New independent analysis shows public transportation faces $39.3B shortfall

Jan. 29, 2021

APTA says transit funding needs to continue to grow due to ongoing losses of ridership and revenue

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, APTA says transit funding needs to 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,” APTA President and CEO Paul P. Skoutelas said in a statement. “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, APTA says 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, APTA says. According to a January 2021 APTA survey of public transit industry businesses, 76% of businesses have seen a reduction in their transit industry business as a result 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.



Sponsored Recommendations

The Science Behind Sustainable Concrete Sealing Solutions

Extend the lifespan and durability of any concrete. PoreShield is a USDA BioPreferred product and is approved for residential, commercial, and industrial use. It works great above...

Proven Concrete Protection That’s Safe & Sustainable

Real-life DOT field tests and university researchers have found that PoreShieldTM lasts for 10+ years and extends the life of concrete.

Revolutionizing Concrete Protection - A Sustainable Solution for Lasting Durability

The concrete at the Indiana State Fairgrounds & Event Center is subject to several potential sources of damage including livestock biowaste, food/beverage waste, and freeze/thaw...

The Future of Concrete Preservation

PoreShield is a cost-effective, nontoxic alternative to traditional concrete sealers. It works differently, absorbing deep into the concrete pores to block damage from salt ions...