WASHINGTON, D.C. — U.S. Sens. Dave McCormick, R-PA, and Tammy Duckworth, D-IL, introduced bipartisan legislation Friday that would raise a federal transportation bond limit by $15 billion and expand eligibility to buses, railcars, ferries and more passenger rail projects.
The Transit for Urban Renewal and Business Opportunities Act, or TURBO Act, would increase the national cap for private activity bonds supporting qualified highway and surface freight transfer facilities from $30 billion to $45 billion.
Private activity bonds are tax-exempt debt issued by state or local governments on behalf of private entities for projects serving a public purpose. The U.S. Department of Transportation’s Build America Bureau administers the program, which is used to attract private investment through public-private partnerships.
The existing $30 billion allocation has been exhausted, according to the senators, leaving new transportation projects without access to the financing unless Congress expands the program.
The bill would also allow mass commuting facility bonds to finance rolling stock, including buses, railcars and ferries. Existing rules generally cover construction of transit infrastructure but exclude vehicle purchases.
Another provision would lower the qualifying speed for passenger rail projects from 150 mph to 110 mph, potentially opening the financing program to intercity rail services operating on shared freight corridors.
McCormick framed the proposal as an effort to remove financing constraints on transportation projects in Pennsylvania and nationwide.
“By expanding capacity and cutting outdated red tape, we can unlock more private investment in Pennsylvania and across the country,” McCormick stated.
Duckworth argued that local governments need broader financing options to replace aging vehicles and address deferred infrastructure work.
“Our bipartisan bill would help state and local governments supercharge their infrastructure financing — enabling them to deliver faster on projects, replace old buses, improve inter-city passenger rail and more,” Duckworth stated.
Congress established the transportation private activity bond category in 2005 with a $15 billion ceiling. The Infrastructure Investment and Jobs Act doubled the cap to $30 billion in 2021.
SEPTA General Manager Scott A. Sauer indicated the proposal could provide another financing option as the agency confronts the cost of replacing four aging rail fleets.
“While there is no substitute for dedicated federal investment in the nation’s critical transit infrastructure, the financing modernization provisions in the TURBO Act could give SEPTA access to additional financing options,” Sauer stated.
The Pennsylvania Public Transportation Association and Pittsburgh Regional Transit also endorsed the measure, citing potential benefits for fleet replacement and long-term capital investment.
The bill would expand financing authority but would not directly appropriate federal money for individual transportation projects. It must pass both chambers of Congress and receive presidential approval before becoming law.
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