Congress considers reforms to federal transit grant programs amid declining ridership

In the United States, federal transit grant programs have come under scrutiny due to a significant decline in transit ridership and escalating project costs. Despite an unprecedented $30.5 billion infusion of funds to transit agencies in response to the COVID-19 pandemic, transit ridership in 2024 was down nearly 30% from a decade earlier. Notable projects, such as a proposed light rail extension in Seattle, demonstrated alarming cost overruns, with expenses increasing from $2.1 billion to around $7 billion. Meanwhile, cities like Portland and Charlotte that expanded their light rail systems also experienced lower ridership than in previous years, raising questions about the efficacy of federal funding allocations and their impact on local transit systems. These challenges have persisted over time and indicate that merely injecting federal funds without a concrete strategy does not guarantee positive outcomes. As the financial burden of these projects often leads local agencies into long-term debt, it places taxpayers under excessive stress, particularly when agencies prioritize costly capital projects over effective transit solutions. Some experts assert that cutting or reducing federal grants might not necessarily lead to a decrease in ridership, redirecting the discussion on how federal support can be optimized instead. In light of these pressing issues, there is a call for Congress to take a decisive stance on reforming federal transit grants. Suggested changes include capping federal funding for capital improvements at 50% from the current 80%, while maintaining operational assistance at 80%. Additionally, implementing a project analysis tool to evaluate the benefits and costs of transit projects is recommended, ensuring that government funding receives a careful assessment based on established financial metrics before being awarded. Ultimately, reforming the federal transportation bill is aimed at developing a results-oriented approach that not only enhances transit agencies' accountability but also secures better value for taxpayer investments. In an era where the deficit is a central concern for Congress, these proposed measures could pave the way for a more sustainable future for U.S. transit systems, capable of addressing the evolving needs of commuters.