Transit is funded through a three-tier system, and the federal government is the smallest piece

The Federal Transit Administration distributes roughly $20B annually to support local transportation

Created by the Urban Mass Transportation Act in 1964, the FTA funds and oversees the roughly 2,200 transit systems that receive federal support across the US, covering everything from subway capital investment to rural bus service.

The federal government pumped $70 billion into transit amidst reduced ridership during the COVID pandemic

When ridership collapsed by 75% in the spring of 2020, Congress sent transit agencies nearly $70B to help them survive. But that money has largely run out, and ridership remains 14-28% below prepandemic levels, leaving many transit systems with large budget deficits.

The New York MTA is North America's largest transit system

The MTA's FY2026 budget is $21.3B, and the system carried 1.6 billion riders on buses and subways in 2024, making it by far the largest transit network in the country.

The federal government sent roughly $1.1T to state and local governments in 2024

Federal grants support a large portion of state and local budgets, funding Medicaid, infrastructure, education, and housing. In FY 2024, these transfers made up about 16% of total federal spending.

See how local, state, and federal governments divide the cost of public services

Federal, state, and local governments share responsibility for funding public services. Education, roads, and social programs are funded through a complicated mix of taxes and intergovernmental transfers.

The 2021 infrastructure law increased transit spending 42%, but may not have produced more transit

The infrastructure bill committed $108B to transit, the largest investment in history. However, three years in, real inflation-adjusted investment has declined. An 84% increase in non-highway spending coincided with a potential 29% decrease in actual structures, most likely due to construction inflation and bureaucratic delays.

45% of Americans have no access to public transit

Most US transit was built on a monocentric design, funneling riders into a downtown center. But today's most common commute is from suburb to suburb, meaning the system is built for a work pattern that no longer exists.

One in seven US tax dollars is collected by local governments

Local governments collect about $886B each year to support education, infrastructure, and public health. Roughly three-quarters of this funding comes from property taxes, with the rest sourced from sales, excise, and income taxes.

State and local governments fund very different services

Local governments allocate 39% of their spending to K-12 education, while states allocate less than 1% directly—although much of local education funding actually comes from state and federal grants to local communities. States instead allocate their budgets to public welfare and health programs (45%) and higher education (15%).

See which states contribute the most and least to the federal government.

In 2020, government entities spent $316.5B on infrastructure, with state and local governments accounting for 34.8% of that amount.

Read a complete history of urban mass transit in the United States

Explore the rise and fall of American mass transit, from the horse-drawn omnibus era through the streetcar age to the automobile's dominance. In the 1920s, streetcars carried 12 to 13 billion riders per year. By 1963, that number had shrunken to 300,000.

Hear about the debate over free public transportation

Free public transit boosts economic opportunity and social mobility and is better for the environment. So why do we charge for it? Opponents of free transit cite revenue losses threatening service quality and data showing that free fares don't translate into reduced car use.

Use this calculator to find out the programs and services your federal income taxes fund.

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Police spending is one of the largest budget items for local governments

Local governments finance most of the costs for police in the US. Total state and local criminal justice spending—covering police, courts, and corrections—reaches hundreds of billions of dollars annually.

Public transit has been a front line of civil rights battles for over a century

Public transit was among the most contested terrain in the fight for racial equality in America, because it was where Black Americans and white Americans were unavoidably forced to share public space.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

The federal government has spent more money annually than it has collected every year since 2022.

Roughly 22% of US tax dollars go to Social Security

Social security is the US government’s largest expense. You can see other government expenses in a visual breakdown of what one US tax dollar actually pays for. Total spending amounts were converted to cents on the dollar and percentages.

Federal spending falls into 2 categories: mandatory and discretionary

Federal spending is split between mandatory programs, funded automatically by law, and discretionary programs, funded through annual appropriations. This video breaks down which major programs fall into each category and why the distinction matters.

Mass transit in America began with horse-drawn omnibuses in New York City in 1827

The omnibus, a large horse-drawn stagecoach that ran a fixed route and carried a dozen riders at an affordable fare, was different from a private carriage because it carried everyone, not just the wealthy.

Federal government supports—but doesn't run—K-12 schools

The Department of Education contributes about 8% of K-12 funding and administers targeted grants, civil‑rights enforcement, research, and data collection. Crucially, it is legally prohibited from directing curriculum, personnel decisions, or instructional content, leaving that control to states and districts.

Nearly half of the discretionary funding in the US is allocated to national defense.

As of 2022, about 40% of scientific research aimed at generating new knowledge has been funded by the federal government—a percentage that has decreased from a high of 72% in 1967.

LA used to have one of the best mass transit systems in the country

A century ago, Los Angeles had one of the greatest urban transit networks in America. Today, driving in LA traffic can still be faster than taking the train. The city's rail design, which funnels traffic through a single point, fails to support a city with such a spread-out population.

