The Trump administration’s proposed crackdown on “fare-free” bus programs has set the stage for a major showdown between the federal government and New York City’s newly inaugurated mayor, Zohran Mamdani. On Tuesday, February 3, 2026, a Department of Transportation (DOT) draft proposal surfaced, threatening to withhold federal funding from large cities that refuse to charge bus fares—a move that could derail Mamdani’s signature campaign promise.
The DOT Proposal: “No Pay, No Play”
The draft proposal, intended for the upcoming surface transportation bill, targets transit agencies in areas with over 200,000 residents and more than 100 buses.
- The Mandate: Agencies receiving Federal Transit Administration (FTA) funds would be required to collect fares.
- The Rationale: The administration argues that fare collection ensures systems are “adequately funded by users” and addresses public safety by reducing “disruptive passengers.”
- The Exceptions: Fares could still be waived for seniors, students, veterans, and people with disabilities, as well as for major international events like the 2026 World Cup.
Mamdani vs. The MTA: “Bumper Sticker” Politics
In New York City, the proposal has intensified the friction between Mayor Mamdani and the state-controlled Metropolitan Transportation Authority (MTA).
- The Campaign Pledge: Mamdani, who took office in January, campaigned on making every city bus “permanently free,” arguing it is essential for working-class affordability.
- The MTA’s Pushback: During a budget hearing in Albany on February 3, MTA CEO Janno Lieber dismissed the mayor’s plan as a “campaign bumper sticker.” Lieber emphasized that the MTA is currently focused on “European-style” fare enforcement—deploying civilian agents to verify OMNY payments—rather than eliminating fares.
- The Financial Gap: Experts estimate Mamdani’s plan would cost approximately $1 billion annually, a sum the MTA says it does not have, especially if federal grants are at risk.
Impact Beyond New York
The policy would have a “ripple effect” on several other U.S. cities that have experimented with or implemented fare-free transit:
| City | Current Status | Potential Impact |
| Kansas City, MO | Fare-free since 2019. | Moving toward reinstating fares due to fiscal pressure. |
| Richmond, VA | Fare-free through 2026. | Likely forced to reinstate fares to keep federal grants. |
| Albuquerque, NM | Permanent fare-free policy. | At high risk of losing millions in FTA funding. |
| Philadelphia, PA | Tiered free-fare programs. | May need to adjust eligibility to meet federal “user-funded” criteria. |
The 2026 World Cup Loophole
The DOT draft curiously includes a carve-out for “major events,” which would allow cities to offer free transit during the FIFA 2026 World Cup. This exception is particularly relevant for host regions like New York/New Jersey, Kansas City, and Philadelphia, though transit advocates argue that if the system can handle free rides for international tourists, it should be able to do so for local residents.
