MTI research examines benefits, legal compliance of toll revenues funding transit

    May 6, 2025
    MTI researchers demonstrate that allocating toll revenues to transit is legal and already benefits communities across the U.S.
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    people cross a congested street in Manhattan, NY
    Over time, MTI says federal transportation policy has evolved to give agencies more flexibility in how they use toll revenues.

    The Mineta Transportation Institute (MTI) published a perspective outlining the policy rationale and legal framework for using toll revenues to fund public transit operations in the U.S.  

    Roadway pricing is a widely used strategy to manage congestion and associated impacts like increased travel times and pollution. While pricing or tolling approaches vary, MTI says tolling has proven not only effective at reducing traffic, but also at generating revenue that exceeds the costs of operating the toll facility. This raises a critical question for policymakers and toll operators: How should these revenues be used?  

    MTI’s perspective, Using Toll Revenues for Transit: It Can and Should Be Done, explores: 

    • Why reinvesting toll revenues into transit is an effective strategy for improving transportation system performance on a variety of metrics. 
    • The legal history of tolling in the U.S., demonstrating how federal law has evolved to enable toll revenues to fund transit operations. 
    • Case studies of American agencies that have successfully implemented this approach across a range of toll facility types. 

    “Agencies in Virginia are collaborating to reinvest toll revenues from express lanes in transit, carpooling and other transportation demand management projects,” explained the study’s authors about one case study. “Since 2017, more than $150 million in toll revenues have been invested in 32 projects throughout the region, including $5.1 million to pay operating costs for a new commuter bus route as well as purchase of six buses for the service, benefitting thousands of riders each day.” 

    According to MTI, over time, federal transportation policy has evolved to give agencies more flexibility in how they use toll revenues. Many have used that flexibility to invest in rail and transit systems, active transportation infrastructure and transit-oriented development. MTI says this research brief demonstrates that these types of investments are longstanding, widespread and beneficial, and transportation agencies should consider using toll revenues to fund integrated transportation networks.