Each day, roughly 6,800 public transit providers across the United States carry millions of people in rural and urban communities to work, school, medical appointments, and grocery stores by bus, ferry, tram, or subway. Investing in expanded and accessible public transportation systems not only makes it possible for people to travel safely and affordably, but also reduces local air pollution, improves land use, and supports millions of jobs.

This Environmental and Energy Study Institute (EESI) briefing highlighted federal programs and research that propel public transit forward in the United States. Panelists discussed how federal transit investments bolster local economies, with every dollar invested in transit generating $5 in economic returns. They also explored transit’s central role in connecting people to other forms of transportation, from walking and biking to planes and trains.

This briefing was part of a series focused on the role of federal transportation and infrastructure investments in strengthening communities, increasing economic opportunity, building resilience, and reducing greenhouse gas emissions in the lead up to the next surface transportation reauthorization bill. View the full briefing series at eesi.org/transit-briefings.

 

Highlights

KEY TAKEAWAYS

  • The surface transportation reauthorization bill is the most significant legislation related to public transit. 
  • Federal investments in transportation can uplift communities by both addressing immediate infrastructure needs and thinking long-term about the impacts of climate change. 
  • There are numerous co-benefits that go along with public transportation. A public transportation stop makes it possible for a large population of people to access jobs, housing, groceries, and other needs without a car.

 

Representative LaMonica McIver (D-N.J.) 

  • In New Jersey’s 10th Congressional district, smart infrastructure investments have transformed people’s lives. Transportation options and increased access improve everyday life and increase economic growth. 
  • Building transportation infrastructure is not only about building highways and railroads, but also connecting people to jobs, education, and healthcare. 
  • Federal investments in transportation should uplift communities by both addressing immediate infrastructure needs and thinking long-term about the impacts of climate change. 

 

Rebecca Higgins, Vice President of Policy, Eno Center for Transportation

  • The transportation sector accounts for 28% of total U.S. greenhouse gas emissions. Light-duty vehicles are responsible for more than half of these emissions, while public transportation accounts for a very small portion. 
  • There are two main options to reduce greenhouse gas emissions from transportation: increase the efficiency of transportation and reduce the demand for miles traveled by high-emissions vehicles, which can be accomplished by incentivizing public transit. 
  • Public transportation is a climate solution because the emissions efficiency of moving a large number of people on a bus is much higher than a vehicle moving one or a few people, even if that bus runs on diesel. 
  • There are numerous land use co-benefits that go along with public transportation. A public transportation stop makes it possible for a large population of people to access jobs, housing, groceries, and other needs without a car. 
  • Because most public transit agencies depend heavily on federal funding, Congress has an opportunity to encourage them to transition to electric buses, which provide a host of benefits by improving local air quality. 
  • Key Congressional committees for transportation legislation include: House Transportation and Infrastructure; Senate Banking, Housing and Urban Affairs (covering public transit); Senate Commerce, Science, and Transportation (responsible for rail, aviation, and safety); and Senate Environmental and Public Works (focused on highways).
  • The surface transportation reauthorization is the most significant legislation related to public transit. The most recent reauthorization was the Infrastructure Investment and Jobs Act (IIJA) (P.L. 117-58).
  • There are three types of funding used in the IIJA: 
    • Contract authority: This is funding that comes to the federal government through the highway trust fund, which comes from the gas tax and some other taxes. This funding goes mostly to highways, with some going to transit.
    • Funding subject to appropriations: Funding is only authorized through the reauthorization and appropriations will happen during the annual appropriations of discretionary dollars. 
    • Advanced appropriations: This method was used for the first time in surface transportation reauthorizations with the IIJA. In this case, lawmakers used the legislation to appropriate funding for five years. About 23% of transit funding in IIJA came through advanced appropriations. 
  • Some accounts only received advanced appropriations funding (e.g., rail), and it is not clear if that will happen with the next reauthorization, which could lead to significant cuts for certain programs. 

