Update: Revised HEROES Act includes $32 billion for transit

Update: 10/01/2020 - The House has passed the revised HEROES Act with a vote of 214 to 207. The legislation faces a tough battle in the Senate and negotiations with the White House continue on the bill.

-------------------------------------------------------------

An updated version of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act was released Sept. 28. This updated version includes $32 billion for the transit industry and $2.4 billion for Amtrak.  

The rough breakdown of the bill’s $32 billion includes:

• $18.5 billion in Urbanized Area Formula Funds

• $2.5 billion for Capital Investment Grants program recipients

• $750 million for Rural Area Formula grants

• $250 million for Enhanced Mobility (paratransit) grants

• $10 billion in emergency relief grants

The revised HEROES Act calls for the urbanized, rural and paratransit formula funds to be allocated no later than 14 days after the bill’s enactment. The legislation will need to move through both chambers of Congress and gain the signature of the president first. 

The Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law in March carried a seven-day allocation deadline, half of what the HEROES Act would provide. The Federal Transit Administration had the CARES Act’s $25 billion in transit funds allocated in six days.

The revised HEROES Act would also provide Amtrak $2.4 billion to support operation of passenger service on the Northeast Corridor, state-supported and long-distance routes. Additionally, Amtrak workers would be protected from furloughs and prevent long-distance route reductions in service.

The HEROES Act was first introduced in May and included $15.75 billion for the transit industry. The legislation passed the House before stalling out in the Senate.

Democrats on the House Appropriations Committee said the revised $2.2 trillion legislation addresses “needs that have developed since the House passed an earlier iteration and reflecting negotiations between Democrats and Republicans.”

American Public Transportation Association (APTA) President and CEO Paul Skoutelas called the revised bill critical to transit’s survival.

“Without additional emergency funding, many public transit agencies will soon be forced to cut services and routes for essential workers and furlough their workers, leaving our communities without service and jobs when they need them the most,” explained Skoutelas.

He urged both chambers of Congress and the administration to take swift action to pass the revised HEROES Act.

“As the pandemic nears its seventh month, public transportation systems across the nation are facing urgent and dire situations. The industry continues to serve essential employees every day. As our nation’s transit agencies work to maintain essential services while restoring full services, federal support is paramount to ensuring that public transit agencies can survive and help our communities and nation recover from the economic fallout of the pandemic,” said Skoutelas.

The “urgent and dire situations” Skoutelas referenced include steep multi year deficits, reductions in service and deferred or cancelled capital projects.

APTA conducted a survey in early September of its transit agency and business members. The survey results found six in 10 public transit systems will need to reduce service and furlough employees in the coming months, nearly one-half of public transit industry businesses (47 percent) expect to lay off employees and nearly one-third of transit industry businesses (31 percent) are concerned that they may go out of business.

Without additional emergency funding provided to transit agencies, the APTA survey found 54 percent of the association’s business members will cut back hiring, 47 percent expect to lay off employees and 31 percent expect to furlough employees.