Kansas City; Raleigh; Richmond; Olympia; Tucson; Alexandria, Virginia; and other cities are testing dropping fares on their transit systems. Denver is dropping fares across its system this summer. Boston is piloting three zero-fare public bus routes, and New York City is expected to test free buses on five lines. Eliminating fares gives a badly needed boost to ridership, removes cost burdens— particularly for lower-income riders -— and reduces boarding times at stops.
Replacing fares Fare-free advocates say that transit agencies must reduce their dependence on fare collections, which fluctuate and place the greatest financial burden on low-income riders. But fares are a critical source of funding for transit agencies, and they have to make up the lost revenue elsewhere. Fares made up, on average, 12.5% of transit agencies’ operating expenses in 2021, down from 31.4% in 2019, according to the American Public Transit Association.