 

Jarrett Stoltzfus, Director of Infrastructure, Transportation, Arnold Ventures

  • Buses are the workhorses of public transit–-almost every transit agency runs them.
  • There are about 60,000 transit buses and 500,000 school buses on the road today.
  • The U.S. Department of Transportation’s Federal Transit Administration funds most buses in the United States. State and local funds from sales taxes and fares also contribute. 
  • The FAST Act of 2015 (P.L. 114-94) requires that buses are assembled in the United States and that 70% of the component parts, by cost, must be made in the United States as well. The law also requires large buses to be on the road for at least 12 years.
  • Over time, the fuel type for buses has shifted. Before the 2000s, almost all buses ran on diesel. Then, there was a move to compressed natural gas. Now, companies are also providing battery electric and hydrogen fuel cell options. 
  • Many cities are looking to bus rapid transit as a way to move people more efficiently on buses by providing dedicated right-of-ways and other features that help buses avoid traffic. 
  • Transit is a partnership between federal, state, and local government; local businesses; employees; community organizations; riders; residents; advocates; real estate; and manufacturers and service providers. 
  • The COVID-19 pandemic caused fundamental changes in transit ridership patterns. Technological changes (e.g., micromobility ridesharing, and autonomous vehicles) are also impacting how public transportation agencies operate.
  • With the surface transportation bill up for reauthorization in 2026, the federal funding environment is unclear. At the subnational level, some states and cities are all in when it comes to providing funding, while others are not. Fares are generating less money than before.  
  • From a philanthropic perspective, Arnold Ventures is considering how their work can support expediting project delivery, streamlining programs, selecting projects more effectively, maximizing decades of investments in transit-oriented development, building housing around these transit lines, and adopting new technologies. 

 

Q&A

 

Q: What could be done at the federal level to close the gap between where transportation policy leaves off and land use policy begins? 

Higgins

  • It is important that there is close coordination between transportation, housing, and economic planning, which are all federally required. Congress took steps to encourage this coordination through the IIJA. 

Stoltzfus

  • This is a bigger challenge than many people realize because transportation funding and programs come from states and federal agencies while land use decisions are made at the local level. When a municipality is looking to do a large transportation project, they should be thinking about what zoning changes may be needed to make that project most effective. Meanwhile, state and federal funders can consider incentivizing land use policies that align with the transportation projects they are funding. 

 

Q: When buses are full, they are a very efficient way to move people around, but at off-peak times, there can be very few passengers. How do you talk about the benefits of bus infrastructure when ridership varies so much?

Higgins

  • Public transportation provides many benefits to communities, in addition to reducing greenhouse gas emissions. People who do not have personal vehicles rely on these systems all the time. It provides people access to work, school, healthcare, and other needs. 
  • It is important to provide the right scale of service for the size of the community. In some places large buses are not as necessary, but shuttle services would work well. 
  • Eno’s report, Connecting Communities: Options and Considerations for Enhancing Rural Transit, reviews options that public transportation providers can explore for smaller communities.

Stoltzfus

  • Public transportation meets critical mobility needs, and that should be communicated to the ridership base. 

 

Q: What is the role of the federal government in collecting data that state and local governments can use to inform transit planning?

Stoltzfus

Higgins

  • There is a lot of data collected by the private sector (e.g., car manufacturers and map apps) about how people move. 
  • The federal government provides funding to local transportation agencies that can be used to collect localized data on origin, destination, and ridership needs. Local transit agencies then submit their data to the federal government, which collects that information in one place. 

 

Q: Is there any data on whether fare-free transportation does increase ridership?

Stoltzfus

  • During the COVID-19 pandemic, public transportation in most American cities went fare-free, so data from that time is helpful. 
  • For a number of small systems, they have determined that the cost of fare collection is higher than the fares collected, so they have stopped charging. 
  • For large systems, it is a trade off. If fare collection accounts for 20% or more of the funding, then without fares, service will decrease. Fare-free service might drive up ridership, but it creates a revenue deficit. 

Higgins

  • In terms of encouraging ridership, it depends on who is using the transportation system. If the system is primarily supporting workers, one way to increase ridership could be to coordinate with workplaces to provide transportation discounts. For cities frequented by tourists, it might make more sense to make transportation fare-free to reduce access barriers.

 

Compiled by Jasmine Wynn and Isabel Rosario-Montalvo and edited for clarity and length. This is not a transcript.

5/20/25 Briefing: Sustainable Public Transit