University of Illinois Chicago unveils new study highlighting economic value of rural transit

The University of Illinois Chicago has unveiled a new study from the Urban Transportation Center at the College of Urban Planning and Public Affairs that examines what investments in rural public transportation produce—services the study notes are often underfunded, on-demand options.

Led by Urban Transportation Center Director P.S. Sriraj, the research aimed to quantify the societal benefits of transit systems in rural areas and in communities with populations under 50,000, examining how they support broader social determinants of health, such as access to medical care and recreation.

“Rural transit is funded through a complex mix of federal pass-through programs and state matching funds. The state invests real dollars into these systems, yet there’s very little understanding of what returns they get back,” Sriraj said. “Our study tries to fill that gap by calculating returns on the state’s investment, framed through the lens of social determinants of health.”

The researchers note that the findings suggest that every dollar the state puts into rural transit returns nearly $4 in value through improved health outcomes, increased workforce participation and a reduced strain on social services among other economic benefits.

“In reality, the $4 return does not translate into revenue flowing back to the state,” Sriraj said. “Instead, that $4 reflects the overall impact on society because of that dollar investment.” 

Sriraj explains what motivated the study and what the findings mean for Illinois riders, providers and policymakers.

“For urban residents, rural transit is an essential service that looks very different from city transit,” Sriraj said. “For someone in rural areas, they can see how they can better utilize these systems to take care of their many needs. For transit agencies, the study gives them a framework, as well as some hard numbers to demonstrate and communicate their value. If an agency can show that every dollar invested yields significant returns, it strengthens their case when articulating their needs to decision makers.”