Senate Bill 2254 drew testimony that population changes reflected in the 2020 Census have moved Minot and Fargo into higher federal urban categories, producing a drop in federal transit formula funds for those communities. Sen. Josh Baucher, the bill sponsor, asked lawmakers to allocate a one‑time $5,000,000 grant to the cities of Minot, Bismarck, Grand Forks and Fargo so those communities can study and pursue an updated state funding formula for fixed‑route and paratransit systems.

Baucher told the committee the study would explore a funding approach that accounts for general ridership as well as the current focus in the state formula on riders who are seniors or disabled. He said a base grant plus a ridership component could be more equitable, and the one‑time funding would let cities stabilize service while the state studies long‑term options.

Speakers from the transit community and local stakeholders testified in support. Trevor Vanette, a public transit advocate, urged inclusion of appropriation chairs from human services in any study so medical transportation needs are considered. Cale Dunwoody of the Fargo‑Moorhead Chamber of Commerce emphasized the link between transit and workforce access. Former Horace mayor Corey Peterson described rapid local population growth and urged study of service to growing suburbs.

Committee members and witnesses discussed practical details: mounting vehicle costs (one city estimated a bus price rising from roughly $350,000 to nearly $700,000), aging fleets and the effect of higher fares on ridership — a dynamic where higher fares may reduce ridership and thus reduce federal funds tied to usage. The committee discussed whether the $5,000,000 request should be folded into the DOT budget or be a standalone appropriation.

No committee vote was taken on Senate Bill 2254 during the hearing. Members signaled interest in finding funding options — including the flexible transportation fund and motor vehicle excise tax allocations — and in coordinating a state study on an updated funding formula for fixed‑route and paratransit services.