Op-Ed: Looking for Efficiency? Fund Intercity Buses

Much less expensive than rail, intercity buses serve millions of Americans every year, but public subsidies are lacking.

2 minute read

April 24, 2025, 8:00 AM PDT

By Diana Ionescu @aworkoffiction


Los Angeles, California

Walter Cicchetti / Shutterstock

In an op-ed published inSmart Cities Dive, Kai Boysan, the CEO of Flix North America, an intercity bus operator, argues that funding and supporting intercity bus travel is a cost-effective way to improve transportation in the United States.

With their cost efficiency; flexible, demand-responsive operations; and minimal reliance on ongoing subsidies, privately operated intercity buses offer one of the highest returns on investment for federal transportation funding.

If the Trump administration is looking for efficiency, Boysan argues, intercity buses are the answer to expensive rail projects. “We estimate that intercity bus subsidies deliver more passenger-miles per dollar spent than any other mode of surface transportation — making them one of the highest-return investments for taxpayers while providing an essential service to millions, including some of the nation’s most vulnerable populations.”

Boysan’s obvious vested interest aside, intercity buses do serve some of the lowest-income Americans and offer links between rural and remote places that have few other transit options. According to Boysan, “Intercity buses connect more than 6,000 stations across the U.S., more than 12 times as many locations as long-distance passenger rail and commercial airlines.”

Boysan offers more reasons why investing in intercity bus service is efficient, scalable, and flexible. Targeted federal investments in infrastructure improvements, such as intermodal transportation hubs, could go a long way toward making bus travel more accessible, safe, and comfortable. “In addition, the government should encourage more partnerships between private intercity bus companies and public transportation agencies such as those that facilitate intermodal transportation. These partnerships could lower terminal unit costs per passenger, enhance safety and security through shared personnel and infrastructure and facilitate smoother intermodal transfers, ultimately leading to expanded service and increased ridership.”

Tuesday, April 22, 2025 in Smart Cities Dive

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