The City CAN Afford Free Buses
Critics have argued that free buses sound good in theory but fall apart in practice. We disagree–here’s why:
MYTH: We rely on bus fares to fund public transit.
FACT: Even if every single rider paid for the bus, their fares would still cover less than half the cost of providing each ride.
According to the National Transit Database, the operating expenses for the MTA's buses were $4.89 billion in 2024, and they collected $814 million in fare revenue – meaning fares covered just 16.7% of expenses. Assuming ~50% of bus riders do not pay the fare, it’s true that the MTA is losing hundreds of millions of dollars in fare revenue each year. But even if 100% of riders paid the fare every single time, the fare revenue would still only account for ~30% of bus operating expenses.
MYTH: Enforcing fare collection and cracking down on fare evasion is money well spent.
FACT: Pouring resources into enforcement does not make up lost revenue due to fare evasion (it’s not even close).
Fare enforcement wastes more than it recovers in lost revenue–a lot more. In 2022, the NYPD spent over $151 million in overtime for increased fare enforcement in the subways over just $104,000 in unpaid fares.
MYTH: The city can’t afford to eliminate bus fares.
FACT: Making buses free would cost <1% of the city’s annual budget.
Estimates say that free buses would cost between $650-800 million a year. Sure, this sounds like a lot, but in reality, that’s less than 1% of the city’s annual operating budget. Seems like we could find that extra cash somewhere in the $12 billion “miscellaneous” category or the ominous $10 billion “all other departments” fund.
MYTH: There’s just not enough money to pay for free buses. It doesn’t grow on trees, ya know!
FACT: Through smart, bold policy (remember congestion pricing?), we can generate revenue that is renewable, bondable, and scalable every year.
The success of congestion pricing shows that smart policy can help manage traffic and fund transit. For example, if we were to modestly raise parking meter rates or charge for more of the city’s 3 million mostly free spaces, New York could raise new revenue to make buses free while also speeding up service by reducing double parking.
A funding source like this matches the operational reality. Any new revenue source must be renewable, bondable and scalable. The funding must come in every year reliably, support MTA borrowing the way farebox revenue does and grow as more New Yorkers get on board better buses.
MYTH: Free buses alone will solve transit inaffordability for low-income New Yorkers.
FACT: Fair Fares should dramatically expand its eligibility requirements. Compared to similar programs across the country, New York’s eligibility level falls far short.
If you haven’t read our joint report with the Community Service Society and PCAC, check it out here.
To sum it all up, free buses ARE possible. Luckily, we elected a Mayor with the political will to make it happen, but in 2026, we need to make campaign promises the new reality.