Local governments are responsible for more than 148,000 public water systems across the US

From large municipal utilities to small rural systems, local governments are tasked with providing clean water to almost every American community. The US operates over 148,000 public water systems.

Public libraries are funded by a mix of local taxes, state grants, and federal programs.

Government shutdowns, 101

Roughly a quarter of the US federal government's spending must be approved annually through a set of 12 appropriations bills in Congress. When they aren't, a government shutdown ensues, where federal agencies are legally barred from spending any further money on nonessentials. This explainer covers the basics of government shutdowns and their impact on the broader culture.

Visualizing New York City's public transportation commutes

New York City is one of the largest cities in the world, and transports one of the largest numbers of commuters on a daily basis. This data visualization tells the stories of those commuters, showing the varying volume of travelers throughout the week and day, where they are going, and maps of high-traffic areas like stadiums and midtown. Dive into the data here.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt.

Charting where federal revenue comes from

About 50 percent of federal revenue comes from individual income taxes, 7 percent from corporate income taxes, and another 36 percent from payroll taxes that fund social insurance programs. See breakdown in charts here.

American local government comes in five distinct forms

Counties, municipalities, townships, special districts, and school districts are each created for a different purpose, operating under different rules, and answerable to the state in different ways. Special districts, the least known of the group, are created for specific purposes, such as transit or fire protection.

Many local governments also struggle to rein in their spending.

See a chart showing how much the US federal government pays in interest on its debt.

Federal systems are a minority among the United Nations' 193 members

Of the United Nations' 193 member countries, roughly two dozen use a federal system, dividing power constitutionally between national and subnational governments. This group includes the United States, India, Canada, Germany, and more. The video walks through examples of how these states operate.

The federal government distributes more than $160M in grants directly to libraries each year

The Institute of Museum and Library Services distributes funds annually to State Library Administrative Agencies, which support statewide initiatives and channel funds to public and academic libraries.

Map of each state's largest tax revenue source

While America’s federal government primarily raises revenue through personal and corporate income taxes, it's a different story for each of the 50 states. This map shows how every state raises tax revenue for government activities. New York and California, for instance, raise most of that money through personal income taxes, whereas Texas and Florida have sales tax as their largest sources of tax revenue. Click here to see the map.

Nearly 70% of the US government’s debt is domestic

This includes intragovernmental holdings like the Social Security Trust Fund and investments from US citizens, banks, and mutual funds. About 30% is foreign-held, with countries like Japan and China as major creditors, investing in US Treasury securities due to their perceived safety.

About one dollar in every six that are owed to the federal government aren't paid each year

That adds up to close to $1T in what's known as the "tax gap." Read a breakdown on the main drivers of tax evasion (distinct from legal tax avoidance) in the US.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

The federal deficit is the gap between what the US spends and what it collects.

Self-driving cars may upend transit before cities can build it

Austin approved a $7.1B light-rail in 2020, but components of the plan have already been cut. Simultaneously, Waymo launched a 200-car autonomous fleet across the city. Cities now face a choice: invest in decadeslong fixed infrastructure projects or embrace flexible, on-demand autonomous vehicles that can navigate anywhere.

An analysis of the National Science Foundation's historical budget and spending

The NSF accounted for 0.1% of all federal spending in FY2024, with $9.39B—just over twice its FY1991 spending—out of $6.78T overall. Almost 99% of these funds ($9.29B) went to general science and basic research, with the rest allocated to national defense.

Local governments coordinate across jurisdictions through regional councils and planning bodies

Many local governments are part of Councils of Governments or Metropolitan Planning Organizations—regional entities that coordinate transportation, land use, and other shared priorities across city and county boundaries. Federal law mandates their establishment in any metro area with a population over 50,000.

See a chart that shows how the average American spends their annual earnings, with almost half of all American consumer spending going toward transportation and housing.

The entire National Park System is located on public lands, but not all public lands are national parks.

New York City spends $429 million a year just to get rid of its trash

None of NYC's garbage is processed within the city. It is transported by truck, train, and barge to waste-to-energy facilities and landfills as far away as Ohio and South Carolina, a vast logistical operation.

NYC congestion pricing a year in: traffic is down, transit is up

Manhattan's congestion pricing program has quietly become a success story. WNYC reporter Stephen Nessen examines why the original backlash to the concept has faded, how New Yorkers adjusted, and what the city's experience shares with similar policies in Stockholm and London.

The 1956 Federal-Aid Highway Act spent $25B to build 41,000 miles of freeway

Sold to Congress as a national defense measure, the Interstate Highway Act committed the federal government to covering 90 cents of every dollar spent on a 41,000-mile freeway network, a subsidy that reshaped American cities and supercharged car dependency.

The US federal government employs roughly 3 million people

Tracking began in 1939, when the federal workforce consisted of about 1 million people. The total peaked in 1990 at 3.4 million, and hit a recent low in 2014 at 2.7 million.