Meadows Introduces Federal Transit Modernization Act

Statement

This week, Congressman Mark Meadows (R-NC) introduced H.R. 2363, the Federal Transit Modernization Act--a bill to allow transit agencies to partner with the private sector and save taxpayer dollars.

Section 5333(b) of 49 U.S. Code impedes transit agencies from pursuing competitive contracting with the private sector. Under this law, if a transit agency engages in competitive contracting that ultimately results in public sector employee layoffs, that transit agency could be forced to pay the terminated employees' salaries for up to 6 years. This amounts to an unnecessary financial burden that discourages agencies from working with the private sector. Rep. Meadows' bill would repeal section 5333(b) and eliminate this burden, allowing for better partnerships and creating an improved competitive contracting market.

Meadows released the following statement:

"It's simple: we have an outdated provision of federal law that is preventing our transit agencies, some in dire financial straits, from making sound financial decisions. Instead of being used to cut costs, spur innovation, and contribute to small business growth, taxpayer dollars are being misused to satisfy anti-growth regulations and special interests. That's a problem, and we have to address it. The Federal Transit Modernization Act will remove this outdated barrier and allow transit agencies the flexibility to more freely engage in competitive contracting--deciding for themselves how to best allocate grant funds and ensure taxpayers get what they're paying for."

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