Fare free transit is great, but reliable services are better

Politicians are talking about the cost of transit–a valid and important issue impacting transit ridership. NYC Mayor-elect Zohran Mamdani utilized his campaign platform to shed more light on the policy idea. However, what people really need to increase their use of transit is reliable, frequent services. The concept of fare free transit is bold and has real benefits, but transit services need improved outcomes not measured exclusively by reduced costs.

Are the benefits of fare free transit what riders are looking for?

Fare free transit is not an unattainable goal for communities. In fact many cities across the country have experimented with removing fares including Albuquerque, NM, Tuscon, AZ, Boston , MA, and Denver, CO. Removing fare costs is a fundamental good that can make a huge difference for low-income transit riders that rely on these services multiple times a day. Lowering or fully removing the costs of services will also encourage ridership as studies across cities and states have reported, with a prime example being the City of Lawrence, Massachusetts that removed bus fares for two years in 2019 and increased ridership by 20 percent. Beyond the up front costs, fare free transit can also reduce “dwell time” or the amount of time it takes for passengers to pay and board. An analysis conducted by Merrimack Valley Planning Commission found that when their transit services went fare free, their dwell time decreased by half.

Despite these benefits, there are some disadvantages worth mentioning when considering removing fares for riders. Innately, if fare costs are removed, there is a loss of revenue for transit services. In 2024, the average U.S. transit agency funded 13 percent of operating expenditures through fares, so the removal of that revenue source would make an impact. The effect is even greater for larger transit agencies like for Miami-Dade Transit where farebox revenue generates 33 percent of operating costs. This means that removal of fares for riders would leave a large revenue shortfall for agencies and create the need to find additional funding elsewhere. Fare free transit may also negatively impact rider experience. Some studies have found that fare free systems see increases in vandalism, theft, and other public safety issues, but the correlation and potential ways to mediate these noted shifts require additional research.

Overall, removing the direct costs to transit riders should not be overlooked as a meaningful way to improve transit access. However, if local, state, and federal leaders are looking to improve livelihoods, they must build their transit systems and supporting policy platforms on what outcomes are most desired when it comes to improving transit services. Would you rather have a free bus that comes every 30 minutes or pay $2 for a bus that will come every 8 minutes? If the conversation is about the financial cost of transit to the rider, then time is money too. Infrequent fare free transit devalues low income people’s time by failing to account for the opportunity cost of their time waiting for a bus or train. Removing fares for transit users can thus improve transit affordability, but other improvements can meaningfully improve the usability of transit and increase ridership–particularly increasing frequency and improving reliability.

The benefits of reliability and frequency

Beyond reducing the direct cost to riders of transit, what riders overwhelmingly need is reduced travel times and increased reliability and frequency of services. A report conducted by Transit Center found that the two most important determinants of rider satisfaction were service frequency and travel time. Transit riders have also stated that whether the bus reliably arrives on time is the most important factor influencing their decision to ride transit. Reliable, timely service must thus be a core priority for transit systems and policymakers.

Reliable transit is vital for proper access to jobs, schools, community and healthcare resources. When transit services are sporadic and undependable, it interferes with riders’ ability to get to work, class, and doctor’s appointments on time. From a business or private sector perspective, unreliable transit can impact labor productivity by causing workers to be late and lead to a loss of profitability. On a personal level, poor transit schedules can increase stress and anxiety by not getting to their destinations in a timely manner.

Local leaders who want to be serious about improving transit for communities need to be as focused on reliability and frequency of service as they are on direct affordability. A major obstacle that slows down reliability is limited transit operations funds and lack of operators. Although the federal government has provided some funding opportunities for capital transportation projects, states and local governments are typically left to scramble for money for operations. Transit operating costs are the everyday expenses incurred by transit agencies such as paying workers, fueling and repairing equipment and other overhead expenses. Establishing a federal stream of funding to support transit operations, as recommended in T4A’s policy recommendations for upcoming transportation legislation, would provide needed relief for state and local governments while also improving services for individuals by increasing frequency and providing longer hours of service.

Any improvement to transit services is a win for everyone, but local and federal leaders should focus attention on what riders need just as much, if not more, than fare free transit: reliable and frequent transit.