Mike Rounds

03/17/2026 | Press release | Distributed by Public on 03/17/2026 11:47

Rounds Introduces Legislation to Support Rural Transit

WASHINGTON - U.S. Senator Mike Rounds (R-S.D.) introduced the Investments in Rural Transit Act, legislation that would help rural transit providers improve their services. Rural transit operators provide essential lifeline services to millions of Americans, getting them to work, school, grocery stores, medical appointments and more.

"For rural South Dakotans who do not own a vehicle, transit services are a lifeline to reach their jobs, medical appointments, grocery stores and other necessities," said Rounds. "This legislation aims to support the operators who provide these essential services, so that they may continue to get our rural residents where they need to go."

"South Dakota's public transit providers face significant issues including Federal funding shortfalls, reduced local match, and lack of regulatory reform," said Barbara Cline, Executive Director of Prairie Hills Transit. "Public transit serves all citizens including workers, students, seniors, and individuals accessing medical care. We support the Investments in Rural Transit Act that allows continued access, independence, and economic participation across our communities."

Senators Tina Smith (D-Minn.) and Tammy Baldwin (D-Wis.) joined Rounds in introducing this legislation.

"High-quality, efficient public transit systems are important for Minnesotans who rely on them every day to get to the office, school, the doctor, and to make their lives work," said Smith. "This bipartisan legislation would support reliable public transit in rural communities where it's a lifeline."

"Whether you are in a big city or a rural part of our state, every Wisconsinite should have access to good public transit. Unfortunately, that is just not the case in too many places and limited transit options are a significant barrier for folks trying to get to work, the store, or the doctor," said Baldwin. "Our bipartisan legislation will invest in rural communities so workers and families are better connected to what they need."

Specifically, the Investments in Rural Transit Act would:

  • Increase federal share for operating costs. Current law allows federal funding to cover 50 percent of a rural transit provider's operating costs, such as fuel and labor. This bill would increase the federal share to 80 percent, providing relief to rural transit operators so they can improve their services.
  • Cut red tape. Rural transit providers are often small and efficient, but federal reporting requirements and other rules add significant administrative burdens to their operations without meaningful benefit. The bill directs the Federal Transit Administration (FTA) to work with rural transit agencies, Tribal transit agencies and state departments of transportation to recommend regulatory relief for these transit agencies.
  • Make procurement easier. Procuring new vehicles and equipment can be costly and complicated for rural transit agencies. Over the last several years, agencies have waited longer and paid more to purchase vehicles. The bill would allow transit agencies to partner in joint and cooperative procurements, saving money and easing the process for agencies and manufacturers alike. It also directs the Secretaries of Transportation and Energy to review opportunities for streamlining procurement of low- and no-emission vehicle infrastructure in rural areas.
  • Support Tribal transit agencies. The bill would also designate an Associate Administrator for Program Management and Tribal Transit to make certain Tribal transit is appropriately prioritized and elevated at FTA.

Click HERE for full bill text.

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