COVID-19

Transit agencies get $14 billion in relief, with ridership still down

Andy Uhler Dec 29, 2020
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A woman exits a Brooklyn subway station on Nov. 18, 2020, in New York City. Spencer Platt/Getty Images
COVID-19

Transit agencies get $14 billion in relief, with ridership still down

Andy Uhler Dec 29, 2020
Heard on:
A woman exits a Brooklyn subway station on Nov. 18, 2020, in New York City. Spencer Platt/Getty Images
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You’re probably getting the picture that there’s a lot happening in the $900 billion COVID relief bill. Well, it also includes $14 billion in aid for U.S. transit agencies. Ridership is down drastically, and many are struggling to stay afloat.

The Metropolitan Transportation Authority in New York and Bay Area Rapid Transit system in San Francisco will get a hefty share, but the money will impact transportation agencies throughout the country. And many are worried this is just a Band-Aid.

The $14 billion is less than half of what the industry was lobbying for. “First, we just need to stop the bleeding,” said Ben Fried, with the think tank TransitCenter. He said with people across the country still working from home and some afraid of catching COVID-19 on the bus, this relief will stop the bleeding for a few months.

“The best estimates indicate that there will be a budget crunch for transit agencies going into 2021 and probably lasting through 2022,” Fried said. “So this won’t be the last aid package they need.”

He said this money will allow transportation agencies to avoid doomsday scenarios of thousands of layoffs and drastic service cuts. 

Yonah Freemark, senior research associate at the Urban Institute, said those cuts would have affected many of the essential workers who continue to use public transit to get to their jobs.

“People who work in grocery stores, people who work in retail [and] people who work at hospitals continue to need public transportation and actually continue to ride it,” he said.

Freemark said it’s the white-collar, higher-income communities that have seen the largest reduction in ridership.

Paul Skoutelas, president of the trade group American Public Transportation Association, said he was relieved they got anything — and is already planning on lobbying for more — but the goal isn’t stopgap packages.

“We’re looking for a major really landmark piece of legislation to be working with the new administration, and with the new Congress come next month,” he said.

Skoutelas hopes that involves a dedicated federal funding stream that doesn’t need to be renewed. Especially because ridership isn’t expected to get back to normal for years.

COVID-19 Economy FAQs

Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?

This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.

Could waiving patents increase the global supply of COVID-19 vaccines?

India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.

Can businesses deny you entry if you don’t have a vaccine passport?

As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.

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