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S 9946

Establishes the New York state transportation modernization grant program and the transportation modernization advisory committee; appropriation

2025 Regular Session Introduced by Kevin Parker

Establishes a $15M upstate Transportation Modernization Grant Program to fund innovative, cost-saving student transport with grants for eligible parents and entities.

REFERRED TO FINANCE
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Bill Summary · S 9946

Summary of Bill S.9946 (2025-2026) – New York Transportation Modernization Grant Program

Proposed by Senator Parker; referred to Finance (April 16, 2026)

Purpose and Intent

  • Establishes the New York State Transportation Modernization Grant Program (the “grant program”) within the Education Department.
  • Aims to improve the efficiency, accessibility, and reliability of student transportation services in upstate New York.
  • Creates a framework for grants to parents of students and eligible entities (e.g., school districts, charter schools, child care providers, non-profits, and other eligible groups) to support transportation innovations and cost-effective solutions.

Key Provisions

1) Definitions (Part 3-A, Section 3639)

  • Defines terms used in the program including:
    • Eligible entity: a broad category including counties, cities, towns, school districts, charter schools, child care providers, boards of cooperative educational services, non-profits, and others deemed eligible by the advisory committee.
    • Upstate New York: excludes New York City and certain large counties (Bronx, Queens, Kings, New York, Richmond, Nassau, Suffolk, Westchester).
    • Transportation modernization grant program and advisory committee: as established in the bill.
    • Parent: as defined by applicable education law.

2) New York State Transportation Modernization Grant Program (Section 3639-a)

  • Establishment: The Department of Education will administer a grant program to modernize student transportation in upstate New York.
  • Eligible recipients and grant amounts:
    • Parents of students attending a public or charter school in upstate New York may apply for monthly transportation grants up to $80, subject to certain conditions; exceptions allow higher grants for families meeting specific criteria or circumstances (see below).
    • Conditions for parent grants:
    • The child attends a public or charter school.
    • Household income is at or below 300% of the federal poverty level (adjusted annually for household size) or the parent resides within 15 miles of the school district boundary and public transportation to the school is not available.
    • Higher grant amounts may be approved for parents transporting more than one student, subject to advisory committee review.
  • Eligible entities (upstate) may apply to participate and use grants to support innovations such as:
    • Transportation resource sharing with neighboring districts or schools (routing, shared services, joint agreements).
    • Partnerships with transportation network companies (as defined by law).
    • Cost reduction and efficiency improvements (e.g., fleet use alternatives to buses, neighborhood carpooling).
    • Addressing transportation personnel shortages or workforce challenges.
    • Partnerships with other eligible entities to optimize routes and reduce ride times while maintaining safety.
  • Restrictions:
    • Grants cannot reimburse or support existing transportation programs, contracts, or agreements.
    • Misappropriation of funds can result in termination from the program.

3) Transportation Modernization Advisory Committee (Section 3639-b)

  • Composition (14 members appointed by the Governor):
    • Commissioner (chair) or designee.
    • Commissioner of Transportation or designee.
    • Two public school district representatives.
    • Two charter school representatives.
    • Two licensed childcare providers serving publicly funded students.
    • Two transportation planning/logistics experts.
    • Two parents of students eligible for the grant program.
    • Two representatives from community-based organizations with experience in student transportation access.
  • Responsibilities:
    • Review and evaluate grant applications and outcomes.
    • Develop recommendations to improve efficiency, reduce costs, and address workforce shortages.
    • Identify best practices in student transportation (including technology and alternative service models).
    • Prioritize grants for households at or below 300% FPL.
    • Approve additional transportation-related activities aligned with program goals.
  • Administrative functions:
    • Establish and manage an administrative office to process applications, disburse funds, and ensure proper use of grants.
    • Annual reporting due by August 1 to the Governor, Senate, Assembly, and Comptroller, including:
    • Transportation practices used by recipients.
    • List of recipients and grant amounts with purposes.
    • Number of students served.
  • Rulemaking and transparency:
    • Department, with DOT and advisory committee, to issue rules and regulations necessary to implement the program.
    • Public reporting of grant awards, participants, cost savings, efficiency, and student access.

4) Application Process (Section 3639-c)

  • Applicants (parents or eligible entities) must submit an application to the advisory committee, detailing:
    • How the grant will improve transportation access for students.
    • How it supports transportation innovations and efficiency.
  • The committee will rank applications based on cost-effectiveness, student safety, innovation, and demonstrated need.

5) Reporting Requirements (Section 3639-d)

  • Grant recipients must submit periodic reports detailing:
    • Number of students served and expenditure per student.
    • Geographic area and total mileage covered.
    • How funds were used and stakeholder involvement.
    • Any other information deemed necessary by the advisory committee.

6) Funding and Effective Date

  • Appropriation: $15 million is authorized and appropriated to the Department of Education from the General Fund for the grant program, available immediately for administering the program. Funds are to be used to modernize transportation services for public school districts, charter schools, and eligible entities in upstate New York.
  • Effective date: The act takes effect 90 days after enactment. Immediate authority to issue necessary rules and regulations to implement the act.

Who Is Affected

  • Upstate public school districts and charter schools.
  • Parents of students attending upstate public or charter schools (as beneficiaries of monthly transportation grants).
  • Eligible entities located in upstate New York (including non-profits and childcare providers) seeking to innovate or improve transportation services.
  • Transportation planning professionals, community organizations, and vendors involved in transportation networks or innovative mobility solutions.

Timeline and Process Highlights

  • Application window and annual reporting cycle are established by the advisory committee and future rulemaking.
  • Annual reporting deadline: August 1 each year.
  • Immediate availability of funds upon passage (subject to Comptroller audit/warrant processes).
  • Ongoing advisory committee oversight with ranking of applications and transparency reporting.

Potential Impacts

  • Increased access to transportation for students in upstate New York, particularly families near or below 300% of the federal poverty level.
  • Encouragement of innovative transportation solutions, including shared services, flexible routing, and partnerships with new mobility providers.
  • Potential cost savings and improved ride times for students through efficiency measures and workforce strategies.
  • Enhanced transparency and accountability through annual reporting and strict procurement/use requirements.

Note: The bill explicitly excludes use of grant funds to reimburse existing transportation programs or contracts, ensuring grants fund new innovations and efficiencies.

Compiled from official sources — confirm details with the bill’s official record.

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