$16 Billion in Emergency Funding for Travel Agencies

By: Matt Karol / March 26, 2020

As a result of the most recent events regarding COVID-19, the American Public Transportation Association (APTA) is being negatively affected with $2 billion of direct costs as well as $14 billion in expected future revenue losses. This is causing immediate measures to be taken so that these agencies can provide important services both now and in the future. As a result, APTA is requesting that Congress aid the agencies with $16 billion in direct funding.

Below is how the funding would be broken down to combat these damages from the result of COVID-19:

  • $1.75 billion in direct costs, such as the cleaning of vehicles
  • $7.65 billion in lost farebox revenue
  • $6.25 billion in dedicated sales tax revenue which estimates a 75% dedicated loss in sales tax revenue from March - September
  • $350 million in restart costs

The Metropolitan Transportation Authority in NYC alone estimates a $3.7 billion revenue loss as well as $300 million in expenses linked to fighting COVID-19.Union_City_Transit_buses_at_Union_City_station,_October_2017

Why is this important? As it has been previously reported, several smaller and rural transit operators have stopped their fixed route services. This is a small step to an evolving problem. It is vital that public transportation remains functioning at an optimal level because its services people with disabilities, healthcare workers, law enforcement, and first responders among other critical people who rely on the service.

What are the next steps? The bill will move through the senate before it goes to the House of Representatives. There is one House Representative that has gone on record for supporting this bill. Sean Patrick Maloney (D-NY-18) would like to see funds administered through both the Transit and Railroad Administrations. Maloney says it is a way to “bridge the gap” between decreased revenue and increased overhead as a result of COVID-19.






Categories: COVID-19, transit, metropolatin

Matt Karol

Written by

Matt Karol

Always striving to grow and progress in my field and with the company, just like Guttman does as a whole.

Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.


Contact Us