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Transit operators urge state investment to unlock federal funds and preserve services
Summary
Transit providers and advocacy groups told the Finance Division I that state operating support is needed to leverage federal transit funds, stabilize ridership gains and avoid service cuts. Industry representatives sought $6.8 million in state operating support to match federal operating allocations; the Department of Transportation described
Transit providers, an advocacy group and Department of Transportation staff urged the Finance Division I to restore or increase state operating support so regional systems can access federal operating funding and sustain growing ridership.
Rad Nichols, executive director of Coast and chair of the New Hampshire Transit Association, described public transit's economic and social contributions: he cited an economic-impact analysis showing that every $1 invested in public transit generates more than $4 in state economic activity and stressed that state operating match leverages federal funds already allocated to New Hampshire. Nichols said state operating support helped transit systems expand service and grow ridership by more than 380,000 rides in fiscal year 2024.
The New Hampshire Transit Association requested $6.8 million in state operating support for the 2026'27 biennium and asked that matching rules explicitly allow state operating match to be applied to certain Federal Transit Administration operating categories that carry a favorable federal:local ratio. Nichols said a $6.8 million investment would unlock at least an equal amount of federal funding already apportioned to the state.
Speakers from statewide transportation advocacy and DOT staff reinforced the same point: operating match is needed to draw down IIJA-era federal funds, sustain paratransit and fixed-route services and prevent reductions in span and frequency. DOT staff said the department had submitted a more modest $1.7 million request in its prioritized needs budget, noting the department's budgeting methodology matched prior IIJA incremental funding availability. Transit operators said their ask reflects operational reality, including demand for ADA paratransit and workforce-related trips.
Local leaders and business representatives described real-world consequences if services are reduced: they cited workforce access, student travel to community colleges, patients accessing medical care and the role of transit in supporting hospitality and retail economies. Operators warned that reduced service would force municipalities to make difficult funding choices and could create a downward spiral of reduced ridership and revenue.
Department of Transportation staff said they support transit and highlighted coordination efforts (regional mobility managers and a statewide coordinating council for community transportation) but underscored that state match is essential to deploy federal operating allocations.
There was no committee vote on a funding request during the work session; providers and advocates asked the committee to consider transit requests during the biennial budget process.
