A new independent economic study assessing the American Public Transportation Association (APTA) Surface Transportation Authorization Recommendations finds that every $1 billion invested in public transportation generates $5 billion in long-term economic value and supports tens of thousands of jobs nationwide.

The findings provide clear evidence that sustained Federal investment in public transit and passenger rail delivers significant returns for workers, communities, taxpayers, and the U.S. economy, APTA officials said.

Upcoming Surface Transportation Bill

In February, the APTA board approved the APTA Surface Transportation Authorization Recommendations, which urge Congress and the Administration to build upon current investment for public transit and passenger rail to drive job creation, innovation, and economic growth by providing $138 billion for public transit and $130 billion for passenger rail over the next five years.

The report, Economic Impact of Public Transportation Investment, finds that public transportation investment delivers strong taxpayer returns through job creation, increased tax revenue, improved access to jobs and healthcare, reduced congestion, and lower household transportation costs. The report specifically finds that these critical public transportation investments will create an additional $140 billion in annual economic impact.

“Public transportation is one of the smartest investments we can make in America’s economic future,” said APTA President/CEO Paul P. Skoutelas. “A $1 billion investment doesn’t just move people. It moves our entire economy forward, creating tens of thousands of jobs and unlocking billions in economic opportunity.”

Federal investment enables public transit agencies nationwide to address the more than $150 billion state-of-good-repair backlog, meet growing mobility demands in our communities, and drive innovation and new technologies to enhance safety and expand access to jobs, healthcare, and education, APTA officials said.

Creating Economic Impact

The Economic Impact of Public Transportation Investment finds that each $1 billion invested in public transit delivers:

Economic Impact

• $5 billion of economic value (GDP) (5-to-1 economic return on investment), including:
• $1.4 billion in direct spending from construction, manufacturing, and operations.
• $3.6 billion in long-term benefits from improved mobility, reduced congestion, and expanded access to jobs and healthcare.

Job Creation

• 41,400 jobs created or sustained across construction, manufacturing, operations, and supplier industries.
• $3.1 billion in worker income is supported.

Taxpayer Returns

• $251 million in Federal, State, and local tax revenue

“These results are not accidental. They are the direct outcome of Federal leadership and investment,” Skoutelas said. “When the Federal Government invests in public transportation, communities see real improvements, such as expanded service, modern vehicles, good-paying jobs, and stronger local economies.”

Additional Research

Other APTA research finds that 77% of Federal public transit funds flow to the private sector, supporting American manufacturing and family-wage jobs.

APTA also released updated bus manufacturing and railcar manufacturing schematics illustrating how Federal public transit investment supports 3,000 suppliers in more than 1,700 communities in 50 states.

“Federal investment has delivered results, but the job is far from finished,” Skoutelas said. “A strong, long-term Federal commitment is essential to drive job creation, innovation, and economic growth across the nation.”

Three key initiatives guide the APTA Surface Transportation Authorization Recommendations for the next surface transportation law:

1. Build on current investments in public transit and passenger rail to drive job creation, innovation, and economic growth.
2. Accelerate project delivery by eliminating statutory and regulatory barriers to building infrastructure.
3. Strengthen collaborative, local decision-making.

 Economic Impact of Public Transportation Investment was prepared for APTA by EBP. The analysis uses U.S. Department of Transportation benefit-cost guidance, industry-standard economic modeling, and comprehensive transit data to project impacts through 2045. All figures are in 2023 dollars.