Happy New Year! The new year presents a number of challenges to our industry, but at the same time also affords us an opportunity to shape public transportation policy for years to come.

As Congress reconvenes, members will immediately need to tackle several pressing issues: the Fiscal Year 2014 appropriations bills, the Commuter Tax Benefit, and the debt ceiling. The Senate began work late last year on a package of tax extenders, including an extension of the Commuter Tax Benefit. However, because the House was already out of session for the year, the Senate’s efforts were ultimately moot.

Extending the Commuter Tax Benefit at the same level as the parking benefit has been a popular topic in the news recently, and APTA is working to persuade Congress to act quickly to restore parity between the Transit Commuter and Parking Tax benefits. With the expiration of the most recent extension last Dec. 31, the commuter benefit plunged to $130 per month from $245 per month, while the parking benefit actually increased to $250 per month.

Since it is administratively impossible to enact the commuter benefit retroactively at the higher level—in fact, it can take up to two months to process changes—it could be months before public transit riders see the restored benefit even if Congress acted today. While there might be room in a new surface transportation authorization bill for a permanent extension of the commuter benefit, APTA continues to urge Congress to immediately restore the commuter benefit and blunt the effects of increased out of pocket expenses for public transit commuters.

The public transportation industry has also urged Congress to extend the Alternative Fuels Tax Credit. While this credit also expired Dec. 31, it can, and should, be restored retroactively. Transportation providers depend on the credit to help offset the cost of transitioning their vehicles from diesel to compressed and liquefied natural gas. Without the credit, many—if not all—public transportation providers would be unable to afford the changeover.

While Congress passed a two-year budget resolution in December, which sets spending limits for the remainder of FY2014 and for FY2015, final appropriations legislation must also be passed prior to the Jan. 15 expiration of the current Continuing Resolution. No major details on appropriations have been released, but Congress is expected to approve an omnibus appropriations act prior to the deadline. With the budget resolution providing relief from sequestration cuts, APTA is confident that Congress will pass a spending bill to fund the federal government through the remainder of FY2014.

Congress must also address the newest debt ceiling crisis. The debt ceiling—the limit on debt accruable by the U.S. Treasury—is expected to be breached this February. The path to solving the debt ceiling problem is murky and will require the bipartisan efforts that saw the budget resolution successfully pass. Conversations are underway, but details are scarce.

In early December, APTA’s members successfully adopted a new set of guiding principles and recommended programmatic changes for the next surface transportation authorization bill. MAP-21 expires at the end of the current fiscal year, but APTA is prepared to recommend key changes for the next authorization bill. As Congress begins working on a new bill, APTA members and staff will contact key congressional committees to express the industry’s views on MAP-21 and actively advocate for modifications that will have positive impacts on public transportation.

Of the major issues related to the next authorization, none has been more talked about, and likely none is more important, than funding the Highway Trust Fund (HTF). While the exact timeline is unknown, sometime in early FY2015, the HTF and the Mass Transit Account will run out of money.

Numerous factors got us to this point, but unless a funding solution is found, neither the highway nor the public transportation program would be able to fund any new spending beyond current obligations in FY2015. This would likely mean a cessation of large numbers of bus and rail routes and all new construction projects. This would have dire effects on both the public transportation industry itself and related industries.

With the new budget agreement giving Congress room to maneuver, APTA continues to urge Congress to find a funding solution for the HTF sooner rather than later. Like the Commuter Tax Benefit, this is an issue that cannot wait until the last minute, nor can it be fixed retroactively. APTA is working with its members, industry partners, and Congress to find a workable solution that not only can fund existing federal public transit and highway programs, but also support their expansion, improvement, and innovation.

The final major item we face this year—the mid-term elections—is largely out of our hands, but they will surely alter how Congress approaches finding solutions to the issues facing public transportation. Our industry depends on stability, and, given the magnitude of these issues, we urge Congress to find workable, bipartisan solutions quickly.

To lend their voice to APTA’s advocacy efforts, public transit advocates can join the Voices for Public Transit campaign or they join the National Alliance for Public Transportation Advocates.