Gov. Josh Shapiro said Friday that he will divert more than $150 million in federal highway funding to provide a one-time injection of cash into Philadelphia’s mass transit system to help it avoid near-term service cutbacks and delay fare increases.
Shapiro's announcement comes as many transit agencies are in a severe financial crunch.Federal COVID-19 relief for transit agencies is phasing out and the Southeastern Pennsylvania Transportation Authority and other major transit agencies around the country are struggling to regain ridership after the pandemic.
Shapiro said shifting the federal highway funding won't jeopardize or stop any ongoing highway projects.Diverting highway funds is allowable under federal law. Former Gov. Ed Rendell did it in 2005 and 2010 to help transit agencies, while shifting the money is routine in some other states.SEPTA lost out on about $161 million when the Republican-controlled state Senate didn't go along with Shapiro’s proposal for $283 million in new state aid to public transit.
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