The legislation moving through Congress aims to provide funding to small businesses and nonprofit organizations negatively impacted by major highway and transit projects.
Introduced by Rep. Lou Correa, D-Santa Ana, the bill, called Uninterrupted Business Activity Monetary Program Act of 2023 —or BUMP Act—would require “local sponsors of major transit and highway projects to create a funding fund that would provide affected businesses with monetary relief to cover expenses during the disruption of transportation construction,” according to his office.
Major transit projects required to create a BUMP fund would have a total price tag of $100 million or more, and for highway projects, $50 million or more.
The funding could cover utilities, insurance, rent or mortgage, payroll and lost revenue. As the bill is written, it is up to sponsors of a transportation project to determine which companies would be eligible for that funding and how much each should receive. Local agencies would also have to verify information provided by affected companies.
If the project already has an equivalent program or agencies can demonstrate there is no business interruption, they could request a waiver from the Secretary of Transportation to opt out of creating a BUMP fund, according to the legislation.
In Santa Ana, where Correa resides, merchants near the central Fourth Street say they are still dealing with the effects of construction that passed through the area during the OC Trama 4.1-mile line connecting Santa Ana and Garden Grove.
Construction of the tram, which began in 2018, Sidewalks and parking spaces on Fourth Street were closed for several monthswhich small business owners who operate on the historic thoroughfare say has led to revenue losses. Construction is ongoing, Orange County Transportation Authority spokesman Eric Carpenter said, and testing of the streetcar is expected to begin in 2025.
Carpenter said OCTA has been “very aware of the concerns raised by business owners along Fourth Street” and has worked with them on several fronts to address their concerns.
“Some of the steps OCTA has taken to address those concerns include inspecting the work site daily, providing security in the area, and putting up fencing and signs to let the public know that local stores and restaurants remained open even during the busiest times of construction,” he said. “OCTA also continued to coordinate with the construction contractor to increase work hours in the area and complete the work more quickly.”
Correa said his colleagues across the country have heard from constituents experiencing similar difficulties during construction projects.
“There are beautiful infrastructure projects underway in the district and small businesses that are closing their doors in the name of progress,” Correa said. “Local businesses should not have to bear the brunt of progress.”
The legislation, co-sponsored by Rep. Adam Schiff, D-Burbank, was referred to the House Subcommittee on Highways and Transit last November and has not been changed since. Correa’s office said he is currently working with other House members and outside stakeholders to determine next steps.