Funding and Financing for Public Transportation at the Local, Regional, and State Levels

Public transportation agencies in the United States rely on a complex mix of federal, state, regional, and local funding and financing mechanisms. Adequate, reliable, and stable revenues for capital and operating expenses are critical to provide effective public transportation services. TCRP has conducted numerous projects to help public transportation agencies and stakeholders better understand and pursue funding and financing options. TCRP Report 129: Local and Regional Funding Mechanisms for Public Transportation (2009) developed a typology that presents a broad range of funding sources in six categories: traditional tax- and fee-based funding sources; common business, activity, and related funding sources; revenue streams from projects; new “user” or “market-based” funding sources; financing mechanisms; and fare policy and strategy. The report defines funding sources in each category, presents the nature and frequency of their use by size and type of transit agency in 2007, identifies criteria for selecting and evaluating sources, and provides steps for enacting new funding sources. The report focuses on the first two categories through interviews and data collected from 60 transit agencies. Nearly 20 years have passed since the research for TCRP Report 129 was conducted. Public transportation agencies continue to need adequate and reliable funding and financing for operating and capital expenses. Consequently, research is needed to assess and present what has remained constant, what has changed, what trends have emerged, and what factors are anticipated that may impact public transportation funding and financing in the future. OBJECTIVE: The objective of this research is to develop a resource that presents and analyzes current and emerging options for operating and capital funding and financing for public transportation services in the United States. The resource should (1) address local, regional, and state funding and financing options for the near- and long-term and (2) serve large, medium, and small public transportation agencies in urban and rural areas. The primary audience for this resource includes public transportation agencies and relevant stakeholders. The resource should address: (1) Update TCRP Report 129. What has evolved regarding public transportation funding and financing during the past 20 years. More specifically, (a) What are trends in how public transportation is funded and financed? (b) What factors drive different trends? Based on the typology presented in TCRP Report 129, which options were widely pursued and implemented over the last 20 years, and what were the key strengths and shortcomings of these options? (c) What new and emerging funding and financing options exist, and which options have not been widely adopted? (2) Funding shortfalls. How are shortfalls in capital and operating funding affecting public transportation agencies in the United States? How are funding shortfalls being mitigated and what lessons have been learned from the post-COVID “fiscal cliff”? (3) Local and regional support for public transportation. What is the range of local and regional funding mechanisms, and how do these mechanisms relate to the characteristics of different areas? (4) State options for public transportation funding and financing. How do states differ in their current roles and in the opportunities they provide for funding and financing public transportation? (5) Partnership opportunities. How can public transportation agencies develop and leverage partnerships to expand funding and financing options for public transportation? What public and private funding and financing approaches have been identified and secured for public transportation? (6) Implementation strategies. What analyses and communication strategies have public transportation agencies used to demonstrate the impacts of funding shortfalls and the need for funding? Given limitations on directly advocating for funding, how can public transportation agencies navigate funding discussions to maintain existing funding sources and secure new ones? How can state and national associations communicate with and educate stakeholders about the need for increased and more stable funding and financing for public transportation?

• Record URL:
  • http://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=6004
• Supplemental Notes:
  • Contract to a Performing Organization has not yet been awarded. Contract Time: 30 months. Status: Selection of the research team will be made summer 2026.

Language

• English

Project

• Status: Proposed
• Funding: $350,000.00
• Contract Numbers:

  Project H-64

• Sponsor Organizations:

  Transit Cooperative Research Program

  Transportation Research Board
  500 Fifth Street, NW
  Washington, DC    20001

  Federal Transit Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Project Managers:

  Schwager, Dianne

• Start Date: 20260707
• Expected Completion Date: 0
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Financing; Public transit
• Geographic Terms: United States
• Subject Areas: Finance; Public Transportation;

Filing Info

• Accession Number: 01973731
• Record Type: Research project
• Source Agency: Transportation Research Board
• Contract Numbers: Project H-64
• Files: TRB, RIP
• Created Date: Dec 8 2025 7:55PM