Commuter Rail Struggles to Rebuild Ridership Amid High Costs and Funding Uncertainty

Years after the onset of the COVID-19 pandemic, most U.S. commuter rail systems have yet to fully recover their ridership despite returning to near or above pre-pandemic service levels. According to a Government Accountability Office (GAO) report released May 7, while service across many of the nation’s 31 systems has largely resumed, passenger counts remain depressed, leaving agencies to manage higher costs with diminished fare revenue.

The GAO analyzed Department of Transportation data from January 2019 through December 2024 and found that 19 systems operated at or above their pre-pandemic service levels during the latter half of 2024. Five systems, however, were still operating at levels more than 25 percent below pre-pandemic levels, and the remaining seven systems showed reductions ranging from 8.5 to 23.7 percent. Despite this service recovery, ridership trends have not kept pace. Only six systems had rebounded to or near 2019 ridership levels, while the other 25 continued to lag behind.

To address ongoing declines in fare revenue—down 31 percent in 2023 compared to 2019—many agencies leaned more heavily on federal, local, and alternative funding. Relief aid distributed during the pandemic accounted for a large portion of the increased federal support. However, by early 2025, 15 of 22 systems surveyed reported having exhausted their COVID-19 relief funds, raising concerns about financial sustainability in the coming years.

Beyond revenue challenges, operating costs surged by 28 percent in nominal terms across the industry between 2019 and 2023. Inflation was a major driver, along with rising labor and material costs. These increases have strained system budgets and made it more difficult for agencies to plan infrastructure projects critical to long-term resilience and modernization. In response, some agencies have extended service hours, introduced fare discounts, and restructured operations to better align with evolving commuter patterns, such as hybrid work schedules.

Article by multiple RFHC contributors, based upon information from the U.S. Government Accountability Office press release GAO-25-107511

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