METRO Magazine Logo
MenuMENU
SearchSEARCH

Failure to address public transit infrastructure resulting in lost revenues

Failing to address America’s $90 billion backlog of public transit modernization needs, also referred to as State of Good Repair, results in a loss of $340 billion in business revenue to the U.S. economy over a six-year period, according to an new APTA study.

May 18, 2018
Failure to address public transit infrastructure resulting in lost revenues

 

3 min to read


Decades of under investment in America’s aging bus and rail public transit infrastructure has a negative effect on business revenue and results in lost jobs and wages, according to a new study from the American Public Transportation Association.

Failing to address America’s $90 billion backlog of public transit modernization needs, also referred to as State of Good Repair, results in a loss of $340 billion in business revenue to the U.S. economy over a six-year period. This is based on the study, “The Economic Cost of Failing to Modernize Public Transportation,” which was conducted by the Economic Development Research Group Inc. for APTA. The study was released during National Infrastructure Week.

Ad Loading...

The authors of the report examined the public transportation modernization needs nationwide and performed in-depth case studies of six transit systems: the Massachusetts Bay Transportation Authority, Chicago Transit Authority, Metropolitan Atlanta Rapid Transit Authority, Southeastern Pennsylvania Transportation Authority, San Francisco Municipal Transportation Agency, and Washington Metropolitan Area Transit Authority. The report also examined modernization needs in bus and bus facilities which were applicable to systems like the Central Ohio Transit Authority.

“Our failure as a nation to address America’s public transit modernization needs has wide-ranging negative effects because lost time in travel makes a region’s economy less productive,” said APTA President/CEO Paul P. Skoutelas. “Congress has an opportunity in the current fiscal year 2019 Appropriations process to help address the nation’s aging public transit infrastructure.”

Modernization deficiencies in the nation’s public transit infrastructure result in a decrease of $180 billion in Gross National Product. This includes a loss of $109 billion in household income over six years and 162,000 jobs over the same time frame. The authors of the study note that failure to modernize the nation’s aging public transit infrastructure adds time and delays to commutes. This, in turn, slows down workers’ economic output which directly impacts business sales in a regional economy.

In addition, the quality of businesses that locate in an area is tied to the efficiency of a transportation system, and this directly impacts workers’ earning potential. For example, officials at Amazon are searching for a second headquarters in North America. With the addition of this new $5 billion facility, Amazon will generate 50,000 high-paying jobs with yearly salaries of $100,000 or more. Amazon’s project summary describes the importance of an efficient transportation system as a part of its ideal location requirements. Specifically, the company notes “optimal access to mass transit — direct access to rail, train, subway/metro, and bus routes.”

“We thank Congress for their recent bi-partisan effort in passing its fiscal year 2018 budget and the President for signing it. This budget included significant increases in federal investment in public transit,” said Skoutelas. “While this is a positive step forward in helping to address the nation’s aging public transit infrastructure, this momentum must be maintained by providing similar funding levels for 2019.”

Ad Loading...

Skoutelas added, “We are also calling on the Administration and Congress to address the urgency of the Highway Trust Fund solvency, which expires in just over two years. This will provide predictable, multi-year funding to not only address America’s deteriorating infrastructure but provide for continued investment to help grow the nation’s economy.”

America’s aging public transit infrastructure is in grave need of investment. In their latest report card, the American Society of Civil Engineers graded the nation’s public transportation infrastructure a D minus. That is the lowest grade ASCE gave to any category of U.S. infrastructure.

More Management

Railby StaffFebruary 2, 2026

Chicago Region Transit Ridership Grows in 2025

The region’s fixed-route system finished out the year with a total of 373.5 million rides. Adding 12.3 million rides over 2024 represents an increase that is equal to the annual transit ridership of Kansas City.

Read More →
New Mobilityby StaffJanuary 30, 2026

Chicago's Pace Expands VanGo Mobility Program

The service is a flexible, reservation-based transit service designed to close the first- and last-mile gaps and connect riders to employment for just $5 per day.

Read More →
A blue and white graphic with text reading "Foothill Gold Line: Design Contract Award & 2026 Board Leadership."
Managementby StaffJanuary 30, 2026

Foothill Gold Line Board Awards Claremont Extension Design Contract to Parsons, Maintains Board Leadership for 2026

Parsons wins the $60M Claremont Extension design contract as the Foothill Gold Line board reaffirms leadership during a pivotal project phase.

Read More →
Ad Loading...
Technologyby StaffJanuary 29, 2026

Houston METRO Introduces RideMETRO Fare System

The upgraded system, which went live earlier this month, supports METRO’s METRONow vision to enhance the customer experience, improve service reliability, and strengthen long-term regional mobility.

Read More →
Managementby StaffJanuary 29, 2026

Valley Metro Sees Strong Ridership Growth in 2025

The agency ranked top five among mid-sized U.S. transit systems, defined as agencies with 15 million to 50 million annual trips.

Read More →
A b2x rewards logo and graphic reading "Read. Learn. Earn."
Managementby StaffJanuary 29, 2026

Bobit Business Media Launches B2X Rewards to Engage Transit Industry Professionals

The new program rewards B2B audience readers for engaging with trusted content and suppliers, earning them points toward events, travel, and more.

Read More →
Ad Loading...
Busby StaffJanuary 29, 2026

Subway Customer Satisfaction Reaches Record High, New York MTA Says

The subway system saw increases across all key metrics, with 62% of subway riders reporting they feel satisfied with the system overall.

Read More →
Busby StaffJanuary 28, 2026

New Orleans RTA Reaches Agreement with ATU

The agreement provides competitive wages and reflects strong labor-management collaboration, positive working relationships, and a shared commitment to building a world-class transit system for the community, said RTA CEO Lona Edwards Hankins.

Read More →
Managementby StaffJanuary 27, 2026

Keolis Retains Virginia Railway Express Contract

The new contract for Keolis and VRE will commence in July 2026, with the potential to expand to 15 years.

Read More →
Ad Loading...
Busby StaffJanuary 27, 2026

California's OCTA Advances 2026 Initiatives Centered on Balance and Sustainability

The priorities are outlined in the 2026 Board and CEO Initiatives and Action Plan, which serves as a roadmap to guide the agency’s work throughout the year and ensure continued progress and accountability on voter-approved transportation investments and essential mobility services.

Read More →