Research Reveals Subsidized Transit Is More Efficient

Contrary to some arguments, public transit networks with higher government subsidies have higher ridership and more farebox revenue.

1 minute read

February 5, 2024, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Close-up of hands holding straps on public bus.

mrcats / Adobe Stock

New research indicates that publicly subsidized transit systems are more efficient, writes Kea Wilson in Streetsblog USA. Regions with the highest subsidies also generate the most revenue from fares.

In a fascinating recent analysis, researchers found that metro areas that received more government subsidies per capita were more likely to run buses and trains with lots of passengers on board, rather than running inefficient, wasteful routes with just a few heavily subsidized riders per vehicle.

The analysis debunks the common argument that government subsidies fail to improve transit systems. According to the researchers, other studies often fail to account for regional transit networks that utilize more than one agency. “Instead, the new study looks at the simple ratio between how many miles transit passengers in the region collectively travel and how many miles transit vehicles in that region collectively travel, giving a clear, easy-to-understand picture of how crowded (or empty) subsided buses and trains are likely to be.”

The study shows that government subsidies for transit “seem to provide a strong foundation for transit networks to thrive — and ultimately, make significantly more money at the farebox than they would without support.”

Monday, February 5, 2024 in Streetsblog USA

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

May 7, 2025 - Diana Ionescu

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

May 2, 2025 - SD News

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Adults and children planting trees during Arbor Day event in Lakewood, Colorado.

Lakewood Celebrates Arbor Day and Strengthens Urban Forestry Legacy

Lakewood celebrated Arbor Day and its 43rd year as a Tree City USA community with a youth-led tree planting event at O’Kane Park, reinforcing its long-standing commitment to urban forestry and environmental education.

15 minutes ago - City of Lakewood

Cars in traffic entering Holland Tunnel in New York City.

NYC Congestion Pricing Continues to Show Positive Results

While the Trump administration attempts to revoke the program’s federal approval, congestion pricing continues to reduce traffic, speed up bus travel times, and improve air quality in Manhattan.

1 hour ago - Governing

Close-up of elevated planter box in sidewalk with alternating grass and concrete patches.

Grassroots Dutch Movement Replaces Pavement With Green Space

Neighbors engage in a practice known as “tegelwippen,” picking up paving stones and replacing them with permeable surfaces, often with the support of local governments.

2 hours ago - Reasons to Be Cheerful

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.