AN ACT to create a rural commuter microtransit pilot grant program.

The General Assembly of North Carolina enacts:

SECTION 1.  The Department of Transportation, Division of Integrated Mobility, shall establish the Rural Commuter Microtransit Pilot Grant Program for the purpose of providing public transportation in rural counties.

SECTION 2.  The following definitions apply in this act:

(1)        Rural county. – A county with 250 people or fewer per square mile.

(2)        Rural microtransit. – A public car or shuttle service operating in a rural county.

(3)        Service operation. – The loading and unloading of passengers in a rural county.

SECTION 3.  The following entities shall be eligible to receive a program grant:

(1)        Counties.

(2)        Regional councils of government.

(3)        Municipalities with agreements with rural county governments or regional councils of government.

(4)        Regional transit authorities with agreements with rural county governments or regional councils of government.

SECTION 4.  The following are the eligible uses for the program grant:

(1)        Rural microtransit system that addresses workforce mobility and commuter needs in rural areas during peak hours and must include a minimum twenty percent (20%) employer contribution.

(2)        General use microtransit during off‑peak hours including on‑demand shuttle use for the elderly, families with children, and individuals with disabilities that prioritizes medical appointments and grocery shopping.

SECTION 5.  A program grant must include a minimum fifty percent (50%) local match which can take the form of reimbursements to local citizens.

SECTION 6.  The Division shall establish procedures and adopt rules for allocating grant funds that evaluate need, scalability, feasibility, and community partnerships.

SECTION 7.  There is appropriated from the Highway Fund to the Department of Transportation, Division of Integrated Mobility, for the 2026‑2027 fiscal year the sum of thirty million dollars ($30,000,000) in nonrecurring funds for the purposes of this act.

SECTION 8.  This act becomes effective July 1, 2026.