House Passes Bill to Double Transit Subsidy for Workers

Categories: Pay

The House this week passed legislation that would increase the transit subsidy from $130 to $250 per month for workers whose employers offer transit subsidies, including federal employees. The measure, which would be retroactive to the start of 2014, is part of a larger package of tax provisions that now goes to the Senate for approval. The transit subsidy had been cut nearly in half from $245 to $130 earlier this year. The parking subsidy, however, was increased slightly to $250 a month, providing a perverse incentive for employees to ditch the subways and buses for cars.

“I applaud the House of Representatives for passing a measure that will retroactively provide federal employees and all American workers with a much larger mass transit benefit for 2014,” said AFGE President J. David Cox Sr. “Millions of employees count on these subsidies to offset the cost of commuting to and from work each day, doing so in a way that eases traffic congestion and improves the environment.

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