November 13, 2023


Legislation Will Establish Locally Sponsored Funds to Support Businesses Facing Interruption, Closure Amid Federally-Funded Transportation Projects

WASHINGTON, D.C. — Today, Representative Lou Correa (CA-46) introduced the Business Uninterrupted Monetary Program Act of 2023 (BUMP Act), legislation which would provide needed funding to businesses and nonprofits negatively impacted by major transit and highway projects in their communities.

The BUMP Act requires local sponsors of major transit and highway projects to create a funding pool 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, loss of income for impacted businesses.

“Local businesses should be the first ones to benefit from new roads and highways. Instead, many are forced to close their doors and lose millions in revenue because of the construction,” Correa said. “The BUMP Act will ensure that these businesses stay afloat, no matter what transportation project pops up in their neighborhood. 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. Local businesses should not have to bear the burden 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. BUMP funds will help keep businesses and nonprofits solvent in the event of a measurable negative financial impact originating from a major highway or transit project.

"Having personally weathered the severe consequences of the streetcar construction on 4th street and as a restaurant and tax office owner, I am extraordinarily proud of the BUMP Act. This bill is not just a lifeline; it's a testament to resilience for myself and the 600 other businesses in this community,” said Ana Laura Padilla, owner of La Perla Mexican Cuisine. “We've witnessed a significant decline in clients, revenue, and have fought hard to maintain our financial stability during the trying period of construction. This new legislation offers a new hope and an opportunity to rebuild what we've lost."

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.

“Small businesses are an integral part of local economies, feeding the needs of the immediate area and supporting the area at the same time,” said Delilah Snell, Owner of Alta Baja Market. “But they are also fragile—many are always on the brink of financial ruin, and shutdowns due to construction are downright catastrophic. Rep. Correa’s BUMP Act to protect small businesses during disruptions is not only respectful of this important part of this country's economy, but also acknowledges the obligation the government has to help them.”

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 of 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. This 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.

Led by Rep. Correa, this legislation has also been endorsed by Anaheim Transportation Network. 

“At Anaheim Transportation Network (ATN) we believe the role of transit is to make vital connections possible. We work closely with our community partners to make sure transit connects people to education, health care, work, and play,” said Diana Kotler, CEO of Anaheim Transportation Network. “We support legislation championed by Congressman Correa and are grateful for his leadership in making sure the very businesses that transit supports are treated fairly when construction may have an impact.”

You can find the full text of the legislation HERE.