This bill requires any state or local government receiving federal funds to operate microtransit services to contract with private companies rather than providing those services directly. Microtransit refers to flexible, on-demand transportation using smaller vehicles like vans or shuttles. The legislation mandates that governments use a fair, competitive bidding process that prioritizes efficiency, cost-effectiveness, and service quality, with preference given to small or disadvantaged businesses and local operators when possible. The bill establishes reporting requirements and allows the Secretary of Transportation to suspend federal microtransit funding if a state or local government fails to comply. The law would take effect 180 days after passage, giving states and localities six months to implement the contracting requirement.
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