoming USDOT grants.
F. The USA Build Initiative, consistent with the agency's proposed Center For Transportation Excellence, seeks to secure federal support for the domestic manufacture of bus and rail rolling stock.
G. Building on the success our agency lead in reforming the Transportation Infrastructure Finance and Innovation Act (TIFIA) program in MAP-21, the USA Build Initiative seeks to achieve further reforms, including making this federal financial tool more friendly for Transit Oriented Development projects.
H. Given the agency's support for commuter rail services provided by Metrolink, the USA Build Initiative seeks to expand the eligibility of commuter rail providers to secure funding through the Federal Railroad Administration's Federal-State Partnership Grant Program.
Staff looks forward to working with a broad range of stakeholders to build broad and sustained support for the provisions detailed in the USA BUILD INITIATIVE.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Given that federal funding is used to enhance our agency's state of good repair programs, along with other safety initiatives (grade-crossings), the failure of Congress and the Executive Branch to adopt a new surface transportation authorization bill would have negative impacts on our agency's safety programs.
Financial_Impact
FINANCIAL IMPACT
Metro's adopted budget for Fiscal Year 2025 (July 1, 2024, to June 30, 2025) documented that federal funding constituted $1.2 billion (13.5%) of the annual budget. The failure of Congress to adopt a new surface transportation authorization bill with funding levels at or above the authorized funding levels enacted in the BIL would have a negative impact on Metro's budget and compromise the agency's ability to advance several key work streams and meet our significant regional and local transportation objectives, including major capital projects that rely on federal funding.
Impact to Budget
Federal funding, both formula and discretionary, constitutes an important part of the agency's annual budget. The next surface transportation authorization bill is vital to ensuring the free flow of robust federal funding, both with respect to formula funding and discretionary funding. The bill will set forth the manner in which formula funding is apportioned across the United States, and it will also set the amount of funding set aside for key discretionary grant programs, like the FTA's CIG and EPD Programs
Equity_Platform
EQUITY PLATFORM
Securing high levels of federal transportation funding allows our agency to continue building capital programs that serve to enhance the mobility and quality of life for the ten million individuals who live, work and commute across Los Angeles County. Specifically, robust federal funding can serve to increase access to places of employment, healthcare centers, commercial facilities, and recreational sites, including but not limited to, community centers, sports venues, and arts and cultural centers.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro's significant investment in rail and bus transit.* The projects in this report have mixed outcomes, but on a whole, most of the projects in this report will likely decrease VMT in LA County. Metro's Board-adopted VMT reduction targets align with California's statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
Under some project scenarios, an increase in VMT can occur as enhanced transit accessibility stimulates new travel demand, potentially serving as a bridge to more sustainable travel patterns. Conversely, many projects are specifically designed to curb overall vehicle dependence-by providing robust mobility options, increased accessibility, sustainability, and bolstering safety, these initiatives ultimately drive a net reduction in VMT over time.
While individual projects may show variations-a localized rise in VMT in some cases and a decline in others, the comprehensive impact supports our strategic objectives. The suite of projects serves to not only meet current mobility demands but also foster long-term behavioral shifts away from high vehicle usage. Overall, the suite of projects is aligned with our commitment to enhancing transit accessibility, advancing environmental goals, and ensuring public safety. We are confident that this multi-faceted approach will yield a beneficial net effect on VMT.
*Based on population estimates from the United States Census and VMT estimates from Caltrans' Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Recommendation supports strategic plan goal #4.2: Metro will help drive mobility agendas, discussions, and policies at the state, regional, and national levels.
Alternatives_Considered
ALTERNATIVES CONSIDERED
Staff considered several alternatives in addition to advancing a proposal related to the federal government's next surface transportation authorization bill. Among the most prominent alternatives considered was to end the practice of advancing Metro's own proposal related to the crafting of the next surface transportation authorization bill and instead associate the agency with proposals being advanced by others, like the American Public Transportation Association (APTA). While staff is committed to continuing our collaborative work with other entities, like APTA and the California Transit Association, staff concluded that Metro is best served by having our own proposal tied to the next surface transportation authorization bill.
Next_Steps
NEXT STEPS
Should the Board approve the USA BUILD INITIATIVE, staff will promptly begin sharing the document with appropriate Congressional and Executive Branch officials, and key stakeholders from local, regional and national organizations.
Attachment
ATTACHMENT
Attachment A - USA BUILD INITIATIVE
Prepared by:
Prepared by: Raffi Hamparian, Executive Officer for Federal Affairs (213) 922-3769
Reviewed_By
Reviewed by: Nicole Englund, Chief of Staff, (213) 922-7950
Digitally approved by Stephanie Wiggins, Chief Executive Officer