Individual incentives for public transportation
Local governments can invest in this strategy using State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA).
- This strategy provides household assistance that can help address the negative economic impacts of COVID-19. The U.S. Department of Treasury has indicated that strategies that help achieve this outcome are eligible for the use of Fiscal Recovery Funds.
Investments in this strategy are SLFRF-eligible as long as they are made in qualified census tracts or are designed to assist populations or communities disproportionately impacted by COVID-19.
Program basics
- Consist of reimbursements, discounts, pretax deductions, or other financial methods of motivating individuals to use public transportation
- Aim to boost use of public transit and physical activity, potentially reducing obesity rates and increasing active transportation
- Implemented at various levels of government, including cities, states, and the federal government
- Variables such as flexible work schedules and changes in gas prices have been shown to play a role in influencing the uptake of transit use
Strength of evidence
Evidence level: Strong (second-highest tier)
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Strong (second-highest tier)
Ranked as having the second-highest level of evidence by County Health Rankings and Roadmaps
Target population
Community-wide
Program cost
Approximately $250 per month per user
Implementation locations
- Nationwide
- Subsidized transit fares: King County, WA
Dates active
Not available
Outcomes and impact
- Increased public transit use
- Increased physical activity
- Increased transportation revenue
- Reduced transportation costs for employers and employees
Keys to successful implementation
- Note: This content is under review
- Communities without strong transit access will first require baseline investments in service improvements in order for incentives to increase utilization
- Increasing private vehicle user fees increases public transit use and reduces automobile use
- Transit pass incentive programs are particularly successful in increasing public transit use among college students
- Price sensitivity to transit fares depends on transit dependency, type of trip, time of day, and geographic conditions such as population density and character of the built environment
- Programs may include transportation subsidies, transit passes, and energy tax credit awards to organizations promoting the use of public transit.
