How to maximize the impact of federal transit funding

The study, co-authored by a University of Houston researcher, reveals that billions of federal dollars invested in public transportation each year may generate greater ridership growth in smaller and midsize transit systems, particularly in the South and West, compared to the largest metropolitan areas. Assistant Professor Kailai Wang of the University of Houston explains that an additional dollar generates roughly one-third as much new ridership in large cities as it does in smaller or midsize cities.

This is due to the fact that smaller transit systems still have considerable room for growth. The Federal Transit Administration currently distributes about $20 billion annually to help transit agencies expand fleets, maintain infrastructure, and improve service. Despite the underutilization of public transportation in the U.S. (only 5% of commuters rely on it in 2019), federal funding has the most significant impact on transit growth, primarily by fueling capital investment and fleet expansion.

However, the effectiveness of federal funding varies; a new route in a rapidly growing Sun Belt city can quickly attract new riders, while additional funding in established transit networks like those in New York and Chicago is more likely to enhance existing services rather than open new travel opportunities. The study analyzed 417 U.S. urbanized areas from 2010 to 2019, before the COVID-19 pandemic, to isolate the effects of transit funding without the disruptions caused by the pandemic.

Wang emphasizes that the findings do not suggest reducing support for large transit systems; rather, maintaining high-ridership systems remains crucial.