The bill preserves targeted fare relief for vulnerable riders and allows locally funded universal free transit via waiver, but bars federally funded systemwide free fares — shifting the trade-off onto local funding, administrative hurdles, and continued fare burdens for middle-income riders.
Low-income riders retain access to targeted free or reduced fares, preserving affordability for the most vulnerable transit users.
Seniors continue to receive free or reduced fares, maintaining mobility and access to services for older adults.
Students remain eligible for discounted or free transit, supporting access to education and lowering travel costs for learners.
Cities and transit systems are effectively blocked from adopting federally funded universal fare-free policies, preventing broad fare elimination that could boost ridership and simplify operations.
Middle-income riders who would benefit from systemwide free transit remain reliant on fares, limiting access and potential cost savings for that group.
If jurisdictions pursue waivers to run universal free transit, the requirement to fund it with non-Federal dedicated revenue could shift significant fiscal pressure onto local taxpayers and businesses.
Based on analysis of 2 sections of legislative text.
Prevents federally assisted transit agencies from adopting universal fare‑free policies while allowing targeted fare waivers and a waiver if dedicated non‑Federal operating revenue is identified.
Official title: To amend title 49, United States Code, to prohibit universal free fare policies on public transportation, and for other purposes.
Introduced March 5, 2026 by Scott Perry · Last progress March 5, 2026
Prohibits transit agencies that receive Federal assistance under chapter 53 from adopting a universal fare‑free policy that lets all riders travel for free. Targeted free or reduced‑fare programs for groups such as seniors, low‑income riders, students, or riders covered by payment agreements remain allowed. The Transportation Secretary may waive the ban if the agency identifies a dedicated non‑Federal operating revenue source to fund a universal fare‑free program.