Federal Transit Administration FTA

As private streetcar and bus companies collapsed after World War II, the Urban Mass Transportation Act of July 9, 1964, began federal aid to public transit and created what became the Urban Mass Transportation Administration. It was renamed the Federal Transit Administration in 1991. It is led by an Administrator confirmed by the Senate. Unlike highways, transit systems are owned and run by local and regional agencies, with FTA as a funder and safety overseer.

Most FTA money goes to transit agencies by formula for buses, rail cars, maintenance, and in smaller areas operating costs, funded largely from the Mass Transit Account of the Highway Trust Fund. Its Capital Investment Grants program, known as New Starts, funds major new rail and bus rapid transit lines through a competitive pipeline that can take a decade or more. After a 2009 Washington Metro collision that killed nine people, Congress gave FTA authority to set safety standards and oversee state safety agencies.

Transit ridership fell by more than half early in the COVID-19 pandemic and recovered to roughly 85 percent of prior levels, leaving many agencies facing budget gaps as federal relief ran out. In 2025 the administration withheld or reviewed funding for several major transit projects, including in New York, and pressed agencies on crime and fare enforcement. Supporters said federal money should come with accountability for safety and costs, while transit agencies and local officials argued that the holds were political and jeopardized long-planned projects.