New Starts, Growing Inequities: Federal and Local Public Transit Funding

Abstract

Equity concerns regarding local revenue sources are increasingly important in the United States, as local sales taxes for transportation increase amid perceived federal funding shortfalls. This study examines shifts in the federal role and local funding sources for public transit projects supported by the New Starts program. The analysis finds that total federal New Starts spending grew over this period, but was distributed across more costly projects, with a resulting decrease in the average federal share per project. As expected, there was increased sales tax use at the local level. The increase in local spending on transit should be met with concern. Prior research has established that sales taxes fail along both the beneficiary to pay and ability to pay equity principles. Thus, the recent massive commitment to expanding public transit infrastructure relies on concerning funding mechanisms and may also fail to prioritize the needs of those with limited accessibility.

Inequity Reduction in Road Maintenance Funding for Municipalities

“…How we pay for transportation, the sources of funds, and rules about their distribution are important aspects of equity (Lowe & Hall, 2019). In a study by Lee et al (2017), it was found that the distribution of transportation infrastructure funds for the improvement of communities often favors more advantaged groups (middle-class suburban neighborhoods).…”

Covid-19 Pandemic Impacts on Essential Transit Riders: Findings from a U.S. Survey

“…Intra-regional competition for these funds often means that low-income communities with lower civic or advocacy capacity are less likely to receive funding (Lowe et al, 2016). The mechanisms of federal funding and regional transportation planning through Metropolitan Planning Organizations (MPO) have clearly stated equity requirements, but funding decisions at the state and local level can bypass projects with an equity focus or introduce regressive funding mechanisms that lessen the positive impacts (Lowe, 2014;Lowe & Hall, 2019). Avoiding these mistakes and understanding how best to use available funds for those most in need is essential in moving forward.…”