Analysis Shows Public Transportation Industry Faces $39.3B Shortfall
While the much-needed initial rounds of emergency funding through the CARES Act and CRRSAA provided transit agencies across the nation with relief, transit funding needs continue to grow due to ongoing losses of ridership, fare revenue, and state and local tax revenue.

According to a January 2021 APTA survey of public transit agencies, four in 10 agencies will have to consider additional service cuts to close their budget gaps.
The Ride
An independent, economic analysis conducted by EBP US Inc. for the American Public Transportation Association (APTA) found that public transit agencies still face a projected shortfall of $39.3 billion through 2023.
While the much-needed initial rounds of emergency funding through the CARES Act and CRRSAA provided transit agencies across the nation with relief, transit funding needs continue to grow due to ongoing losses of ridership, fare revenue, and state and local tax revenue.
“The COVID-19 pandemic has put a spotlight on the importance of public transit in keeping our society working, moving, responding, and connecting,” said APTA President/CEO Paul P. Skoutelas. “The pandemic represents an existential threat to public transit jobs, businesses, and service. Our request for $39.3 billion is necessary to avoid catastrophic decisions that will hurt our riders, our communities, and the nation.”
APTA is urging Congressional leaders and President Joe Biden to provide an additional $39.3 billion in COVID-19 emergency funding to help public transit agencies continue to provide a critical lifeline to essential workers and to help our communities begin to rebuild our economy.
If Congress and the Administration do not provide significant additional COVID-19 emergency transit funding, many public transit agencies will be forced to cut service and lay off or furlough employees. According to a January 2021 APTA survey of public transit agencies, four in 10 agencies will have to consider additional service cuts to close their budget gaps. These cuts would come on the heels of 65% of transit agencies having cut service in 2020. Twenty-two percent of agencies will be forced to consider implementing additional layoffs.
These emergency funds are also critical to maintain the manufacturing and supply chain for public transportation agencies and limit the enormous economic damage to these businesses caused by the pandemic. According to a January 2021 APTA survey of public transit industry businesses, 76% of businesses have seen a reduction in their transit industry business because of COVID-19, and nearly four in 10 businesses will be forced to consider additional layoffs. One of every five businesses are concerned that they may go out of business due to the pandemic.
More Management

Turn Transit Data Into Action
Discover how leading agencies are using connected technology to gain real-time visibility across operations, improve service reliability, and reduce disruptions.
Read More →
What Transit-Oriented Development Means for the Future of Public Transportation
Once viewed primarily as transit operators, agencies are now leveraging land, partnerships, and long-term planning to boost ridership, expand housing, and strengthen communities.
Read More →
USDOT Announces $22 Million for Transit Innovation, Updates High-Speed Rail Rules
New federal transit funding will support safety, accessibility, and technology projects as updated rail regulations establish new noise standards for high-speed trains.
Read More →
Transportation Construction Coalition Unveils Infrastructure Case Studies Ahead of Federal Funding Deadline
The coalition noted the next surface transportation bill should provide sustained investment in highways and public transit to strengthen freight movement, improve safety, and support economic growth.
Read More →
People Movement: American Bus Association Extends Ferguson and More
METRO’s People Movement highlights the latest leadership changes, promotions, and personnel news across the public transit, motorcoach, and people mobility sectors.
Read More →
METRO Magazine Announces 2026 Innovative Solutions Awards Winners
Projects Recognized for Advancing Mobility Through Technology, Accessibility, Workforce Innovation, and Operational Excellence
Read More →
MBTA Rolls Out Pilot Programs to Cut Costs, Simplify Travel
Three new fare pilots — including unlimited two-hour transfers, reduced express bus fares, and free transit for eligible seniors — will launch this fall as Massachusetts extends popular commuter rail discounts through November.
Read More →
FTA Opens $610 Million Funding Opportunity for Bus Infrastructure Projects
The latest Notice of Funding Opportunity provides transit agencies with funding for bus facilities, fleet modernization, and low- and no-emission vehicles, with applications due September 21.
Read More →
Biz Briefs: STV teams with Amtrak, Motorcoach Operators Boost Fleet and Land Contracts, and More
From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.
Read More →
Massachusetts Approves $530M to Strengthen MBTA Operations, Infrastructure
The funding package targets operating stability, capital improvements, and fare affordability, offering a model for agencies navigating long-term funding challenges.
Read More →