Federal aid to public transportation dispersed because of the impact of COVID-19 on travel will come to an end next summer, and transportation systems will be unlikely to make up the difference, according to a new report.
Bloomberg reported that as the end of the aid approaches, public transportation use is only at 80% of 2019 levels. Washington Metropolitan Area Transit Authority, which serves Washington, DC and the surrounding area, is expected to lose $750 million on the metro system in 2025 because of the drop in users.
“There is no question we have a really big challenge, and it’s not a one-year challenge, it is multiyear,” WMATA head Randy Clarke told Bloomberg.
Other public transportation systems are projecting similar losses of hundreds of millions, like in New Jersey, which is projecting a shortfall of $119 million from July 2024 to July 2025. For the following 12 months, they say it’ll be more than $900 million.
Some state and local governments are attempting to lessen the hardship by introducing new taxes and giving grants to the public transportation systems.
The state of New York will give a one-time payment of $300 million to New York City’s Metropolitan Transportation Authority, which is projecting a $3 billion loss in 2025. The governor has also established a 0.6% payroll tax on New York City businesses to provide further funding to the MTA.
Meanwhile, other systems are likely going to have to start making cuts to make up the difference.
