Federal Transit Funding Hits Record Highs as Ridership Lags

New report questions whether billions in spending are delivering results as commuting patterns shift

Published on Feb. 16, 2026

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A new report from the Committee to Unleash Prosperity is raising questions about the effectiveness of federal transit spending, which has reached record highs even as bus and rail usage continues to lag behind pre-pandemic levels. The report argues that structural flaws in how transit dollars are allocated, coupled with the rise of remote work, have led to a disconnect between funding and ridership.

Why it matters

The report highlights the growing disconnect between federal transit funding and actual ridership, raising concerns about the return on investment for billions of dollars in public spending. As remote work becomes more prevalent and commuting patterns shift, the report suggests it may be time to rethink how Washington funds public transportation.

The details

The report, authored by Wendell Cox, a senior fellow with the Committee to Unleash Prosperity, traces the federal transit program back to its 1960s origins, when it was intended to expand mobility for low-income residents and reduce traffic congestion and air pollution. However, the report notes that transit's commuter share has dropped from 12% in 1960 to under 4% in 2024, even as federal support has grown steadily. The report also highlights disparities in job access, finding that workers can reach 58 times as many jobs by car as by transit in the nation's 50 largest metropolitan areas.

  • Federal transit spending has reached record highs in recent years.
  • Transit's commute market share in the U.S. has dropped from 12% in 1960 to under 4% in 2024.
  • The average one-way commute is about 26 minutes by car, compared with 48 minutes by transit.

The players

Wendell Cox

A senior fellow with the Committee to Unleash Prosperity and the author of the report.

Committee to Unleash Prosperity

A group that released the report questioning the effectiveness of federal transit spending.

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What they’re saying

“Transit's commute market share in the U.S. has dropped from 12% in 1960 to under 4% in 2024.”

— Wendell Cox, Senior Fellow, Committee to Unleash Prosperity

“Generally, transit travel times are slower than commuting by car.”

— Wendell Cox, Senior Fellow, Committee to Unleash Prosperity

What’s next

The report suggests that with federal debt at historic highs and remote work reshaping commuting patterns, it may be time to rethink how Washington funds public transit and whether federal spending is aligned with how Americans actually travel today.

The takeaway

This report highlights the growing disconnect between federal transit funding and actual ridership, raising questions about the effectiveness of billions in public spending as commuting patterns shift. It suggests the need for a broader reassessment of federal transit policy to ensure it is aligned with the changing realities of how Americans commute.