The Maximizing Transportation Efficiency Act establishes new federal support for transportation demand management (TDM) strategies—programs that encourage people to use transportation more efficiently through carpooling, vanpooling, transit use, telecommuting, and other alternatives to single-occupant vehicles. The bill adds TDM as an eligible activity under several major federal transportation funding programs, including the Congestion Mitigation and Air Quality Improvement Program and the Infrastructure Investment and Jobs Act. It creates two new $20 million annual grant programs: one specifically for rural areas to improve mobility and job access in communities with limited transportation options, and another to help smaller cities (removing the current 1 million-population threshold) fund congestion relief projects costing between $500,000 and $10 million. Eligible recipients include state departments of transportation, local governments, tribal governments, transit agencies, and nonprofits. The bill aims to address rural transportation challenges while reducing the estimated $74 billion annual cost of traffic congestion nationwide.
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