A budget stalemate that has the federal government on the brink of its first shutdown in seven years could affect a range of public services nationwide, but public transit in the State College area won’t be among them.
The Centre Area Transportation Authority said in a statement this week that its operations will continue as normal if the government shutdown begins on Wednesday.
“While CATA receives substantial financial support from the federal government, our strong current financial position will, if necessary, ensure uninterrupted service for several months,” the authority wrote in a news release. “In the event of a federal shutdown, all CATA services—including fixed-route CATABUS, CATAGO! on-demand microtransit, CATARIDE paratransit and CATACOMMUTE Vanpool—will remain available and operate according to schedule.”
CATA is slated to receive about $5.54 million in federal subsidies for 2025-26, or about 19% of its $29.2 million total budget for the fiscal year.
The agency also receives about $13.5 million in subsidies from the state, which is now three months late with its 2025-26 budget and is no longer expected to include additional funding for public transit systems. The lack of new funds from the state likely won’t lead to CATA service cuts as is expected among some other Pennsylvania transit systems, but outgoing CEO David Rishel recently told Spotlight PA it would probably slow expansion plans to meet increasing demands for service.
At the federal level, a partisan standoff over health care and spending is threatening to trigger a government shutdown at 12:01 a.m. Wednesday. To avoid it, the Senate would have to pass a House measure that would extend federal funding for seven weeks while lawmakers finish their work on annual spending bills. But a resolution appeared far off as tempers flared, increasing the odds of a shutdown by the hour.
Senate Democratic Leader Chuck Schumer, D-N.Y., said Republicans are trying to “bully” Democrats by refusing to negotiate on an extension of health care benefits and other priorities.
President Donald Trump and his fellow Republicans say they won’t entertain any changes to the legislation, arguing that it’s a stripped-down, “clean” bill that should be noncontroversial.
The Pennsylvania Chamber of Business and Industry urged lawmakers to pass a clean resolution and avoid what it says would be a damaging shutdown.
“A shutdown would have serious consequences for Pennsylvania’s economy, workforce, and communities — undermining business confidence, disrupting federal services, and threatening critical operations that families and employers rely on every day,” Pennsylvania Chamber President and CEO Luke Bernstein said in a statement. “A shutdown would threaten important economic progress, delay federal permitting and contracting, and jeopardize essential services that support infrastructure, transportation, and public safety.
“Passing this continuing resolution to avoid a government shutdown is important for a wide range of Pennsylvania employers — from the largest manufacturers and service providers to the small businesses that power our economy.”
Bernstein commended Pennsylvania’s U.S. Senators, Democrat John Fetterman and Republican Dave McCormick, for advocating for passage of a continuing resolution.
“Their efforts reflect a shared commitment to fiscal responsibility and economic resilience,” Bernstein said. “We encourage all members of Congress to follow their example and prioritize responsible governance over partisan gridlock.”
The Associated Press contributed to this report.
