November 20, 2025
Free transit in one American city has resulted in a big jump in ridership, 24,000 fewer metric tons every year of carbon dioxide in the atmosphere, increased business for downtown merchants and 1.8 million fewer miles of car traffic on its streets.
The two-year free-transit experiment in Iowa City (population 75,000) has been such a success that it’s been extended for another year, according to an article in the New York Times (paywall may apply).
The program was financed by a one-percent increase in utility bills and a doubling of parking rates. At first, downtown businesses complained but a lower increase of 50% was negotiated, and businesses now support free transit because it brings more people downtown, according to the article.
Ridership jumped to 118% of pre-Covid levels immediately following the start of the program, compared to the national average of 85%.
The article also points out that service has become faster, since drivers no longer have to ask passengers for transfers or fares. And fears of bad behaviour and homeless people using buses as shelters have not come to pass.
The city promoted the program with a launch party, artist-decorated bus shelters, jazz bands and a display where riders could write thank-you cards to bus drivers.