DOT Proposal Aims to Restrict Federal Funding for Free Bus Transit

Move could impact programs in major cities like New York, Kansas City, and Albuquerque

Feb. 3, 2026 at 7:47pm

The Trump administration is proposing to prohibit federal funding for large cities that offer free bus transit, a move that could significantly impact transportation programs across the country. The proposal, obtained by POLITICO, would apply to transportation agencies in areas with populations over 200,000 and a fleet of more than 100 buses.

Why it matters

Free bus transit has become an increasingly popular policy in many major U.S. cities as a way to improve access to public transportation, reduce traffic congestion, and promote sustainability. This proposal could force cities to charge fares, potentially creating barriers for low-income residents who rely on free bus service.

The details

The proposed policy change would be part of an upcoming surface transportation bill that requires congressional approval. It could affect transit systems in cities like Kansas City, Richmond, and Albuquerque, all of which currently offer free bus rides. Kansas City, however, plans to start charging for buses in the coming months.

  • The Trump administration proposal was obtained by POLITICO in February 2026.

The players

U.S. Department of Transportation (DOT)

The federal agency proposing the policy change to restrict funding for free bus transit in large cities.

Kansas City

A city that currently offers free bus rides but plans to start charging fares in the coming months.

Richmond, Virginia

A city that currently offers free bus transit and would be impacted by the proposed DOT policy.

Albuquerque, New Mexico

A city that currently offers free bus transit and would be impacted by the proposed DOT policy.

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What’s next

The proposed policy change would need to be approved by Congress as part of an upcoming surface transportation bill.

The takeaway

This proposal could force major cities to charge bus fares, potentially creating barriers for low-income residents who rely on free public transportation. The policy change highlights the ongoing debate over the role of federal funding in supporting free or reduced-cost transit options in urban areas.