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Federal Draft Threatens NYC Free-Bus Plan as Advocates Press Fair Fares Expansion

A new coalition is pushing a broader, automated discount program as a cheaper, near-term alternative to universal free buses under looming federal constraints.

Overview

  • An unreleased U.S. DOT draft obtained by Politico would require large, federally funded transit systems to charge fares, with exemptions for groups like seniors and students and carveouts for major events.
  • The draft targets agencies serving over 200,000 people with fleets above 100 buses and would need Congressional approval as part of the next surface transportation bill.
  • At a City Hall rally, the Riders for Affordable Transit coalition urged the city to expand Fair Fares, offering free rides up to 150% of the federal poverty level and half fares up to 300%, with automatic enrollment tied to benefits like SNAP.
  • Advocates estimate expanded Fair Fares could cost about $421 million at most versus roughly $1 billion annually for systemwide free buses, citing usage rates and current program participation.
  • Mayor Zohran Mamdani’s office says it is reviewing the proposal in the face of a cited $12 billion budget gap, while MTA chief Janno Lieber and Governor Kathy Hochul question eliminating fare revenue and Rep. Rick Larsen criticizes the federal draft.