Transit agencies nationwide are now approaching a fiscal cliff -- the steep drop in fare revenue that resulted from ridership losses during the Covid-19 pandemic and the looming expiration of federal relief funds that were provided to temporarily fill the gap. Nationwide, transit ridership has only partially rebounded, and many people continue to work from home in what looks to be a permanent shift in commuting patterns. Farebox revenue is way down, and transit-dependent people are about to pay the price through deep service cuts and steep fare increases. Layoffs are a strong possibility.
Thanks to record funding levels provided by the Bipartisan Infrastructure Law (BIL), our public transit systems are now able to purchase updated equipment, replacing aging buses and rail cars with newer, safer vehicles. However, most transit systems may not use Federal Transit Administration (FTA) funds for operating assistance to maintain service levels and keep fares down. Under current law, with few exceptions, federal transit funds may only be used for capital expenses.
ATU SUPPORTS:
The Stronger Communities through Better Transit Act (H.R.7039 – Rep. Hank Johnson), and The Moving Transit Forward Act of 2024, (S. 4316 - Sens. Van Hollen and Fetterman), which establish grant programs to support operating assistance for public transportation and related service improvements, particularly in underserved communities and areas of persistent poverty. These bills will ensure that transit service is maintained for transit-dependent riders who rely on the bus or train to get where they need to go.