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Bill Summary · HB 1098

Summary of HB 1098 (Session 2025) — Rural Commuter Microtransit Pilot Grant (North Carolina)

Purpose and Intent

  • Establish a Rural Commuter Microtransit Pilot Grant Program within the North Carolina Department of Transportation (NCDOT), Division of Integrated Mobility.
  • The program aims to provide public transportation options in rural counties by supporting microtransit services that address workforce mobility, commuting needs, and access to essential services (healthcare, groceries, etc.) during peak and off-peak hours.

Key Provisions

Definitions (Section 2)

  • Rural county: A county with 250 or fewer people per square mile.
  • Rural microtransit: A public car or shuttle service operating in a rural county.
  • Service operation: Loading and unloading of passengers in a rural county.

Eligible Recipients (Section 3)

Grants may be awarded to:
1. Counties
2. Regional councils of government (COGs)
3. Municipalities with agreements with rural county governments or COGs
4. Regional transit authorities with agreements with rural county governments or COGs

Authorized Uses of Grant Funds (Section 4)

  • Rural microtransit for workforce mobility (peak hours): Must address workforce needs and include a minimum 20% employer contribution.
  • General-use microtransit (off-peak hours): On-demand shuttle services prioritizing:
    • Elderly residents
    • Families with children
    • Individuals with disabilities
    • Priorities include access to medical appointments and grocery shopping

Matching Requirements (Section 5)

  • Grants must include a minimum 50% local match. The act specifies that this match can take the form of reimbursements to local citizens.

Administration and Evaluation (Section 6)

  • The Division of Integrated Mobility must establish procedures and rules for allocating grant funds.
  • Evaluation criteria to consider include:
    • Need
    • Scalability
    • Feasibility
    • Community partnerships

Funding and Fiscal Note (Section 7)

  • ** appropriation**: $30,000,000 in nonrecurring funds from the Highway Fund for the 2026-2027 fiscal year, designated for the purposes of this act.

Effective Date (Section 8)

  • The act becomes effective July 1, 2026.

Who Is Affected

  • Rural counties meeting the defined criteria, plus regional councils of government, municipalities with appropriate agreements, and regional transit authorities working with rural jurisdictions.
  • Local employers, workers, elderly residents, people with disabilities, families with children, and residents needing access to medical appointments or groceries in rural areas (through funded microtransit services).

Timeline and Procedural Notes

  • Funding is provided for the 2026–2027 fiscal year as a one-time, nonrecurring appropriation of $30 million from the Highway Fund.
  • The Division of Integrated Mobility is tasked with creating the grant program guidelines and application procedures, including criteria for need, scalability, feasibility, and partnerships.
  • Effective date: July 1, 2026.

If you’d like, I can add a comparison to similar microtransit grant programs in other states or draft a quick one-page briefing for local government officials outlining steps to prepare grant applications.

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

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