This bill seeks to improve the efficiency of the nation's transportation system by promoting and funding Transportation Demand Management (TDM) strategies. It formally defines TDM as the use of strategies to inform and encourage travelers to maximize system efficiency, leading to improved mobility, reduced congestion, and better air quality. The bill integrates TDM as an eligible purpose and activity within several existing federal transportation programs, including the Congestion Mitigation and Air Quality Improvement Program, National Infrastructure Project Assistance, Local and Regional Project Assistance, and the Strengthening Mobility and Revolutionizing Transportation Grant Program. Recognizing the unique challenges faced by rural communities, the legislation establishes a Rural Transportation Demand Management Set-Aside . This provision allocates $20 million annually for grants specifically aimed at developing and implementing TDM strategies in rural areas. These grants are intended to improve mobility, increase access to jobs, and provide more modal options for residents in underserved regions. Eligible recipients for the rural TDM grants include State departments of transportation, metropolitan planning organizations serving rural areas, local and Tribal governments, public transit agencies, and nonprofit organizations. Funds can be used for activities such as developing TDM plans, marketing campaigns, data collection, and implementing innovative strategies like vanpooling, carpooling, and real-time traveler information systems. Additionally, the bill amends the Congestion Relief Program by removing population thresholds for eligible areas and creating a new $20 million annual set-aside for smaller projects ranging from $500,000 to $10,000,000.