The US Department of Transportation on the Surface Transportation Reauthorization Bill (Docket No. DOT-OST-202500468).

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY appreciates the opportunity to submit comments to the U.S. Department of Transportation (USDOT) regarding the upcoming surface transportation reauthorization, Advancing a Surface Transportation Proposal That Focuses on America’s Most Fundamental Infrastructure Needs (Docket No. DOT-OST-2025-0468).

Public transportation is the lifeblood of New York City’s economy and is inextricably tied to the health of the real estate industry. More than half of all trips to Manhattan’s Central Business District are made by transit, and our commercial office market, residential neighborhoods, and retail corridors all depend on a safe, reliable, and accessible transit network. High-quality public transit attracts investment, supports job creation, and sustains dense, walkable, mixed-use neighborhoods that are highly economically productive on a per square footage basis. When the system is well-funded and well-maintained, it enables the movement of millions of workers, customers, and visitors every day, and reliable public transit offers a cost-effective path for access to jobs and to support growing businesses. Conversely, underfunded or unreliable transit service harms the city’s competitiveness, constrains growth, and diminishes the value and vitality of neighborhoods.

The next surface transportation authorization presents a critical opportunity to modernize the federal approach to transit investment. While the federal program has historically focused on capital improvements, dedicated and predictable operating support is urgently needed to sustain and expand service. Without such funding, agencies cannot increase frequency, extend hours, address operator shortages, or reliably connect residents to jobs and essential services. For New York City, expanded operating support would help preserve the competitiveness of the nation’s largest transit system and ensure that the central economic engine of the state and therefore the top ranking state in GDP for the country remains accessible and connected.

Federal policy should ensure that transit projects can be delivered quickly and efficiently. Too often, transit expansions face greater federal scrutiny and higher local match requirements than highway projects, despite their economic, environmental, and social benefits. Aligning local match rates with those for highways and streamlining federal review would help deploy resources more rapidly, meetstrong local demand, and unlock new development potential in communities served by new or improved transit lines.

Moreover, the legislation should address New York's antiquated absolute liability law that drives up infrastructure costs in the state by incorporating H.R. 3548 sponsored by Congressman Langworthy. This legislation preempts New York State’s absolute liability law on federally funded projects. Alone among the 50 states, New York law utilizes absolute liability instead of contributory negligence to assess fault on construction injury accidents. By using this standard, insurance now accounts for about 10% of construction projects costs in New York, vastly higher than other states and wasting billions of dollars every decade. Moreover, without improving safety on New York construction sites, the law has resulted in fewer firms offering insurance and has instead spawned an alarming number of staged construction accidents seeking to take advantage of the absolute liability law. Like the 2005 Graves amendment concerning auto leasing, the time is right for federal preemption in this area through the Surface Transportation renewal.

Equally important is investing in the infrastructure that supports safe and efficient transit operations. Streets, stations, and surrounding corridors should be designed to prioritize transit riders through features like dedicated bus lanes, traffic signal priority, ADA-compliant access, and safe pedestrian and cycling connections. These improvements not only enhance mobility and safety but also catalyze real estate investment and economic development.

Finally, we urge USDOT to maintain a strong focus on repairing and upgrading existing infrastructure before expanding roadway capacity. A “fix-it-first” approach ensures that public dollars address the growing backlog of needed repairs for roads, bridges, and transit assets, supporting safety, reliability, and the market appeal of neighborhoods connected by dependable transportation.

The federal transportation program must recognize that strong public transit is essential to the health of the real estate sector and for the competitiveness of the New York City economy and its significant contributions to national wealth and productivity. By strengthening operating support, streamlining project delivery, and aligning investment with the needs of riders and the built environment, the next reauthorization can deliver the safe, efficient transportation network our economy requires to thrive.
Thank you for the opportunity to provide comments.

CONTACTS:
Maddie DeCerbo
Director of Urban Planning
Real Estate Board of New York
Mdecerbo@rebny.com