On Thursday, the American Public Transportation Association urged Congress to provide an additional $23.8 billion in emergency funding to America’s public transit agencies.
In a letter to Sen. Mitch McConnell (R-KY) and Chuck Schumer (D-NY) and Reps. Nancy Pelosi (D-CA) and Kevin McCarthy (R-CA), APTA said an economic analysis done by EBP US Inc. determined the public transportation industry would face a $23.8 billion shortfall through the end of 2021 due to decreased revenues and increased costs.
In March, the Coronavirus Aid, Relief and Economic Security (CARES) Act, provided the public transportation industry with $25 billion. However, EBP’s independent analysis said that money would not be enough to make up for the industry’s losses.
“The $25 billion that was provided by the CARES Act was a lifesaver for public transit services, but we now have a more complete picture of the extraordinary and devastating impact,” APTA President & CEO Paul P. Skoutelas said. “These additional funds are critical to continue serving essential workers and make sure that we can help get our country back to work and to other activities that are so important for our economic recovery.”
Skoutelas said efforts to combat the spread of COVID-19, such as stay-at-home orders, have drastically reduced state and local government revenues leaving them to slash budgeted transit funding. Additionally, other methods of funding, such as farebox, parking, and taxes, have also decreased dramatically. Skoutelas estimated that transit far revenue has dropped by 86 percent over the past month.
EBP’s report said the economic impact of decreased investment in public transit could cost the country 37,000 construction jobs in 2020 and another 34,000 in 2021.
“As our nation’s transit agencies work to maintain and restore essential services, federal support is critical to ensure that public transit agencies can reposition themselves to survive and help our communities and nation recover from the economic fallout of the pandemic,” the letter said.
APTA asked Congress to provide $19 billion through the Emergency Relief Program; and another $4.75 billion provided through Urbanized Area Formula Grants, Seniors and Individuals with Disabilities Formula Grants, and Rural Area Formula Grants.
Additionally, the group urged Congress to pass the Surface Transportation Authorization Act before its expiration in September to invest in infrastructure that would support jobs and help the economy.