Funding for Transit: Past, Present, and Future

Abstract

As many states debate funding for their transportation systems, it would be wise to consider the history of funding transit modes. The history of transit funding holds many valuable lessons for public officials to consider. Moreover, national trends in transportation funding reveal a future of transit funding significantly different than the world as we have known it.

One important lesson to consider is that federal funding should not be relied upon as a significant source of capital or operating costs. Although federal funding has played a critical role in the construction and operation of transit systems since the years following World War II, it will not in the future. Federal funding for public transit peaked in the 1970s and continues to decline. As a result, new transit plans should not rely on federal funding.