During COVID-19, the public transportation network in the United States was empty, but it has recently regained vitality, though it is now on the verge of suspension due to financial difficulties.
According to Bloomberg News on the 30th (local time), major cities in the United States such as New York, Chicago, and San Francisco are seeing trains packed during rush hours again, with a steady increase in tourist arrivals and a revitalization of public transportation. However, due to reliance on massive federal financial support during the COVID-19 pandemic, transportation agencies across the country are currently facing structural deficits.
The Bay Area Rapid Transit (BART) in western San Francisco used to rely on fare and parking revenue to cover 70% of its total operating costs before COVID-19, but it has now dropped to about 25%. BART plans to continue operations with emergency budgets until spring 2026, but it is expected that a maximum annual deficit of $400 million (approximately 568.64 billion won) will be unavoidable thereafter.
Since the beginning of the COVID-19 pandemic in 2020, Congress has injected about $70 billion (approximately 95 trillion won) to cover the losses of public transportation operators, but since special support ended, the deficit has been expanding uncontrollably. Bloomberg News projects that cumulative deficits over the next few years could reach $6 billion (approximately 8.54 trillion won).
As a result, many operators are increasing fares and reducing routes. The Southeastern Pennsylvania Transportation Authority (SEPTA) in Philadelphia is anticipating a deficit of $213 million in the next fiscal year, leading to a wage freeze for 1,300 employees, along with a 21.5% fare increase and a review of the elimination of 50 bus routes and 5 commuter train lines.
The Massachusetts Bay Transportation Authority (MBTA) in Boston expects a deficit of $500 million over the next four years and has stated that the budget needed for overall infrastructure improvements amounts to $24.5 billion. Transportation agencies in Chicago have also requested $1.5 billion in annual support from the state government, and a fare increase of 10% is under discussion.
Political variables are also a concern. The Metropolitan Transportation Authority (MTA) in New York plans to secure approximately $14 billion of the $55 billion needed for infrastructure improvements from the federal government between 2025 and 2029, but this is currently hampered by the implementation of "congestion pricing."
The policy involves imposing a $9 charge on vehicles entering Manhattan's center starting in June, but the Trump administration is pushing to abolish it. With the Department of Transportation suggesting the possibility of revoking approval and blocking funding, the MTA is unable to establish even its immediate financial plans.
The Washington Metropolitan Area Transit Authority (WMATA), considered a key federal government department, is also in a situation where additional support is difficult. President Trump has emphasized a reduction in the public institutional sector and supports budget cuts, which has led to a reduction in the number of officials within the agency, subsequently decreasing transportation demand.
Given the U.S. public transportation's heavy dependence on fare revenue, if passenger demand does not fully recover, financial difficulties are expected to worsen. However, raising fares and cutting routes may lead to further passenger attrition, raising concerns about a vicious cycle.
Meanwhile, U.S. cities, in preparation for jointly hosting the FIFA World Cup in North America in 2026, are facing setbacks in their plans for transporting large numbers of spectators. Cities like Boston, Philadelphia, and New Jersey urgently need to secure budgets to cope with the surge in transportation demand during the World Cup, but there are reports that transporting tourists may be challenging given the current situation. A SEPTA official noted, "If things continue like this, the necessary transportation personnel and route operations during the tournament will be impossible."