METRO Magazine Logo
MenuMENU
SearchSEARCH

GRTC Awarded State Grant to Study Zero Fares

The $8 million state grant is being matched with local funds from the City of Richmond and Virginia Commonwealth University.

by Staff
December 21, 2021
GRTC Awarded State Grant to Study Zero Fares

Both GRTC fixed route and paratransit services will remain Zero Fare to study the benefits, impacts, and sustainability of Zero Fares as well as alternative fare collection methods.

Photo: GRTC

3 min to read


Virginia Department of Rail and Public Transportation (DRPT) announced it is awarding $8 million in state grant funding to GRTC to study Zero Fare impacts on RVA transit riders and the communities served by local transit. 

The $8 million state grant is being matched with local funds from the City of Richmond and Virginia Commonwealth University and will enable GRTC to remain in Zero Fare operations through the study period of July 1, 2022, through June 30, 2025, and possibly beyond, pending ongoing local support.

Ad Loading...

GRTC suspended fare collections on March 19, 2020, in order to limit close contact between Operators and passengers at the farebox with plans to remain Zero Fare using federal COVID relief dollars until June 30, 2022. Under this state grant, both GRTC fixed route and paratransit services will remain Zero Fare to study the benefits, impacts, and sustainability of Zero Fares as well as alternative fare collection methods.

“Pre-COVID, GRTC collected approximately $5 million annually from local bus riders commuting to or from essential jobs – many of whom were living at or below poverty," said Julie Timm, GRTC CEO. "Transit fares maintained a very real barrier keeping these members of our community from accessing critical resources such as food, health care, education, and better paying jobs. Under Zero Fares, our most vulnerable neighbors have no longer been forced to choose between the cost of transportation and the cost of food or medicine. They now have ready access to these essential resources through transit service, and they have the opportunity to spend their hard-earned dollars directly at the grocery store, the doctor’s office, or the pharmacy instead of the GRTC farebox – putting those dollars directly back into the local economy.”

Before the pandemic, ridership on GRTC local bus routes made up approximately 70% of total ridership compared to express bus riders making up only 5% of ridership.  The majority of local riders have annual household incomes of less than $25,000 with a quarter of riders making under $10,000 a year.  However, they were paying about $20 per week or more per person to ride the bus compared to most express riders who typically had bus passes fully subsidized by their employers. Pulse ridership, about 25% of all GRTC trips, was about 50% local bus riders pre-COVID.

As of November 2021, GRTC’s local ridership exceeds pre-pandemic ridership (up nearly 10% compared to ridership data in November 2019).

“To reduce barriers to transit for low-income individuals, the TRIP Zero Fare pilot will allocate $8 million in funding over the next three years to support system-wide zero fare for GRTC,” said Jennifer Mitchell, director of the Department of Rail and Public Transportation. “DRPT evaluated and prioritized projects based on CTB criteria and recommended funding to GRTC based on the defined and quantifiable measures of success, the collaborative development environment as evidenced by the support of various regional partners and local organization, and the ease of implementation. These pilot projects will provide increased access to our essential workforce who rely on public transportation for employment, education, healthcare, and basic human needs."

Ad Loading...

The net budget for GRTC’s Zero Fare program over three years is $20.4 million after removing over $1.2 million annually in fare collection costs. The DRPT $8 million grant steps down over three years from $4.5 million, to $2.5 million to $1 million respectively. 

More Rail

A rendering of the Amtrak New York Penn Station renovation
Railby StaffJune 9, 2026

Penn Station Transformation Advances with Design Unveiling

The historic redesign will transform the busiest transit hub in the Western Hemisphere from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors.

Read More →
Groundbreaking event for Second Avenue Subway Phase 2 TBM construction.
Railby StaffJune 9, 2026

Second Avenue Subway Phase 2 Advances into Major Construction Stage

New York Governor Kathy Hochul joined leadership from the MTA, elected officials, and Harlem community leaders to break ground on the major construction stage of the transformative Second Avenue Subway Phase 2 project.

Read More →
A man sits in a passenger rail seat and looks at his phone.
Railby Elora HaynesJune 8, 2026

The Invisible Infrastructure of Passenger Flow

What a seat reservation system on Austria’s Railjet trains reveals about the future of rider experience, and why U.S. agencies should pay attention.

Read More →
Ad Loading...
Aerial view of Caltrain's electric service.
Railby StaffJune 5, 2026

Caltrain Board Approves FY27 Budget, Endorses Efficiency Measures

The move ensures Caltrain service will continue operating as usual in the near term, but long-term financial challenges remain for the rail agency absent a new revenue source.

Read More →
Alstom purchasing site for Acela network manufacturing
Railby StaffJune 4, 2026

Alstom Acquires Delaware Site to Support Amtrak NextGen Acela Fleet

The company is investing more than $55 million to acquire and improve the property and will employ approximately 100 people at this site once it is operational.

Read More →
World Cup Crowds Will Test Transit Systems
ManagementJune 3, 2026

When Routine Fails: How Public Transit Must Adapt for the World Cup

The 2026 FIFA World Cup will test transit agencies’ ability to manage unpredictable travel patterns, making real-time data and operational flexibility critical to moving millions of visitors efficiently.

Read More →
Ad Loading...
A rendering of a California High-Speed Rail vehicle
Railby StaffJune 2, 2026

California Selects Team for Nation’s First True High-Speed Rail Track and Systems Contract

The board action follows completion of track installation at the 150-acre southern railhead in Kern County, which will serve as the staging and distribution hub for high-speed track and systems installation.

Read More →
Sound Transit Sounder train
Railby StaffJune 2, 2026

Seattle's Sound Transit Launches New Sounder Railcars into Service

Alstom manufactured all the cars under a $46.5 million contract and came into service in anticipation of summer crowds for soccer and baseball.

Read More →
Railby StaffJune 2, 2026

Alstom Partners With Universities to Build Rail Talent Pipeline

The partnerships include a new engineering scholarship fund at Alfred State College in Western New York and collaborations with transportation centers at the University of Pennsylvania and New York University.

Read More →
Ad Loading...
Managementby StaffJune 1, 2026

Chicago's NITA Act Moves Into Next Phase as Service Improvements Begin

Rider-focused improvements will begin rolling out across the system immediately as CTA, Metra, and Pace increase service this summer in the six-county region.

Read More →