Keeping Transit on Track: Solving the Workforce and Funding Crunch

The New Reality for Transit Agencies

Public transit is the backbone of urban life, connecting people to their places of work, schools, healthcare and more. Today, however, that backbone is under pressure. Agencies across the country are navigating a difficult mix of budget shortfalls, rising costs and workforce shortages that threaten service quality and long-term sustainability.

The pandemic accelerated these pressures. Ridership fell sharply, revenues dipped and costs climbed. Now, as communities depend more than ever on reliable, equitable transit, leaders are at a crossroads: how can they sustain service today while building resilience for tomorrow?

The Double Bind: Shrinking Budgets and Rising Costs

Many transit agencies are still operating below pre-pandemic ridership levels. At the same time, operational costs are climbing. This is because:

Inflation and supply chain disruptions have pushed up the price of vehicles, parts and fuel.
Labor costs are rising as agencies compete for a limited workforce.
Some systems are weighing fare increases or service cuts, which are short-term measures that risk driving riders away and weakening long-term recovery.

This “double-bind” makes it clear that traditional fixes are no longer enough.

Workforce Woes: Shortages Put Service at Risk

The funding challenge is compounded by a workforce crisis. Across the U.S., agencies are struggling to recruit and retain bus drivers, maintenance technicians and other essential staff. Factors include:

An aging workforce: Many employees are nearing retirement.
A competitive labor market: Agencies face tough competition from other industries.
Changing skillset requirements: The transition to electric fleets requires new technical expertise.

Without enough people, service reliability suffers, impacting communities that rely on public transit the most.

Federal Funding: A Historic Opportunity

There is a reason for optimism. Federal initiatives, such as the U.S. Infrastructure Investment and Jobs Act (IIJA), are delivering unprecedented levels of funding for public transit. This investment opens the door to:

Fleet electrification and charging infrastructure to meet sustainability goals.
Facility modernization to improve safety, efficiency and workforce productivity.
Service expansion to support growing urban and suburban populations.

Funding is only part of the equation. Agencies must ensure that all of the money received is invested wisely, with accountability and long-term outcomes in mind.

Rethinking Resilience in Transit

Transit leaders are being asked to do more than manage operations; they must reimagine how systems are built, staffed and sustained. That means:

Linking capital planning with long-term service goals.
Prioritizing workforce development alongside infrastructure investments.
Embedding sustainability and equity into every decision.

The agencies that succeed will be those that view today’s challenges not as roadblocks, but as an opportunity to modernize and future-proof transit systems for the communities they serve.

The Path Forward

Public transit is at a crossroads. While new funding and technologies open the doors to modernization, limited resources, time and workforce capacity continue to pose challenges. Yet within these challenges lies an opportunity; the chance to reimagine how transit serves communities. By investing strategically, embracing modern digital tools and strengthening workforce resilience, agencies can turn uncertainty into lasting progress. Acting decisively today will help ensure public transit remains a trusted, reliable cornerstone of mobility for generations to come.