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Proposed Changes to FTA Drug and Alcohol Testing Regulations: A Step Too Far?
The Federal Transit Administration (FTA) has announced its intent to modify several decades of guidance regarding drug and alcohol testing regulations for Transportation Network Companies (TNCs) and taxicab drivers operating in partnership with transit agencies. Under the proposed changes, any transit agency with a formal or informal arrangement with a TNC or taxicab company would be required to ensure that all drivers who provide—or may provide—transportation service are included in an FTA/DOT-compliant drug and alcohol testing program.
While the FTA seeks feedback before finalizing this policy, concerns are mounting about whether this represents yet another instance of excessive government regulation—one that could disrupt transportation services for those who rely on them most. The International Association of Transportation Regulators (IATR) plans to submit formal comments opposing this rule change and urges stakeholders to do the same before the February 13, 2025, deadline.
The Expansion of Federal Oversight
The FTA’s Drug and Alcohol Rule (49 U.S.C. 5331, part 655) mandates that any recipient of federal funding must implement drug and alcohol testing for safety-sensitive employees, including vehicle operators. The rules also apply to contractors providing safety-sensitive services, even if their work is not directly federally funded. Traditionally, however, the FTA has allowed flexibility in enforcement—particularly under the taxicab exemption, which enables transit agencies to subsidize taxi rides in certain cases without requiring all drivers to undergo federal testing.
The Federal Transit Administration (FTA) has specified for years that these rules do not apply when patrons, using subsidized vouchers, select the taxi company providing the transit service. This distinction acknowledges the practical challenges of administering a D&A testing program for entities that only incidentally offer transit services as part of much broader operations, such as taxi companies and TNCs. This policy allowed transit agencies to extend transportation services to individuals who might not otherwise have access while keeping regulatory burdens in check.
A Bureaucratic Overcorrection?
The FTA now proposes revising its 2016 Shared Mobility FAQs to “correct an error” that has allegedly led to agencies misapplying the taxicab exemption. The agency argues that the exemption was never meant to apply when transit agencies have contractual or informal agreements with taxicab or ridesourcing companies. Under the new interpretation, any driver operating under such an agreement would be subject to the same stringent drug and alcohol testing rules as full-time transit employees.
However, critics argue that this shift exemplifies regulatory overreach that could burden transit agencies, drive up costs, and reduce service availability—especially in underserved areas or for underserved populations. By layering additional federal mandates on local transit agencies, the new policy could inadvertently limit mobility options for disabled individuals, elderly riders, and those who depend on affordable transportation alternatives most.
Have Your Say
The FTA is accepting comments on this proposed policy update until February 13, 2025. To weigh in, visit www.regulations.gov/document/FTA-2024-0020-0001.
Following the public comment period, the FTA will issue a final notice detailing the updated policy and revised FAQs.
Regulatory Challenges on the Agenda at IATR’s Annual Conference
These proposed changes—and their broader implications—will be a key topic of discussion at the 38th Annual IATR Conference in Nashville from September 27 to October 1, 2025. A dedicated workshop on FTA taxi exemptions and mobility-on-demand regulations will provide stakeholders an opportunity to explore solutions to these emerging challenges. Register today to participate in shaping the future of transportation policy.
The IATR is supportive of removing unnecessary barriers to public-private partnerships between private transportation companies (taxicabs, for-hire vehicles and TNCs) and public transit agencies to promote innovation through safe, efficient and accessible multi-modal services as part of the transportation ecosystem. Not only does the IATR support such partnerships, but its efforts in recent years to modernize regulatory frameworks seeks to remove barriers to serving passengers in the most efficient manner. If you have specific ideas or comments you plan to submit, or have any questions or ideas, please contact mdaus@iatr.global.
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