WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.), Ranking Member of the Senate Agriculture Committee on Rural Development, Energy, and Credit, today joined U.S. Senator Alex Padilla (D-Calif.) and U.S. Representative Mike Thompson (D-CA-04) to introduce the Bicycle Commuter Act of 2025, bicameral legislation that would reinstate and expand the Bicycle Benefit Subsidy Program’s non-taxable bicycle commuter benefit to encourage more Americans to bike to work.
“The perks of biking to work are tenfold–saving commuters money, providing health benefits, and helping reduce emissions. An increasing number of Vermonters have recognized those benefits, with the number of cycling commuters doubling in the Green Mountain State in the past decade. But there’s more that we can do to strengthen biking infrastructure to help more folks around the country enjoy the advantages of cycling to work,” said Senator Welch. “Our bicameral legislation will reinstate and modernize the bicycling tax benefit to encourage more commuters around the country to get to work by riding a bicycle.”
“Biking to work is good for our planet, our health, and our wallets,” said Senator Padilla. “The Bicycle Commuter Act would allow cyclists to take advantage of the same tax benefits that incentivize hardworking Americans to commute via public transit or carpool, while also helping keep our air clean and reduce congestion on our roads. It would also expand these commuter tax benefits to e-bikes, bikeshares, and certain scooters, further encouraging bike ridership and putting money back in the pockets of workers.”
“Cycling is efficient, low-cost, and low-impact on our roads and the environment — in other words, it’s good for you and it’s good for our planet. Encouraging people to bike to work just makes sense,” said Rep. Thompson, Co-Chair of the Congressional Bike Caucus. “I’m glad to work with Senators Welch and Padilla on this bicameral legislation restoring and modernizing bike commuters’ tax benefits.”
Cities and towns across America are investing in bike and pedestrian-friendly infrastructure to create safer, greener, and more connected communities. In Vermont, nearly 6% of residents walk to work, ranking the Green Mountain State third-highest in the nation for its walk-to-work percentage. The amount of Chittenden County residents that bike to work has doubled since 2010, with the number of statewide cycling commuters in Vermont expected to increase as local trail associations spearhead initiatives that allow Vermonters to bike longer distances to work. According to recent studies, over 60% of Chittenden County residents would walk or bike to work more frequently if safety and accessibility improvements are made.
In 2009, Congress created the Bicycle Benefit Subsidy Program to encourage more workers to bike to their jobs by allowing employers to offer a non-taxable reimbursement of up to $20 per month for expenses related to bicycle commuting. However, employees who elected to participate in the program were forced to forfeit other commuter benefits, such as those provided for parking or transit. The non-taxable bicycle commuter benefit was suspended until 2026 by the Tax Cuts and Jobs Act of 2017, eliminating this vital financial incentive for employees who bike to work.
The Bicycle Commuter Act of 2025 would modernize the Bicycle Benefit Subsidy Program to ensure cyclists can access pre-tax commuter benefits similar to those available for parking and public transit and allow recipients to claim the bicycle benefit in tandem with other commuter benefits. The bicameral legislation would also allow electric bicycles and bikeshare and scootershare services to be eligible for the benefit.
The Bicycle Commuter Act is supported by the Association for Commuter Transportation (ACT), League of American Bicyclists, North American Bikeshare and Scootershare Association, PeopleForBikes, Rails to Trails Conservancy, Safe Routes Partnership, and Sierra Club.
“The reintroduction of the Bicycle Commuter Act is an important step toward building a more balanced, multimodal transportation system that supports healthier, more accessible commutes. By recognizing and incentivizing active transportation, Congress is helping to reduce congestion and improve quality of life for millions of commuters. ACT applauds Senator Welch and Representative Thompson’s leadership and commitment to a future where every journey can be a better one,” said David Straus, Executive Director, Association for Commuter Transportation (ACT).
“The League of American Bicyclists applauds Senator Peter Welch and Representative Mike Thompson for their efforts to put money back in commuters’ pockets by introducing the Bicycle Commuter Act,” said Bill Nesper, Executive Director, League of American Bicyclists. “The Bicycle Commuter Act would give bike commuters the same tax benefit that drivers and transit riders already receive. Americans have the freedom to commute to work however we choose and we should all get the same tax benefits on our chosen commutes to work. By incentivizing bike commuting, Congress can help reduce traffic on the roads, give parity to our commuter tax system, and ensure everyone gets home safely.”
“We are thrilled to see the introduction of the Bicycle Commuter Act, which would include bikeshare and scootershare among the transportation-related benefits that employers can provide,” said Sam Herr, Executive Director, North American Bikeshare & Scootershare Association. “We thank Senator Welch and Representative Thompson for their leadership on this important legislation that helps to support employee travel choices and options.”
“Americans deserve the choice to pick which way they want to get to work, and bike commuting saves money and gives access to jobs,” said Jenn Dice, President and CEO, PeopleForBikes. “The Bicycle Commuter Act expands choices and opportunities for everyone by giving people who commute by bike the same tax benefits that car and transit commuters already enjoy. More people are using bikes to get to work, which brings significant economic and health benefits to local communities.”
“We applaud and thank Senator Welch for his sponsorship of this important legislation to restore bicycle commuter benefits, demonstrating, alongside his longstanding support of the Recreational Trails Program, the importance of bicycling as a way for people across the country to get around their communities,” said Kevin Mills, Vice President for Policy, Rails to Trails Conservancy. “His leadership will bring meaningful financial benefit to those who commute by bike and have negligible impact on the tax revenue stream to the federal government.”
“Safe Routes Partnership applauds Senator Welch’s leadership in introducing the Bicycle Commuter Act. Any action that incentivizes people to get around via active transportation—like biking—helps build healthier, safer, and more connected communities. This legislation is an important step toward making it easier for more people to choose biking as a safe and convenient way to get to work,” said Marisa Jones, Managing Director, Safe Routes Partnership.
“While many employees enjoy a commuter tax benefit for parking and transit, this does not extend to biking. The Sierra Club is proud to support this legislation that would incentivize biking and help improve our health, curb pollution, and reduce dependency on cars,” said Katherine García, Clean Transportation for All Director, Sierra Club.
Learn more about the Bicycle Commuter Act.
Read and download the full text of the bill.
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