DOT Secretary Proposes Eliminating Federal Funding for Mass Transit and Bike Lanes

Transportation Secretary Sean Duffy has formally proposed eliminating the federal government's primary funding mechanism for public transit, urging Congress to redirect billions of dollars toward highway expansion and away from what he characterized as "DEI" infrastructure.[1]

The proposal, outlined in a July 22 letter to Senate leaders, targets the Highway Trust Fund's mass transit account, which was established in 1982 to ensure a dedicated revenue stream for public transportation. Duffy's plan would abolish the account entirely, a move the American Public Transportation Association warns would put more than 85% of federal transit and passenger rail funding at risk.

Beyond mass transit, the Department of Transportation is seeking to restrict competitive and formula grant funding for bicycle lanes, pedestrian safety projects, and electric vehicle charging infrastructure. The administration has explicitly targeted the "Complete Streets" program, arguing that investments in non-motorized transport reduce travel throughput for cars and contribute to congestion.[1]

The policy shift is already affecting local infrastructure projects nationwide. The DOT has begun rescinding previously awarded grants for road diets and bike lanes in cities across the country, citing their "hostile" impact on motor vehicles. The Federal Highway Administration has also removed bike lanes from its official list of proven safety countermeasures.

Duffy has framed the cuts as a necessary correction to prioritize core infrastructure, stating that the administration's focus is on repairing critical roads and bridges that connect Americans to jobs and bolster national security. In social media posts and official communications, the DOT has labeled bicycle lanes and climate-focused transit initiatives as "DEI" (diversity, equity, and inclusion) programs that waste taxpayer money.[1][2]

Transportation advocates and urban planners have strongly condemned the proposal, pointing to data that contradicts the DOT's claims. The League of American Bicyclists noted that the DOT's own historical research shows bike lanes can reduce all roadway crashes by up to 53% without increasing congestion.[1]

The financial rationale for the cuts is also facing scrutiny. An analysis by Transportation for America found that eliminating the mass transit account and transferring its funds to highways would only delay the Highway Trust Fund's projected insolvency by a single year, pushing it from 2027 to 2028.

The proposals set the stage for a contentious battle over the next surface transportation reauthorization bill, which Congress must pass to fund the nation's infrastructure for the next five years. With the current authorization expiring on September 30, lawmakers face a stark choice between the administration's car-centric vision and the multi-modal approach favored by transit advocates and many local governments.