America’s public transit system is just one more infrastructure system in dire need of improvements. 24,000 buses, 5,000 rail cars, 200 stations and thousands of miles of track, signals and power systems make up our public transit system and unfortunately face a multibillion-dollar backlog of repairs. That’s why the $1.2 Infrastructure Bill (officially known as Infrastructure Investment and Jobs Act) is so important to our nation. It will not only help rebuild our crumbling infrastructure system but will bolster our economy and increase public safety. Of the $1.2 trillion plan, public transit is set to receive $39 Billion dollars to help modernize and improve accessibility.i The new federal funding is the largest investment in the history of public transit and will be used to rebuild the outdated transit infrastructure currently in place after many years of operation
A Brief History of Public Transit
Public transit began back in the early 1800s with steam ferries transporting people from one city to another in different states, as time went by and cities grew, it began to include more transit vehicles such as, streetcars, commuter rails, subways, and buses. However, as the rise of automobile ownership took over, mass transit began to see a decline in the 1920’s, but by the 1960’s congressional subsidies began to revitalize public transit and cities such as San Francisco and Washington DC saw the opening of heavy rail systems. As time moved forward the concern for environmental sustainability began to rise and renewed interest in improving and developing public transit began to take hold.ii
Today the public transit sector is an $80 billion industry that currently employs nearly 450,000 people and has approximately 6,800 organizations providing public transportation across the country. Each weekday people board some form of public transportation 34 million times.iii
How the Infrastructure Bill Will Help Public Transit
The funds will be used to repair and replace the outdated infrastructure, help to modernize bus and rail fleets, make stations more accessible to the elderly and those with disabilities, and to bring transit service to communities that currently lack public transportation options, communities such as those of color who are twice more likely to use public transportation. The funding will also help replace thousands of transit vehicles and buses, with new environmentally friendly, zero emission vehicles.i
Economic Opportunities,
Public transportation provides significant economic opportunities for Americans in the United States and according to the American Public Transportation Association, every $1 billion invested helps to create approximately 50,000 jobs. Additionally, every $1 invested in public transit generates an economic return of $5. And every $10 million in both capital and operating investment yields $30 million and $32 million respectively in increased business sales.iii Any federal funding that goes into the United States public transit industry should generate a considerable amount of positive economic return for the country over time.
Saves Money, Safer Travel, Reduces Carbon Footprint
For most Americans the second largest expenditure they have is owning and maintaining their vehicle. Sixteen cents of every dollar goes to the maintenance of a car or truck, which it includes buying the vehicle and paying for gas. On average, a household could save $10,000 by using public transit. Additionally, using public transit is safer than travelling by car. An individual can decrease their chance of being in an auto accident by 90% if they choose to use public transit. Also, public transportation has a positive impact on the environment’s sustainability, it can help reduce carbon emissions by 63 million metric tons and saves 6 billion gallons of gasoline in the U.S. annually.iii
As we wait for the funding to be distributed from this bill, it’s important to note that fixing our aging infrastructure is better for everyone around the nation, both for individuals and businesses. It would have a positive impact on our economy and can help communities and the environment as well. So, it is wise to prepare your business for the potential influx of new bidding opportunities related to this bill, but also know that there are plenty of opportunities and projects available now that your business can bid on.
Aaron Goodman | mdf commerce
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[1] “Fact Sheet: Historic Bipartisan Infrastructure Deal”. 2021. White House Briefing Room. Whitehouse.gov. 08 Oct. 2021
[2] J. Young. “Infrastructure: Mass Transit in 19th and 20th Century Urban America”. 2015. American History. Oxfordre.com. 08 Oct. 2021
[3] “Public Transportation Facts”. 2021. American Public Transportation Association. Apta.com. 08 Oct. 2021
