Surface Transportation

Since regulatory reform of the intercity bus industry a decade ago, nearly 7,000 locations have lost bus service, most of them small towns without any other public transportation. The riders who have been losing service appear to be those least able to afford and least likely to have access to alternative transportation. Many states have provided funds to prevent further deterioration or elimination of intercity bus service. States' efforts to expand intercity bus routes may have been facilitated by the Intermodal Surface Transportation Efficiency Act of 1991, which set aside grant funds for intercity bus needs. The Federal Transit Administration's guidance on implementing the set-aside gives states flexibility in developing their own approaches to meeting intercity bus needs and allows states to use the funds to collect information on the effect of declining service and develop appropriate responses. Continued federal support will help states ensure the availability of intercity bus service where it is needed most.