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 $546,300,000 the first year and $546,300,000 the second year from the Transportation Trust Fund. From these funds, the following estimated allocations shall be made:

a. $122,200,000 the first year and $126,100,000 the second year to statewide Operating Assistance as provided in § 33.2-1526.1, Code of Virginia.

b. $70,000,000 the first year and $70,500,000 the second year from the Commonwealth Mass Transit Fund and $19,000,000 the first year from the general fund to statewide Capital Assistance. Of these amounts, $19,000,000 the first year shall be considered one-time.

c. $231,900,000 the first year and $239,300,000 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. $14,000,000 the first year and $15,000,000 the second year from the Commonwealth Mass Transit Fund to the Transit Ridership Incentive Program.

e. $17,400,000 the first year and $18,000,000 the second year from the Commonwealth Mass Transit Fund to Virginia Railway Express Assistance.

f. $11,000,000 the first year and $11,500,000 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 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 human services mobility programs.

3. Included in this item is an amount up to $1,500,000 the first year and up to $1,500,000 the second year from the Commonwealth Mass Transit Trust Fund. These allocations are prioritized for federally mandated state safety oversight of fixed rail guideway transit agencies located in the Commonwealth. After fully funding the federally mandated state safety oversight of fixed rail guideway transit agencies located in the Commonwealth, funding may be used for other programs and initiatives to improve safety on public transportation and rail services offered 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.  Of the amounts in the Transportation Partnership Opportunity Fund, up to $10,000,000 the first year is provided to support the demolition of a parking garage at the Huntington Metrorail Station. The funding is contingent on the commitment of local or regional resources sufficient to complete the demolition.

G.1 The Washington Metropolitan Area Transit Authority (WMATA) shall produce and make public (i) a 20-year, conceptual capital plan every five years beginning June 30, 2027, which will include an analysis of capital investments and other opportunities to be more cost efficient, (ii) a funding/financial plan for major projects with a capital cost greater than $300.0 million (adjusted for inflation), and (iii) an annual report on the performance of WMATA and its capital program, actual prior-year and anticipated next-year cost savings and cost efficiency efforts, and the use and outcomes of additional dedicated funding, if applicable.

2. The Department of Rail and Public Transportation shall review cost savings and cost efficiency efforts of WMATA. The Department shall report and provide recommendations to the Chairs of the Senate Committees on Finance and Appropriations and Transportation and the House Committees on Appropriations and Transportation Committees by October 15, 2026. WMATA shall provide any information and assistance to the Department.

H. The Department of Rail and Public Transportation shall evaluate the feasibility of consolidating DASH Alexandria Transit, Fairfax Connector, ART Arlington Transit, and CUE Fairfax City into a single, unified regional bus system. As part of this evaluation, the Department shall prepare and submit a comprehensive report assessing: (i) potential cost savings and long-term financial impacts; (ii) operational efficiencies and service improvements; (iii) rider and community input, including public feedback and consumer sentiment; (iv) potential challenges, implementation considerations, and legal or governance implications associated with consolidation; and (v) a review of comparable consolidation efforts in other states or metropolitan regions. The Department shall submit a report to the Chairs of the Senate and House Transportation Committees by December 15, 2026.

I. Out of the amounts included in this item, $153,000,000 the first year from the general fund is provided for the state share of additional operating assistance for the Washington Metropolitan Area Transit Authority (WMATA) throughout the biennium. The unexpended appropriation at the end of the first year shall not revert but shall be carried forward into the second year.