Authority: Titles 33.2 and 58.1, Code of Virginia.

A.1. Except as provided in Item 435, the Commonwealth Transportation Board shall allocate all monies in the Commonwealth Mass Transit Fund, as provided herein and in § 33.2-1526.1, Code of Virginia. The total appropriation for the Commonwealth Mass Transit Fund is estimated to be $533,200,000 the first year and $544,900,000 the second year from the Transportation Trust Fund. From these funds, the following estimated allocations shall be made:

a. $111,700,000 the first year and $114,400,000 the second year to statewide Operating Assistance as provided in § 33.2-1526.1, Code of Virginia.

b. $77,500,000 the first year and $79,400,000 the second year from the Commonwealth Mass Transit Fund to statewide Capital Assistance.

c. $212,000,000 the first year and $217,100,000 the second year from the Commonwealth Mass Transit Fund to the Northern Virginia Transportation Commission to support the operating and capital costs of the Washington Metropolitan Area Transit Authority.

d. $27,400,000 the first year and $28,000,000 the second year from the Commonwealth Mass Transit Fund to the Transit Ridership Incentive Program.

e. $16,000,000 the first year and $16,300,000 the second year from the Commonwealth Mass Transit Fund to Virginia Railway Express Assistance.

f. $11,400,000 the first year and $11,700,000 the second year from the Commonwealth Mass Transit Fund to Special Programs.

g. Notwithstanding the provisions of paragraphs A.1.a-f of this item, prior to the annual adoption of the Six-Year Improvement Program, the Commonwealth Transportation Board may allocate funding from the Commonwealth Mass Transit Fund to implement the transit and transportation demand management improvements identified for the I-95 corridor. Such costs shall include only direct transit capital and operating costs as well as transportation demand management activities.

2. Included in this item is $1,500,000 the first year and $1,500,000 the second year from the Commonwealth Mass Transit Trust Fund. These allocations are designated for “paratransit" capital projects and enhanced transportation services for the elderly and disabled.

3. Included in this item is an amount estimated at $2,000,000 the first year and $2,000,000 the second year from the Commonwealth Mass Transit Trust Fund. These allocations are designated for federally mandated state safety oversight of fixed rail guideway transit agencies located in the Commonwealth.

4. Included in this item is $50,000,000 the first year as provided in Chapters 854 and 856 of the 2018 Acts of Assembly and $50,000,000 the second year from the Commonwealth Mass Transit Fund for the state match for the Passenger Rail Investment and Improvement Act (PRIIA) funding.

B. Funds from a stable and reliable source, as required in Public Law 96-184, as amended, are to be provided to Metro from payments authorized and allocated in this program and pursuant to §58.1-2295, Code of Virginia. Notwithstanding any other provision of law, funds allocated to Metro under this program may be disbursed by the Department of Rail and Public Transportation directly to Metro or to any other transportation entity that has an agreement to provide funding to Metro as deemed appropriate by the Department. In appointing the Virginia members of the board of directors of the Washington Metropolitan Area Transit Authority (WMATA), the Northern Virginia Transportation Commission shall include the Secretary of Transportation or his designee as a principal member on the WMATA board of directors.

C. All Commonwealth Mass Transit Funds appropriated for Financial Assistance for Public Transportation shall be used only for public transportation purposes as defined by the Federal Transit Administration or outlined in § 33.2-1526.1, Code of Virginia.

D. It is the intent of the General Assembly that no transit operating assistance funding, as provided in A.1.a. of this item, be used to support any new transit system or route at a level higher than such project would be eligible for under the allocation formula set out in § 33.2-1526.1 D. 1., Code of Virginia, beyond the first two years of its operation.

E. Distribution of Washington Metropolitan Area Transit Authority Capital Fund Revenues represents direct payments, of the revenue collected and deposited into the Fund, to the Washington Metropolitan Area Transit Authority for uses pursuant to Chapter 34 of Title 33.2, Code of Virginia.

F.1. Notwithstanding § 33.2-1526.1, Code of Virginia, total Virginia operating assistance in the approved budget for the Washington Metropolitan Area Transit Authority (WMATA) for fiscal year 2025 may increase from the total operating assistance in the prior year's approved WMATA budget by an amount determined to be appropriate by the Director of the Department of Rail and Public Transportation.

2. In making such a determination, the Director shall submit any recommendation to the Secretary of Transportation for approval no later than July 31, 2024. As part of any recommendation, the Director shall require WMATA to prepare and submit a corrective action plan including information as prescribed by the Director no later than November 30, 2024. If the total Virginia operating assistance in the approved fiscal year 2025 WMATA budget increases by more than the amount determined appropriate by the Director, or WMATA fails to submit a satisfactory corrective action plan to the Director, the Commonwealth Transportation Board shall withhold an amount equal to 35 percent of the funds available under § 33.2-1526.1 D. 4.

3. The corrective action plan shall include, at a minimum, (i) measures the Authority will take to reduce both its total costs and overhead costs, defined as general administration and non-vehicle maintenance costs, on a per vehicle-revenue-mile basis for both rail and bus service to at least the median of the largest agencies providing service in the cities of Boston, MA; Chicago, IL; New York, NY; Philadelphia, PA; San Francisco, CA; and Washington, DC; (ii) measures the Authority will take to size employee headcount relative to ridership and vehicle-revenue miles to the median of the above systems; and (iii) a detailed timeline providing for the automation of the Metrorail system, including expected timelines for achieving grade-of-automation levels three and four as defined by the International Public Transit Association.