Legislation Will Establish Funds to Support Businesses Facing Interruption, Closure Amid Federally Funded Transportation Projects
WASHINGTON — Today, Representative Lou Correa (D-CA introduced the Business Uninterrupted Monetary Program Act of 2025, (The BUMP Act), legislation which would provide needed funding to businesses and nonprofits negatively impacted by major transit and highway projects across Orange County.
The BUMP Act requires local sponsors of major transit and highway projects to create a funding pool, from their already required share, that will provide impacted businesses with monetary relief to cover expenses during interruption by transportation construction—including those that impede customers’ access to their store fronts. This funding would be allowed to cover utilities, insurance, rent or mortgage, payroll, and loss of income for impacted businesses. Last month, a report released by the Orange County Grand Jury confirmed that local businesses would have benefitted from public funding while the construction project was interrupting their income.
“Many small businesses are forced to close their doors and lose millions in revenue because of the construction of transportation projects in their communities,” Correa said. “The BUMP Act will ensure that these businesses stay afloat if a transportation project pops up in their neighborhood, and it would make federal tax dollars available to hard-working small business owners on Main Street harmed by this construction. Our local business owners are part of the economic fabric of our communities, and they deserve our support if federally funded projects are interrupting their day-to-day operations. Small businesses should not have to bear the cost of progress.”
In Santa Ana, following the wave of business closures caused by the COVID-19 pandemic, a major transit project blocked access to downtown businesses. Many of them struggled to pay their expenses—and ultimately, some of these businesses were forced to close. The Orange County Grand Jury report notes that the Orange County Transportation Authority (OCTA) failed to mitigate the significant loss of income to the businesses. BUMP funds could have helped keep businesses and nonprofits solvent in the event of a measurable negative financial impact originating from a major highway or transit project.
“I’ve been working on Fourth Street for more than 20 years but these past 6 have been especially difficult. First the COVID-19 Pandemic began, then came the poor construction of the train, and finally the problems we are facing with immigration,” said Juliet Castro, owner of the Beauty Salon. “I am having to face this situation alone, but am in need of support.”
“I’ve lost many customers because of this streetcar project,” said Marcela Prado, owner of Holyday Travel. “Even though Fourth Street has been repaired, I still have not been able to recover from the loss of business. I’m hopeful that with some support small businesses in Santa Ana will be able to flourish again.”
Under the BUMP Act, funds will be created and managed by project sponsors of highway projects with a total cost equal or greater than $50 million and transit projects with a total cost equal or greater to $100 million. The money for the funds will come from their cost-share funding. The bill also creates a one-time grant opportunity for businesses and nonprofits that were negatively financially from an interruption created by some major transit projects.
BACKGROUND: The BUMP Act requires local sponsors of major transit ($100+ million) and highway ($50+ million) projects to create a fund that will provide impacted entities with funds to cover ordinary business expenses incurred during the time of the interruption. Local sponsors will manage the program and will determine which entities qualify, the types of expenses covered, the amount of funding provided, and all other essential aspects of the program.
Local sponsors only need to maintain one BUMP fund for all their projects and may request a waiver if they already have an equivalent program or can show that there is not an interruption or there will not be a measurable negative financial impact on otherwise eligible entities. The grant program will serve entities negatively impacted by transit projects that began on or after October 1, 2018, and are still underway as of June 1, 2023. Grants can be up to $10 million. This legislation was initially introduced in 2023.
Led by Rep. Correa, this legislation has also been endorsed by Anaheim Transportation Network. It was also co-sponsored by Representative Troy Carter (D-LA).
You can find the full text of the legislation HERE.
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