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SD 3930

Regional Transit Authority Fare Free Pilot Program FY25 Report

194th Legislature (2025-2026)

Fare-free pilot increased ridership across MA RTAs, especially where service was continuous, while fare revenue and FRR declined, guiding ongoing funding decisions.

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Bill Summary · SD 3930

Bill overview

  • Bill: SD 3930
  • Session: 194th
  • Jurisdiction: Massachusetts
  • Title: Regional Transit Authority Fare Free Pilot Program FY25 Report
  • Status: On file as of 2026-05-28

Main purpose and intent

  • To provide a comprehensive final report on the FY25 Fare Free Pilot Program for Massachusetts Regional Transit Authorities (RTAs), pursuant to Section 1596-2406 of the FY2025 Massachusetts Budget Act (Chapter 140 of the Acts of 2024).
  • The report documents grant criteria, awards, data collection and analysis, ridership impacts, fare revenue effects, and operational observations from RTAs that operated fare-free fixed-route and related services in FY25.
  • The overarching goal of the program is to remove economic barriers for low-income riders, increase ridership, and attract new low-income customers, while distributing funding geographically and transparently.

Key provisions and changes described

  • Funding and program scope

    • FY25 provided $30 million in operating funds to RTAs for fare-free pilot programs.
    • The funding level continues a ramp from previous years: $2.5M (FY23), $15M (FY24), and $30M (FY25).
    • In FY26, an additional $35 million was provided by the legislature for continuing fare-free service statewide (all fifteen RTAs required to offer fare-free fixed-route and ADA paratransit).

  • Grant criteria and awards (FY25)

    • Evaluation criteria (100-point scale, with up to 5 bonus points):
    • Ability to implement year-round, systemwide fare-free service and track ridership (40 points)
    • Potential to increase ridership and accessibility for low-income individuals (30 points)
    • Complete project scope with funding rationale and implementation schedule (30 points)
    • Bonus for joint applications with other RTAs (up to 5 bonus points)
    • A joint application from thirteen RTAs requesting the full $30 million was awarded. Two RTAs (CCRTA and GATRA) did not participate in FY25 Fare Free Pilot Program (though GATRA used FY24 funds for part of FY25).

  • Data collection and analysis

    • RTAs supplied monthly ridership and fare data, plus one-time progress reports and qualitative feedback.
    • Ridership data gathered via fareboxes, APCs, manual counts, and other technologies; fare data included both fixed-route and demand-response (including ADA paratransit) components.
    • The analysis uses FY19 as a baseline (pre-pandemic and pre-wide fare-free service) and categorizes RTAs into three cohorts based on when continuous fare-free service began:
    • Pre-FY23 Cohort (long-standing fare-free service)
    • FY24 Cohort (launch of continuous fare-free service in FY24)
    • FY25 Cohort (launch of continuous fare-free service in FY25)

  • Ridership and service impact

    • Across 14 of 15 participating RTAs (two non-participating RTAs included in statewide trends), FY25 ridership increased vs. FY24; several RTAs surpassed FY19 pre-pandemic ridership.
    • Continuous fare-free service for 1+ year correlates with stronger ridership growth; early high-growth periods were common in cohorts newer to continuous fare-free operation.
    • Total fixed-route ridership statewide exceeded FY19 levels for the first time in FY25.
    • December 2024 to December 2025 ridership rose by more than 15% statewide, with notable monthly peaks in May–August depending on cohort.

  • Fare revenue and farebox recovery

    • Fixed-route fare revenue across all RTAs declined substantially in FY25 due to widespread fare-free operation (about a 60% drop from FY24 to FY25).
    • Farebox Recovery Ratio (FRR) for fixed-route service dropped to about 2.6% in FY25 (6.1% in FY24).
    • Demand-response (paratransit and related services) FRR also declined overall due to higher operating costs and continued—but varying—fare policies across RTAs.
    • Some RTAs continued collecting fares for certain demand-response services (e.g., ADA paratransit required by law, premium services).

  • Demand-response services

    • Varied across RTAs: some operated completely fare-free, others partially fare-free or with specific programs (COA services, HST, microtransit).
    • Demand-response ridership generally rose in FY25 (average ~11.9%), with NRTA showing a particularly large increase in demand-response ridership when fare-free operation began.
    • Revenue for demand-response services increased modestly overall, driven by some RTAs’ third-party reimbursements and remaining paid services.

  • Customer and operator feedback

    • Broadly positive: ridership growth, reduced fare handling, shorter dwell times, and improved accessibility cited.
    • Operational challenges included crowding on some routes, stop frequency increases, and capacity issues on peak routes; some RTAs noted need for larger vehicles or schedule adjustments.
    • Many RTAs expressed willingness to continue fare-free service if ongoing funding remains available.

Who/what would be affected

  • Regional Transit Authorities (RTAs) across Massachusetts and their riders, including fixed-route, ADA complementary paratransit, and certain demand-response services.
  • Low-income riders and other riders who benefit from reduced trip costs.
  • RTAs’ operational practices, fare collection workflows, and data collection/reporting processes.
  • State budget allocations and contract assistance levels (SCA) funding used to support fare-free operations.

Procedural and timeline aspects

  • Legislative basis: Section 1596-2406 of the FY2025 Massachusetts Budget Act required MassDOT RTD to oversee a $30 million fare-free pilot, with annual reporting on criteria, applicants, ridership, and data-tracking mechanisms.
  • Reporting timeline: This document is a final FY25 report submitted March 2026, addressing requirements 1–4 and providing detailed ridership and fare data, as well as data-tracking mechanisms (requirements 5–6).
  • Program timing: FY25 fare-free operations generally began around January 2025, with some agencies starting earlier or later within FY25; FY24 carryover funds were also used by several RTAs.
  • Future funding: The FY26 funding package and the additional $35 million allow continuation of fare-free service for all RTAs, with continued data collection and analysis to refine understanding of ridership and cost dynamics.

Bottom line

  • The FY25 Fare Free Pilot Program increased ridership across most participating RTAs, with stronger results for systems that implemented continuous fare-free service for longer periods.
  • Fare revenue and FRR declined significantly as expected with widespread fare-free operations, while demand-response outcomes varied by RTA due to bespoke program designs.
  • Feedback from riders and operators was predominantly positive, supporting the case for continuing fare-free policies contingent on ongoing funding. The report sets a data-informed basis for evaluating further expansion or adjustments in future years.

Compiled from official sources — confirm details with the bill’s official record.

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