Rep. Gillen Introduces Bipartisan Bill to Deliver Frozen Transit Funds Back to Long Islanders

WASHINGTON, DC - Today, Congresswoman Laura Gillen (D-NY-04) introduced the bipartisan bicameral COVID-19 Commuter Benefits Distribution Act alongside her fellow Long Island U.S. Representatives Tom Suozzi (D-NY-03), Andrew Garbarino (R-NY-02), and Nick Lalota (R-NY-01) to allow Long Island workers to recover their wages still frozen in commuter benefit accounts since the beginning of the COVID pandemic after many transitioned to remote or hybrid work. Some Long Island workers had thousands of dollars trapped in their commuter benefits accounts. U.S. Senator Kirsten Gillibrand (D-NY) introduced companion legislation in the Senate.

"As costs have skyrocketed, Long Islanders should be able to access the money they earned now, when they need it the most," said Rep. Gillen. "The pandemic changed how many people work and commute, leaving thousands of workers with funds trapped in their rigid transit benefit accounts. This bipartisan legislation provides a commonsense solution to fix our tax system and put workers' hard-earned money back in their pockets. I'm proud to work with my Long Island colleagues and Senator Gillibrand to deliver this overdue relief for Long Islanders."

"Fair is fair. Employees who set aside money for commuting shouldn't lose access to it because the pandemic upended daily life and forced them to work from home. This bill creates a commonsense fix to current IRS regulations so workers can access the money they earned," said Rep. Suozzi.

"Many workers saw their daily commutes disappear almost overnight during the COVID-19 pandemic, leaving them with commuter benefit funds they could no longer use," said Rep. Garbarino. "Those funds belong to the workers who earned them. I am proud to join my colleagues in introducing this bipartisan legislation to help commuters access their money and provide a commonsense fix to this problem."

"New Yorkers are facing absurdly higher prices due to the reckless actions of the Trump administration," said Senator Gillibrand. "This commonsense legislation will help support working families who are struggling to afford groceries, gas, and health care. I am proud to support this legislation and look forward to returning the transit benefits that are long overdue."

"It is long overdue that workers get an opportunity to get their money back that was set aside as a commuter benefit," said Larry Rubinstein, Vice Chair, Long Island Rail Road Commuter Council. "Right now, New Yorkers are still being restricted from their funds just because the pandemic changed how they commute. I fully support Congresswoman Gillen's bipartisan leadership in continuing this fight and introducing legislation to fix this nationwide issue. This bill will deliver money back into people's pockets."

Qualified Transportation Fringe Benefit programs help workers reduce commuting costs by allowing them to set aside pre-tax wages for transit and parking expenses. However, the COVID-19 pandemic upended traditional commuting patterns as offices closed, work shifted online and millions of employees stopped traveling to workplaces. As a result, many workers paid substantial balances into their commuter benefit accounts that they can no longer use for their intended purpose. Current law prohibited the funds from being withdrawn, refunded, or spent on anything else.

The COVID-19 Commuter Benefits Distribution Act would provide a temporary exception to current Internal Revenue Service (IRS) rules, allowing employees to finally access and pull the funds back out into their bank accounts as taxable income.

This bill has a longstanding history in New York's 4th Congressional District, having been introduced by the district's last two House representatives.

The full text of the bill is available here.

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