BUILD Act Transit Cuts Could Devastate Rural Lifelines — Idaho, Maine, Indiana At Risk

Jeremy Maxand, executive director of Living Independent Network Corp., helps people without cars get around southern Idaho. His nonprofit — which serves people with disabilities — receives $100,000 annually from the state through a federal appropriation that funds transit payment cards. Maxand calls local transit a "bare-minimum lifeline service" and warns it could get worse if federal funding falls.

What’s at Stake

The surface-transportation programs created by the $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) are set to expire at the end of the year. Congress is negotiating the bipartisan BUILD America 250 Act to reauthorize those programs. Transportation advocates say the IIJA did not do enough to expand mobility beyond cars, and they argue the proposed BUILD bill would be a step backward.

Under the BUILD Act, public transit authorization would fall by $16.5 billion over five years: $103.3 billion versus the IIJA baseline of $119.9 billion, according to the American Public Transportation Association. When inflation is taken into account, the Urban Institute says the BUILD Act would need roughly $24 billion more to match the prior law’s real-dollar level. The Urban Institute also estimates every state would receive at least $10 million less in federal formula transit funding over the five-year period.

Rural Systems Face the Biggest Risk

"There would be a large decline in funding for public transit, and that would especially be true for projects that require what's called capital investment funding — projects that require major investments for new lines," said Yonah Freemark of the Urban Institute. He emphasized that cuts would extend beyond big-city subways: millions in smaller cities, rural counties and tribal areas rely on federal dollars more heavily than many urban agencies do.

"When the federal funding goes away, everything goes away." — Jeremy Maxand, Living Independent Network Corp.

Many transit agencies are still recovering from pandemic-era ridership declines and years of underinvestment. Advocates warn that deeper federal reductions could force service cuts, delayed vehicle purchases, and longer waitlists — outcomes that would hit seniors, people with disabilities, low-income riders, and rural communities hardest.

State-Level Impacts

The Urban Institute projects Idaho would see the largest percentage decline in federal formula transit funding (about 18%). Maine would face roughly a 16% drop; the state depends on the federal government for about 38% of its transit funding and is already coping with an estimated $400 million transportation shortfall after years of declining gas-tax revenue.

In Indiana, transit planners warn that agencies such as IndyGo could delay bus purchases and rely on older, less reliable vehicles. Rural providers are often oversubscribed: in Hamilton County, Indiana, reservation-based services can have waitlists measured in weeks.

Urban And National Consequences

The effects would not be limited to rural areas. The Urban Institute estimates New York City could lose roughly $2.3 billion over five years; Representative Jerry Nadler opposed the bill in committee, saying it favors highways over transit and rail.

Policy advocates argue that stronger federal investment in transit yields broad benefits — reduced congestion, improved safety, and better access to jobs and services — and that current proposals underdeliver. LeeAnn Hall of the Alliance for a Just Society warns that reduced transit service could force households to buy additional cars, increasing costs for gasoline, insurance, parking, maintenance and repairs.

As fuel and operating costs rise, Maxand says modest regional services are becoming more expensive to run and that cuts would disproportionately harm the most vulnerable riders. "It's like saying you're not going to pay for electricity to power the ventilator, but you're going to leave the ventilator," he said. "What are we doing here? This is not sustainable."

This story was originally published by Grist with the headline "Federal transit cuts could hit rural America hardest" on Sep 18, 2026.