Urban Mobility

The US Is Spending Billions On Transit Infrastructure. Will It Pay Off?

By Noah Weidner
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What’s worse: LA traffic or NY subways? While urban dwellers might debate this endlessly, cities across America are tackling these mobility nightmares head-on. They are investing billions in alternatives to highways and beltways, aiming to catch up with Asian and European countries that already move millions of people daily.

Going places: Major urban centers are undertaking generational upgrades and expansions to their transit infrastructure — spending billions on light rail, rapid bus transit, and other alternatives to car-dependent transportation. This year, the US budget authorized a record amount of federal funding for public transit, fueling new projects, with 15 openings in 2023 and up to 15 expected in 2024. These efforts could help reduce commutes, boost economic opportunity, and ease road congestion across the country.

  • Seattle and Phoenix, the newest light rail systems in the US, now have 70K and 34K daily riders, respectively, with plans to more than double their track mileage by 2040.
  • Los Angeles is working on 28 transit projects as it prepares to host the 2028 Olympics, including light rail and subway expansions that will make the games “transit-first.”

Mind the Gap

While some metro areas are rapidly expanding transit options, many of America’s largest cities are struggling to fund and complete big upgrades — a byproduct of the slow and ongoing downtown recovery across US cities.

  • A pause on congestion pricing in New York City created a $15-17B budget gap, delaying two major transit expansions — the Interborough Express and the Second Ave Subway.
  • San Francisco’s BART and Chicago’s CTA have also faced budget troubles and less reliable schedules, which could require taxpayer intervention.

Transit renaissance or cost suck? Many of America’s public transit systems are funded by taxpayers, fare revenues, and government support — similar to US roadways. However, with downtown areas still dealing with post-COVID outflows, many cities will have to wait to see if their long-term ridership projections pay off. More importantly, they’ll need to determine whether the multi-billion-dollar price tags for transit expansion will deliver the desired economic growth.