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Federal Draft Threatens Fare‑Free Buses as NYC Weighs Fair Fares Expansion

A draft federal plan jeopardizes fare-free service, pushing New York toward a broader discount program that advocates say can roll out quickly.

Overview

  • The Transportation Department is circulating draft language for the next surface transportation bill that would require large, federally funded transit agencies to charge fares, using thresholds of populations over 200,000 and bus fleets over 100 vehicles.
  • The draft cites financial sustainability and safety concerns and allows exemptions for seniors, people with disabilities, children, students, veterans, and limited special events such as the World Cup or Olympics.
  • The proposal could clash with Mayor Zohran Mamdani’s pledge to eliminate bus fares citywide and would affect other systems that have offered free buses, including in Kansas City, Richmond, and Albuquerque.
  • A new Riders for Affordable Transit coalition urged City Hall to expand Fair Fares with automatic enrollment, offer free rides up to 150% of the federal poverty level and half fares up to 300%, and move toward free bus and paratransit service.
  • Advocates estimate free buses would cost about $1 billion versus roughly $421 million for the proposed Fair Fares expansion, as the mayor’s office says it is reviewing the plans given a reported $12 billion budget gap and as MTA and state leaders question full fare elimination now.