Federal Workforce Transportation
Federal Agencies Must Offer Tax-Free Transit Benefits to Workers
What it does
Federal agencies must implement tax-free transit and vanpool fringe benefit programs for eligible employees by October 1, 2000.
Real-world impact
- Allows eligible federal workers to exclude transit and vanpool costs from taxable wages.
- National Capital Region employees will receive transit passes approximating commuting costs.
- Transportation, Environmental, and Energy departments will run a three-year transit-pass pilot.
Topics
Summary
This order requires federal agencies to start a transportation fringe benefit program by October 1, 2000, letting eligible federal employees exclude mass transit and vanpool commuting costs from taxable wages. It also requires a transit pass program in the National Capital Region and orders several agencies to run a three-year transit-pass pilot.
The goal is to reduce traffic congestion and air pollution and expand commuting choices. Agencies must coordinate with Treasury and other federal offices and cover costs within the President's FY2001 budget request.
Questions, answered
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