Federal Transit Oversight: A Shift from Compliance to Performance
Transit riders rely on consistent, safe, and efficient public transportation. However, current federal oversight often prioritizes procedural compliance over actual service quality. This focus on paperwork and rule enforcement can hinder improvements in reliability and passenger experience, raising questions about the effectiveness of billions of dollars in federal funding.
The Compliance Trap
Agencies often dedicate resources to fulfilling grant reporting requirements and creating corrective action plans, potentially diverting attention from enhancing service for riders. While compliance is essential, it shouldn’t overshadow operational improvements. Federal regulators typically intervene when transit agencies misuse funds, violate civil rights standards, or neglect safety protocols, often requiring corrective plans and sustained oversight until issues are resolved.
However, service performance—such as on-time arrival rates and reduced wait times—receives less direct attention. Agencies monitor these metrics but rarely face consequences, like adjustments to funding or service levels, for failing to improve them. The influx of supplemental transit funding during the COVID-19 pandemic, totaling roughly $69.5 billion through the CARES Act, CRRSAA, and the American Rescue Plan Act, exemplifies this issue. Compliance with federal spending rules was prioritized—through systems like the FTA’s Transit Award Management System (TrAMS)—but operational performance wasn’t a requirement for continued funding.
Safety Oversight and Persistent Issues
Similar patterns exist in federal safety interventions. The Washington Metropolitan Area Transit Authority (WMATA) experienced federal oversight from 2015 to 2019 after safety concerns prompted the Federal Transit Administration (FTA) to take temporary control. The FTA issued directives requiring safety management systems, corrective action plans, and hazard mitigation procedures. However, safety issues persisted. In 2021, the agency was forced to suspend the apply of 7000-series railcars due to wheel assembly problems, leading to service disruptions and overcrowding.
The Massachusetts Bay Transportation Authority (MBTA) faced similar scrutiny. An FTA Safety Management Inspection identified safety governance issues, resulting in special directives for improvement. Despite completing corrective actions, safety incidents continued, including a train fire on the Orange Line in July 2022, where passengers were forced to evacuate.
A Call for Performance-Based Oversight
The core problem is that federal agencies often focus on compliance with procedures rather than ensuring stable, reliable operations. A shift towards performance-based oversight is needed, where state and local agencies maintain governance and funding responsibility, while federal oversight ensures effective service delivery.
The federal government should prioritize these four areas:
- Define operational approval standards: Agencies should demonstrate consistent progress in key areas like trip completion rates, passenger wait times, and crowding levels over multiple reporting periods before receiving full approval.
- Implement earned flexibility: Oversight requirements should decrease as agencies demonstrate stable operations, incentivizing performance improvements.
- Require operational correction when performance stalls: Agencies should be required to implement concrete operational changes—such as schedule adjustments or maintenance reforms—rather than simply submitting documentation.
- Preserve existing safeguards: Safety management, civil rights protections, and financial oversight must remain intact.
As long as the federal government provides transit funding, it has a responsibility to ensure those funds are used effectively. However, federal oversight must prioritize fixing transit systems’ core problems—reliability and safety—rather than simply checking boxes.
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