Bill would allow LIRR commuters to recover transit funds

A bill introduced in Congress Friday could give lapsed LIRR commuters new hope of recouping money that’s been trapped in pretaxed transit accounts since the beginning of the COVID-19 pandemic.

Rep. Anthony D’Esposito (R-Island Park) on Friday reintroduced a bill originally authored by former Democratic Rep. Kathleen Rice that would “allow for one-time distributions from certain transportation fringe benefit accounts.”

The original bill, introduced in May of last year, died after Rice, and most of its co-sponsors, left office. A Senate bill co-sponsored by Kirsten Gillibrand and Chuck Schumer, both Democrats from New York, also has not been acted upon since being introduced on May 12, 2022.

"We continue to look for options to pass the bill so Long Islanders can access the money they originally set aside," Schumer spokesman Angelo Roefaro said Friday.

The new legislation aims to address a situation faced by thousands of former LIRR commuters who stopped taking the train to work around the beginning of the pandemic in March 2020 and never returned.

Pretaxed money that was deducted from their paychecks monthly remains trapped in special accounts overseen by benefit administrators like WageWorks. IRS rules prohibit the funds from being withdrawn, refunded or spent on anything other than transit costs.

Under the proposed legislation, co-sponsored by Reps. Nick LaLota (R-Amityville) and Andrew Garbarino (R-Bayport), money refunded would be counted toward an account holder's gross, taxable income. 

Former Democratic House member Steve Israel said it's "possible" for the bill to become law, if the Long Island delegation makes it a priority with GOP House leadership, finds bipartisan support in the Senate, and attaches it to legislation that President Joe Biden would sign.

"It’s a marathon, not a sprint," Israel said. "But a willingness to work both sides of the aisle and push every day is the difference between a press release and an act of Congress."

In April, Gerard Bringmann, chairman of the LIRR Commuter Council, was skeptical commuters would be able to recoup their money. He said he believed “the ship sailed, and sunk.”

“The ship is heading back into port,” said D’Esposito, who expressed optimism in getting the bill passed. “With the very slim majority that [Republicans] have, New Yorkers play a significant role. And I think we’re going to make it clear [to leadership] that it’s important.”

Bringmann said Friday that he was “extremely pleased” that the legislation had been resuscitated. “This would be huge for my fellow commuters, many who still have hundreds of dollars tied up in these accounts,” he said.

It’s much more than that for Michael Mimmo, who unknowingly let more than $2,000 accrue in his account, and is still working from his Bayville home, with no reason to take the LIRR.

“I used to take it everyday. I haven’t been on the Long Island Rail Road in three years. Every time I drive by [a station], it’s like I miss it, and I don’t,” said Mimmo,  who shared a message to lawmakers considering the bill. “It’s my money, and it’s a significant amount that’s locked up.”

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.