Teamsters Applaud Congress For Giving Transit Agencies Funding Flexibility

The Teamsters Union today praised Congress for supporting a provision in the recently passed Supplemental Appropriations Act that will allow up to 10 percent of funds received by transit systems from the American Recovery and Reinvestment Act of 2009 to be used for operating expenses.

Gas prices have pushed transit ridership to an all-time high, yet transit systems are being forced to cut services and lay off workers because of the recession’s impact on state and local government revenue. The economic stimulus legislation had provided $8.4 billion in funding for transit capital expenses, but none for operating expenses.

“It doesn’t make sense for transit systems to be able to buy new rail cars and buses when they don’t have the money to put them in service,” said Teamsters General President Jim Hoffa. “In today’s economy, more people are relying on public transportation to get to their jobs, to school and to their appointments and activities. Congress recognized the potential negative impact and took the appropriate action so that transit agencies can continue to provide consistent and reliable service.”

The funding flexibility provision was originally included by the Senate and was accepted in the conference committee. President Obama signed the bill into law earlier this week.

The International Brotherhood of Teamsters, which represents more than 20,000 transit workers throughout the country, was founded in 1903 and has more than 1.4 million members throughout the United States, Canada and Puerto Rico.