NTEU Leader Kelley Urges House To Extend Mass Transit Benefit

Press Release April 8, 2014

Washington, D.C.—President Colleen M. Kelley of the National Treasury Employees Union (NTEU) today urged Congress to quickly act to reinstate parity between the transit and parking portions of the federal commuter benefit and make it permanent.

In a statement submitted to the House Ways and Means Committee, Kelley emphasized NTEU’s view that “it certainly makes no sense for the government to provide workers using environmentally helpful mass transit a lesser benefit than those driving and parking personal vehicles.”

Because Congress failed to extend the transit benefit and keep it equal to the parking benefit prior to the end of 2013, the monthly maximum transit amount was reduced to $130 on Jan. 1, 2014. Even though that occurred, the monthly limit for the parking portion of the commuter benefit rose by $5, to $250 per month, due to an automatic bump up.

Kelley’s statement to the committee spoke favorably a provision included in a Senate package of tax extenders to reinstate parity in the transit and parking benefits through the end of 2015 as well as make it retroactive back to Jan. 1 of this year.

“Many working people who use public transportation to get to and from work rely on the transit benefit, which has provided much-needed relief in their commuting costs,” she said. “Many of these workers are struggling in the current economic climate, and a reduction in these benefits is imposing a severe financial burden on them.”

Not only that, she said, reinstating the monthly transit subsidy to a level equal to the parking benefit would encourage greater transit ridership, a development which helps lessen congestion on the roadways, reduces pollution and conserves energy.

As for a discussion of potential tax reform under review by the committee, the NTEU leader expressed her disappointment that it would freeze the parking and transit benefit amounts at their current levels and would prevent future adjustments for inflation.

“Simply codifying the current disparity between the transit and parking benefits in the tax code is just bad policy,” she said.

NTEU is the largest independent federal union, representing 150,000 employees in 31 agencies and departments.

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