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Federal subsidies to urban mass transit systems have failed to reduce traffic congestion, reduce air pollution, or save energy, according to this study. The study also exposes a number of popular myths about the benefits of federally subsidized mass transit. It challenges the need for a proposed 20 percent increase in spending for bus and rail systems contained in a transportation bill before both houses of Congress. The study recommends abolishing federal subsidies for urban mass transit; eliminating barriers to private unsubsidized service such as minivans; and adopting competitive contracting for subsidized transit, which can cut costs up to 50 percent.
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