The State of Transit in 2025: Why Automation is the Key to Thriving in a Challenging Landscape

As we move into 2025, the current landscape promises both challenges and opportunities shaped by shifting political priorities and tightening budgetary constraints. While programs like the Bipartisan Infrastructure Law (BIL/IIJA) have delivered historic investments - $108 billion to support federal public transportation programs which includes $91 billion in guaranteed funding - the road ahead will demand smarter, leaner, and more transparent operations.

In this evolving environment, one thing is clear: automation powered by innovative software and hardware solutions is no longer optional—it’s essential.

Where We Stand: The Legacy of the Bipartisan Infrastructure Law

Enacted in 2021, the Bipartisan Infrastructure Investment and Jobs Act (BIL/IIJA) marks a historic investment in the United States' infrastructure, particularly in public transit and clean energy. Set to expire on September 30, 2026, there is potential for extension amid upcoming midterm elections.

The Act makes the largest federal investment in public transit ever, alongside the biggest investment in passenger rail since Amtrak's creation. It dedicates significant funds to bridge infrastructure, clean drinking water, and waste water systems, ensuring millions gain access to these essential services. Additionally, it aims to provide reliable high-speed internet to every American.

Addressing the climate crisis is a key component, with the Act, making substantial investments in clean energy transmission and electric vehicle infrastructure. This includes electrifying thousands of school and transit buses and establishing a new Grid Deployment Authority for a resilient, clean electric grid.

In the next two years, the appropriations process will be crucial. Existing federal funding programs like 5307 (urban), 5310 (specialized), and 5311 (rural) are expected to remain stable. However, there are concerns over potential cuts to programs like 5309 (Bus & Bus Facilities) and 5337 (State of Good Repair), which are vital for maintaining and improving transit infrastructure.

The proposed 2025 T-HUD appropriations bill highlights these concerns. The House bill suggests a $1.3 billion cut in transit investment, primarily through a 66% reduction in Capital Investment Grants. The Senate bill, however, proposes a $440 million increase, including full federal support for certain systems.

Key messages for the new administration emphasize fixing current transit issues, enhancing affordability, and implementing common-sense solutions. Working on state-level funding and leveraging federal highway funds can help agencies address driver shortages, inflation impacts, and regulatory challenges, ensuring transit continues to bridge gaps in communities.

A New Era of Accountability

With a new administration entering the White House in 2025, regulatory scrutiny and funding transparency may intensify. Agencies must demonstrate the tangible value of federal dollars while contending with inflation, driver shortages, and an aging population in need of their services. Efficiency and accountability will define success, and Transit Technologies stands ready to help agencies rise to the challenge.

2025 Priorities: Automation as a Solution

Transit agencies must adapt to meet key challenges:

• Challenge: Driver Shortages 

Solution: Automating processes like driver scheduling, dispatching and vehicle allocation reduces administrative burdens and helps agencies focus on attracting and retaining talent. Agencies should take advantage of AI-based autonomous dispatching and scheduling, like those solutions provided by Transit Technologies, that take customers' needs into consideration and efficiently connects them with the best ride. 

Additionally, given the FTA’s recent focus on transit worker safety, providing the safety and security that both passengers and drivers need to feel comfortable is key to staff retention.  On-board cameras that track driver performance and passenger behavior, real-time GPS tracking to share with others and monitor vehicle route, and rider onboard counting is an option for agencies. Transit Technologies’ solution powered by Vestige offers on board cameras that track driver performance and passenger behavior, real-time GPS tracking to share with others and monitor vehicle route, rider onboard counting, and a lot more.

• Challenge: Rising Costs

Solution: Inflation has driven up the price of buses and smaller vehicles. Tracking an agency’s specialized rider equipment and staying compliant with all pre/post-inspection checklists/forms ensures proper maintenance is performed on all sections of the vehicle. Transit Technologies’ solution powered by FASTER Asset offers immediate alerts when equipment is faulty or non-operational as well as digital tracking all inspections and maintenance. Our solutions help stretch budgets by optimizing asset management and prioritizing preventive maintenance.

• Challenge: Policy and Compliance

Solution: Navigating regulations like Buy America requirements and funding matches becomes easier with data-driven tools that ensure transparency and accountability. Leveraging real-time analytics to meet compliance standards and improve decision-making. With hundreds of telematics sensor data points, GPS trackers, camera and mobile app feeds, you gain total insight into rider behaviors, driver operations, and technician productivity.

Integrating Smart Technology with Transit Technologies

The integration of smart technologies, such as AI-driven analytics and IoT for real-time monitoring, can dramatically enhance compliance and efficiency. For instance, Transit Technologies’ software can automate data reporting and ensure accuracy, freeing up resources and reducing human error. 

Successful adaptation involves more than just technology installation; personnel must be trained to maximize the benefits of new tools. Our comprehensive training modules are designed to bring your team up to speed with the latest technological advances, ensuring seamless integration and utilization.

Continuous Monitoring and Feedback

Implementing technology is a starting point. Continuous monitoring and feedback mechanisms are critical to adapt and refine operational processes. Our systems include dashboards that provide ongoing insights into performance metrics, helping you stay aligned with regulatory requirements.

Automation simplifies complex operations, eliminates redundancies, and creates a foundation for smarter growth—all while delivering better service to riders.

The Path Forward

Transit’s future lies in adopting common-sense solutions to today’s challenges. Automation, powered by Transit Technologies’ solutions, is the key to unlocking that future. Whether it’s improving operational efficiency, reducing costs, or delivering exceptional rider experiences, our solutions ensure agencies are ready to thrive in a competitive and accountable environment.

Learn how Transit Technologies can help your agency navigate the future with confidence. Contact us today to get started.