Federal Microtransit Funds Must Go to Private Operators via Competition
This law mandates that state and local governments receiving federal money for flexible, on-demand public transport (microtransit) must contract out these services to private companies through a competitive bidding process. The goal is to boost competition, improve service quality, and increase efficiency in local transportation options for the public. Non-compliant governments risk losing their federal microtransit funding.
Key points
Local on-demand transport services (microtransit) funded by the federal government must be operated by private entities selected through competitive bidding.
The selection process must prioritize efficiency, cost-effectiveness, and overall quality of service for riders.
Governments that fail to contract out these services to the private sector will face suspension of their federal microtransit grants.
Status:
Expired
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