The federal government must help transit agencies meet rising demand, Sen. Hillary Clinton said on Friday at a press conference in Grand Central Terminal which highlighted her “Saving Energy Through Public Transportation Act.” The Senate legislation would provide $1.7 billion over two years to transit agencies which expand service or cut fares. $237 million of that aid would go to agencies in New York state. The House of Representatives passed a similar bill in June.

At the press conference, Sen. Clinton said the U.S. needed to spend more on its transportation infrastructure. “We are living off the investments of another time,” she said, and identified transit as a key element of the “safer, stronger, and smarter” transportation network America needs to build. In a NY Daily News op-ed published today, Clinton revisited those themes, calling public transit a “win-win-win scenario” that helps Americans save money, reduces traffic congestion, and lessens the country’s dependence on foreign oil.

Also speaking at the press conference were Rep. Carolyn Maloney, Larry Hanley of the Amalgamated Transit Union, MTA executive director Lee Sander, NYCDOT Commissioner Janette Sadik-Khan, Rich Kassel of the Natural Resources Defense Council (and TSTC’s board chair), Gene Russianoff of the Straphangers Campaign, and others. Along with Clinton, several of the other speakers noted that the proposed legislation is needed, but is only a short-term solution to the challenges faced by transit systems across the country. The next step is the reauthorization of the federal transportation legislation, which will likely occur in 2009. Clinton said that, as a member of the Senate Environment and Public Works Committee, she would work to ensure that the reauthorization bill would focus federal transportation investment into transit projects.

The Wall Street Journal has reported that there is momentum in Congress for aiding transit agencies. A similar measure may be incorporated into a broader energy bill if Clinton’s legislation does not pass, according to the article.