The bill preserves federal transit funds and targeted fare relief for vulnerable riders while blocking use of Federal dollars for systemwide free fares — shifting costs and implementation burden to localities, which may lead to lost universal fare benefits, revenue shortfalls, or service cuts where local funding isn't available.
Low-income riders, seniors, and students keep access to free or reduced fares through targeted local programs, preserving affordability for vulnerable riders even if universal free fares aren't federally funded.
State and local transit agencies retain the ability to implement systemwide free fares if they secure dedicated non‑Federal operating funding and obtain a Secretary waiver, preserving a path for jurisdictions that can fund it locally.
Taxpayers and other transit grant recipients are protected because federal transit funds are prohibited from subsidizing systemwide free fares, leaving limited Federal grant resources available for capital projects and other priorities.
All riders lose the benefit of systemwide free fares where localities cannot identify non‑Federal funding to replace fare revenue, removing a universal affordability measure for many commuters and transit users.
Local transit agencies may face revenue shortfalls that force service cuts or fare increases if targeted programs don't fully replace the funding gap created by ending federally supported systemwide free fares.
State and local agencies incur administrative burdens and potential delays to secure dedicated non‑Federal funds and obtain Secretary waivers to implement universal free fares, slowing policy changes and adding compliance costs.
Based on analysis of 2 sections of legislative text.
Bars federal transit grant recipients from offering universal fare‑free service while allowing targeted fare relief and a waiver if funded by dedicated non‑Federal operating revenue.
Prohibits recipients of federal transit assistance from adopting universal fare‑free public transit policies that let all riders ride for free. Targeted fare‑free or reduced‑fare programs for seniors, low‑income riders, students, and certain employees/members remain allowed, and the Secretary of Transportation can waive the prohibition if a recipient shows a dedicated non‑Federal source of operating revenue to fund universal free fares.
Introduced March 5, 2026 by Scott Perry · Last progress March 5, 2026