Skip to Content
Streetsblog California home
Streetsblog California home
Log In
Streetsblog USA

GOP Tax Cuts Threaten Funding for Transit, Biking, and Walking

The GOP’s tax overhaul overwhelmingly benefits the wealthiest Americans, and it could trigger major spending cuts. Chart: Economic Policy Institute

In the middle of the night on Friday, Republican Senators passed a bill overhauling America's tax code on nearly a strict party-line vote. Slashing taxes for corporations and the wealthy, the bill is projected to increase the national debt by $1.5 trillion over the next decade.

Among many other impacts, if the bill becomes law it threatens federal funds for transit, biking, and walking.

While the tax bill itself doesn't cut funding, a law already on the books triggers reductions in spending to offset losses of tax revenue.

For transportation, discretionary transportation programs like New Starts, which funds transit expansions, and TIGER, which has helped cities across the country build multi-modal projects, are especially at risk.

With $150 billion annually on the chopping block unless Congress changes course, even more of America's $50 billion surface transportation program could be targeted. That's because rather than raise the gas tax, Congress has been funding infrastructure using general fund money and various accounting gimmicks.

Transportation for America's Kevin Thompson said in a statement that the bill makes the chances of a federal infrastructure bill even more remote:

This tax reform measure triggers ten years of annual automatic cuts to transportation programs unless Congress takes further action, and it may also signal the final demise of a national infrastructure package. After creating more than a trillion dollars in new debt, it is difficult to fathom where this Congress will find the resources to pay for another trillion-dollar program.

To add insult to injury, the Senate bill eliminated the meager $20 per month in commuter benefits available to people who bike to work. People for Bikes' Tim Blumenthal wrote in a statement:

What is the Senate thinking? Why single out a modest incentive that encourages people to bike to work, increasing community health and reducing congestion, while maintaining a significantly larger and more expensive incentive for people to drive?

I believe that's known as Republican identity politics.

The tax bill still has to go to conference committee where differences between the Senate and House bills would get hammered out, and then go up for a vote in each chamber again. Or the House might rubber stamp the Senate version. Trump has said he wants to sign the bill before Christmas.

Stay in touch

Sign up for our free newsletter

More from Streetsblog California

First OC Streetcar Arrives

The $649 million 4.1-mile OC Streetcar light rail line is 92 percent complete, and now anticipated to open in spring 2026

May 8, 2025

Thursday’s Headlines

California and Trump continue to spar and more news from up and down the state.

May 8, 2025

Talking Headways Podcast: ‘Normal’ is Not Correct, Someone Died Here

After a crash, the debris is quickly cleaned up and everyone moves on (usually too quickly). But these two experts are asking us to all slow down.

May 8, 2025
See all posts