In a significant policy shift, the Federal Transit Administration (FTA) has proposed to scrap the method of calculating the "social cost of carbon" in transit grants assessment. The change, announced by FTA Administrator Marc Molinaro, will impact the Capital Investment Grants (CIG) program, which is the government’s primary initiative for funding transit capital projects such as heavy and commuter rails, light rail, streetcars, and bus rapid transit systems. Molinaro cited directives from President Trump to empower American energy sectors as the driving force behind this decision.
"President Trump charged the Department of Transportation with unleashing American energy so we can lower costs and grow the economy," Molinaro stated, as reported by the official FTA press release. He further explained, "Under Secretary Duffy's leadership, we’re doing just that. These proposed actions remove unnecessary regulatory requirements and provide the best support possible for locally driven transit projects." The social cost of carbon previously included in the Environmental Benefits section of CIG Policy Guidance will now be replaced with a simpler, older methodology linked to the EPA's National Ambient Air Quality Standards (NAAQS).
The FTA is seeking public input on these changes to refine the CIG Policy Guidance. They have issued a Request for Information (RFI) to collect opinions on a broad update to the CIG program guidance slated for the future. Historically, the FTA is obliged by federal law to refresh the CIG Policy Guidance at least every two years.
Both the proposed interim guidance and the RFI were published for public commentary. Responses to the interim update are expected by September 2, 2025, while the RFI will accept feedback until September 18. This call for commentary represents a standard protocol in the federal rule-making process, allowing stakeholders and the public at large a voice in shaping the policies that govern their transportation infrastructure.
