Every year, Mass Transit magazine asks its readers to share their insights to help the transit industry prepare for the year ahead. Readers respond to a series of questions that focus on everything from capital and operating budgets to procurements, state of good repair backlogs and the rider experience.
This year, transit agencies are reporting expanded services and increased budgets compared to 2025 levels, with one respondent citing a “population boom” resulting in higher transit demand. This time last year, inflation concerns were on everybody’s radar. However, 2026 will present a new set of anticipated challenges. While recruitment and retention continue to be a top concern, this year, over 60% of agencies noted communicating transit’s value to local and/or state officials will be a challenge—30% said this is the most pressing challenge. One agency shared the difficulty of garnering political support for transit in an area divided between urban and rural settings.
Agencies also see several opportunities on the horizon. As they expand and adjust their service to meet new travel demands, agencies are leveraging passenger amenities to entice riders onto transit. Supporting this notion, over 60% of agencies say the biggest opportunity will come from investing in new technologies to improve the rider experience—a 33% increase compared to last year.
Looking to the private sector, the majority of businesses are anticipating higher or significantly higher revenues compared to 2025. For companies that increased their budgets, about 49%, the majority are adding head count and making capital investments. Despite predicting increased revenues, this may be overshadowed by the private sector’s recession concerns. Over 34% cited this as their top challenge compared to 8% last year. When it comes to opportunities for this year, expect businesses to focus on improving their processes and establishing new collaborations.
How was this information gathered?
Mass Transit queried subscribers who identify as working for a transit agency or for a business supporting transit agencies (suppliers, manufacturers, consultants, engineers, etc.) from Nov. 1, 2025, to Jan. 5, 2026. The survey received nearly 200 responses from transit agency representatives and private sector professionals, with each group responding to their own set of questions.
Though we would like to receive responses from all transit operators in North America, we know this is not practical. However, we believe data from this survey is sufficient and provides compelling insights into what the transit industry can expect for 2026.
Make sure to check out our mini outlook series covering cybersecurity, the rider experience and the state of the zero-emissions transition on MassTransitmag.com.
About the Author
Megan Perrero
Editor in Chief
Megan Perrero is a national award-winning B2B journalist and lover of all things transit. Currently, she is the Editor in Chief of Mass Transit magazine, where she develops and leads a multi-channel editorial strategy while reporting on the North American public transit industry.
Prior to her position with Mass Transit, Perrero was the senior communications and external relations specialist for the Shared-Use Mobility Center, where she was responsible for helping develop internal/external communications, plan the National Shared Mobility Summit and manage brand strategy and marketing campaigns.
Perrero serves as the board vice president for LIT and is a member of the American Public Transportation Association Marketing and Communications Committee. She holds a bachelor’s degree in multimedia journalism with a concentration in magazine writing and a minor in public relations from Columbia College Chicago.