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Intercity Transit joins suit over new FTA conditions; judge issues temporary restraining order
Summary
At the June 10 Thurston County commissioners meeting, commissioners reported Intercity Transit and other regional agencies have sued the Federal Transit Administration over recent unilateral changes to a grant master agreement; a judge granted a temporary restraining order pausing the new conditions while the case proceeds.
A Thurston County commissioner reported June 10 that Intercity Transit has joined King County, Sound Transit and other jurisdictions in a lawsuit challenging recent changes the Federal Transit Administration made to its master grant agreement, and that a federal judge has approved a temporary restraining order pausing those new conditions while the case proceeds.
The commissioner said the FTA changes include new directions and conditions sent in a letter from an FTA official that, in the words reported to the board, conflict with federal, state and local law and “open the agency up to unacceptable legal and operational risk.” The report said the altered agreement also introduced penalties up to three times the amount of grant funding for alleged noncompliance.
The commissioner reminded the board that Intercity Transit receives federal funding through the FTA to support fixed‑route service, dial‑a‑ride services and upgrades to facilities and technology, and that local agencies sign project‑specific grant agreements that incorporate the FTA master agreement terms.
Why it matters: commissioners said the dispute could affect how transit grant conditions are applied and how agencies access FTA funds in the near term. The judge’s restraining order pauses enforcement of the disputed conditions while the case moves through the courts.
No formal action or vote by the Thurston County Board of County Commissioners was recorded at the meeting on this item; the report was delivered as part of commissioners’ external board updates.
