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Public Transportation (Rail, Intercity Bus, Public Transit, and Marine Revenue) and Aeronautics funding

The total federal and state Public Transportation Program funding, which includes local bus, intercity bus, marine passenger, vanpooling, port, freight rail, and passenger rail, is $3.6 billion for FY 2025-2029. Estimates for Public Transportation include two percent growth in Federal Transit Administration (FTA) formula and discretionary funds, a one-time state General Fund allocation of $11 million for public transit and rail, one-time federal American Rescue Plan Act of 2021 (ARP) allocation of $20 million for public transit, and a state unreserved fund appropriation of $30.4 million. For rail, the BIL provides competitive funding opportunities for passenger, crossing, freight, and port projects but no ongoing federal revenue other than for grade crossing safety programs. Federal revenue for Aeronautics is estimated based on funding levels from previous years, as a new authorization act from the Federal Aviation Administration (FAA) is yet to be approved. The CTF is the primary source of state funding for capital and operating expenses in the Public Transportation Program, and the FY 2024 budget includes a 5.8 percent decrease in CTF from FY 2024 program levels and 1.9 percent less in FY 2026-2029 than 2025 due to static state sales tax distributions and no unreserved CTF fund balance in future years. New CTF revenue for FY 2026 increases by 2.3 percent, while FY 2027-2029 CTF revenue is projected to have a growth rate of 2.1 percent.

The total federal and state Aeronautics Program is $1 billion for FY 2025-2029. Federal revenue for Aeronautics is estimated on funding levels from previous years, as a new authorization act from the Federal Aviation Administration (FAA) is yet to be approved. Aeronautics state revenue comes from the State Aeronautics Fund (SAF), which comes from sales tax and excise tax on aviation fuel and the Airport Parking Tax. The APT will sunset once the debt service on bonds it supports are repaid in 2032. State funding for Aeronautics is currently insufficient to support the match requirements for all available federal funding as well as other programs not eligible for federal grants.