Senate considers extending transit benefits

Federal employees could continue to receive up to $230 in monthly transit benefits if Senate lawmakers approve proposed tax legislation.

Before the 2009 American Recovery and Reinvestment Act, both public and private sector workers were limited to $120 per month in transit benefits, which came from either pretax employee contributions or as reimbursement from employers. The stimulus package raised the benefits ceiling to $230 via a provision that expires on Dec. 31, and without congressional action the maximum amount will revert to $120. The Senate bill would extend the provision for an additional year.

The benefit applies to federal workers nationwide and to various types of transportation, including buses and car pools. Parking benefits will remain at $230 per month, regardless of current legislation. Each federal agency determines how much employees receive and how those benefits are distributed.

Advocates for the program say transit benefits are a valuable recruitment and retention tool and caution that the reduction could cause economic hardship for many employees.

"A great many federal employees across the country use public transportation to and from their work, and the increased maximum subsidy has been an invaluable help to them," said National Treasury Employees Union President Colleen Kelley. "I am pleased to see the Senate address this important issue."

The Senate is expected to vote on the bill early this week.