Transit funding

  • Local funding for transit comes from user fees, contracts with human service agencies and local taxes.

  • Iowa devotes an amount equal to 4 percent of the fees for new registration collected on sales of motor vehicles and accessory equipment to support public transportation. Most of these funds are distributed by a formula, based on each system's performance during the previous year in terms of rides, miles and local funding support.

  • The federal government, through the Federal Transit Administration of the U.S. Department of Transportation, offers a number of programs to support local public transportation. Most of these programs are funded through the Mass Transit Account.

  • 2015 Transit operational funding sources: Iowa's urban transit operations were funded 66.97 percent from local sources, 8.73 percent from state funds and 24.30 percent from federal funds; regional transit operations were funded 64.04 percent from local funds, 14.26 percent from the state and 21.70 percent from the federal government.

  • Additional information about Iowa's public transit industry, including statistics from individual systems, can be found at