As companies encourage employees to work from home, big cities across the country are reporting severe drops in public transit ridership.
One day last week, a million fewer New Yorkers rode the subway compared to a year ago, a 20% drop. If it keeps up, mass transit systems across the country could be facing budget crises.
Depending on the city, fares provide anywhere from 15% to 50% of a transit system’s income.
Ben Fried at the nonprofit TransitCenter said public transit budgets are typically balanced on a knife’s edge.
“Any sort of shock threatens to tip them into the red, and that can result in service cuts,” Fried said. Also, less frequent repairs. Buses might break down more often.
“It is something that will have to be accounted for in rescue packages as part of the coronavirus response,” he said.
The San Francisco Bay Area’s transit system says it’s losing $500,000 a day in lost fares.
Baruch Feigenbaum, assistant director of Transportation Policy at the Reason Foundation, said the federal government did step in after 9/11 and the 2008 financial crisis.
“You also had some states and some cities stepping up and spending more money,” he said. “Or in fact just borrowing money.”
Still, he said, government aid can only help so much for systems that have already experienced years of declining ridership.
COVID-19 Economy FAQs
What’s the latest on the extra COVID-19 unemployment benefits?
As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.
With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?
The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.
Which businesses got Paycheck Protection Program loans?
The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.
Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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