Summary — S 3526: Mobility and Transportation Innovation Program (changes and appropriation)

Status: Referred to Senate Budget and Appropriations Committee (reported favorably by Senate Transportation Committee with amendments 9/30/2024). Introduced: June 28, 2024 (further referrals 1/28/2025).

Primary sponsor: Robert Ortt. Cosponsors: Patrick M. Gallivan; Robert Rolison. Companion/related bills: A4527, A4672; S6541 (prior session).

Main purpose

S 3526 converts the existing Mobility and Transportation Innovation Pilot Program into a permanent statewide program, expands the geographic scope beyond Mercer County, tightens eligibility and evaluation criteria for grants, adds reporting requirements, and appropriates $20 million from the General Fund to support the program.

Key provisions and changes

• Permanency and scope

  • Changes the “pilot” into a permanent Mobility and Transportation Innovation Program administered by the Department of Transportation (DOT).
  • Expands authority to award grants statewide (previously limited to Mercer County).

• Eligible recipients and uses

  • Grants to local government units (counties, municipalities, authorities, etc.) and transit agencies (public, private for‑profit, nonprofit, independent authorities).
  • Grants may fund new services, expansion of existing services, or matching requirements for federally eligible projects.

• Application and eligibility requirements

  • Projects must:
  • Enable low‑income persons, including those without smartphone access or a credit card, to use the services.
  • Include accessibility features for people with disabilities (e.g., wheelchair‑accessible vehicles and an accessible mobile application, as applicable).
  • Use innovative technologies/strategies that have demonstrated success in similar projects.
  • Meet any additional DOT criteria.

• Evaluation criteria

  • DOT must consider, when selecting awardees, how projects:
  • Improve transit system performance;
  • Remove mobility barriers (disability, lack of personal vehicle);
  • Improve mobility in disadvantaged/underserved communities;
  • Accelerate deployment of advanced transit technologies (including shared‑use mobility);
  • Deliver economic benefits via enhanced mobility;
  • Improve safety by reducing collisions;
  • Improve environmental sustainability (e.g., reduce GHG emissions).

• Reporting

  • Requires DOT to submit a written report to the Governor and Legislature (initial report within one year and annually thereafter as reflected in committee amendments) describing each grant, award amounts, and program performance assessment.

• Appropriation

  • $20,000,000 from the General Fund to DOT to support the program (in addition to $2 million previously appropriated when the pilot was first established). The act takes effect immediately.

Fiscal impact

• Office of Legislative Services (OLS) estimate:
  • State expenditure increase of up to $20 million in year one (residual funds may be expended in later years if not fully spent in year one).
  • Corresponding local revenue increases (grants) and local expenditure increases up to $20 million (indeterminate thereafter).
  • No Executive Branch fiscal note included.

Who is affected / likely impacts

• Department of Transportation: program administration, selection, and reporting.
• Local government units and transit agencies statewide: eligible to apply for competitive grants to deploy or expand services and technologies.
• Riders and communities: potential increased access to transit—particularly low‑income and disadvantaged communities and persons with disabilities—and greater availability of non‑smartphone payment/access options.
• Broader impacts may include accelerated deployment of shared‑use and on‑demand mobility technologies, potential reductions in greenhouse gases and collisions, and localized economic benefits from improved mobility.

Procedural notes

• Reported favorably by the Senate Transportation Committee with amendments on 9/30/2024 (amendments clarified permanency, added annual reporting, corrected grammar, and updated title/synopsis).
• Referred to Senate Budget & Appropriations Committee; subsequently referred to Codes on 1/28/2025 per legislative action history.