How will the recent election change the future of transportation? I recently returned from the CoMotion conference where the election was a frequent topic of conversation. Political shifts and volatile news cycles can create reactions to campaign comments and headlines and cause us to opine on the potential impacts across a number of programs and unknowns. However, it's important to maintain objectivity on the transportation industry's extraordinary period of innovation and momentum that has lasted through several administrations. Recently, I’ve delved deeper into the topic and there are compelling reasons for optimism in our sector.
Public transit initiatives fared well in this election, with an overwhelming 87% approval rate for transit-related ballot measures, generating over $25 billion in new funding.1 This strong voter support reinforces the notion that transportation, as a critical connector and economic catalyst, is not and should not be a polarizing issue.
Transportation is an inherently diverse industry, encompassing trains, highways, buses, air travel, public transit, and passenger vehicles. Its funding comes from a wide range of programs, including state and local budgets, federal initiatives, private companies, special districts and riders. Its benefits are equally diverse, which include economic development, reducing congestion, improving public health, and creating jobs. According to the American Public Transportation Association (APTA), every dollar invested in public transportation generates $5 in economic returns—a valid argument for continued investment.2 These multifaceted advantages highlight why transportation investment remains one of the best decisions cities and states can make. I’ve previously written about these wide-ranging benefits, and the industry’s progress further underscores this point.
“The public’s enthusiasm for investing in transit reflects a clear desire for cleaner, more accessible transportation options in their neighborhoods."
This year’s election results highlighted a strong public mandate for investment in transportation. Measures passed across Blue, Red, and Swing states reflect a broad, nonpartisan agreement on the value of public transit and mobility improvements. Paul P. Skoutelas, CEO of APTA, remarked, “The public’s enthusiasm for investing in transit reflects a clear desire for cleaner, more accessible transportation options in their neighborhoods. The 2024 election has marked a significant step forward for public transportation, as communities continue to invest in a brighter, more sustainable future for everyone.” There have been a total of 46 wins out of 53 measures for public transit in 2024. Some of the positives include various measures to use sales taxes and even property taxes (including a large program in Seattle) to fund transit, parking reduction programs, to open streets and bus lanes, and microtransit and micromobility improvement measures. Approving the use of “penny” and “half-cent” sales tax programs to fund transportation projects has been happening for decades and has continued to gain momentum, with multiple measures passed this year, as local governments and states seek to invest more in localized services and projects.
There are a lot of encouraging trends that shouldn’t be forgotten. We’ve seen more innovation and progress in the last two decades than in perhaps the previous 80 years, driven by advancements in on-demand technologies, shared mobility, electrification and data-driven solutions. With more transit-related ballot measures approved, one could argue now is an excellent time for the transportation industry.
At Circuit, our mission is to solve mobility challenges with tech-enabled, electric shuttle services designed for short trips. Our services enhance mobility, stimulate economic activity, and provide affordable transportation options. We also support private clients with transportation solutions tailored for hotels, residences, universities, and more.
As cities and businesses strive to reduce congestion and improve mobility, demand for our solutions continues to grow. Circuit combines on-demand technology and affordability with the quality control and expertise that transportation providers need. We provide valuable turn-key, microtransit services that include local W-2 employee drivers, EV fleets, on-demand technologies and tailored solutions for our community partners. Our use cases include downtown shuttles that boost local economies, first/last-mile transit partnerships, low-cost community transportation, and private services customized for specific properties and institutions. Revenues come from cities, states, agencies, private properties, advertisers and riders.
Our public customers’ funding is sourced from a broad range of programs from special districts and cities to state programs and transit agencies. Less than 6% of our service funding comes from federal programs, with services partially supported by long-established programs like CMAQ, which was established to address congestion and air quality in 1991.
From our very first city service in San Diego, where a Republican mayor officiated the ribbon-cutting, to a more recent program in New York sponsored by a Democratic Governor, our innovative and cost-effective transportation solutions have demonstrated bipartisan appeal.
Since the election, I’ve been fielding questions from friends, customers, investors and our team about its potential impact on our business; both positive and negative. After diving into the data and tracking ongoing developments, I’ve grown more encouraged. Our revenue model is resilient and our services consistently enhance mobility, economic activity, and access in communities, while reducing both emissions and costs. Our industry leading cost-per-rider, a focus long before the election, gives us a significant advantage. Cost-per-rider for our systems is far less than other on-demand microtransit systems around the country and even lower than many fixed route and traditional services. The industry should also be encouraged by how technology solutions are leading to efficiency, utilization and EV adoption.
Further, “President-Elect Trump likely will be cautious on policies that could eliminate commercial motor vehicle jobs based on his support from labor unions,” according to a report by Holland & Knight.3 Circuit’s benefitted from the growing number of EVs being produced in the US and we expect there will be a big focus on Made in the USA related initiatives. Trump’s connection with Elon Musk and interest in American manufacturing could amplify support for the US EV sector.3 Even if these are positioned as business related initiatives instead of climate related policies, we’ll still stand to see the benefits.
Pro-business policies may also stimulate development, especially in real estate and housing—a fast-growing category for mobility solutions. The housing shortage cannot be addressed without transportation. A favorable economic environment with lower interest rates may further support private expansion and create a stronger funding climate. Transportation is a key component to addressing housing, and transit-oriented developments have been on the rise for years.
Political transitions often bring uncertainty but also opportunities for growth. The transportation sector’s recent history demonstrates its resilience and adaptability. Cities and states are leading the charge in transportation innovation, from electrifying fleets to creating safer, more accessible streets. Transportation investments yield significant returns, not only in economic growth but also in reduced congestion and emissions. The appetite for efficient mobility solutions ensures that the transportation industry remains a cornerstone of urban planning and economic development.
Transportation is about connecting people and opportunities, a universal need that transcends party lines. The momentum we’ve built over decades of innovation, community investment, and bipartisan support is too strong to be derailed by short-term political shifts. While we can’t predict every outcome, the progress and resilience of this industry give us plenty to be optimistic about.
At Circuit, we remain committed to providing innovative, cost-effective, and sustainable solutions that address real mobility challenges. The transportation industry is poised for a transformative decade. Let's not get distracted by the noise of volatile news cycles. By focusing on long-term goals, fostering collaboration and embracing innovation, we can build a more efficient, sustainable and connected future.
If you’re curious about how Circuit can help your community navigate this new era in transportation, we’d love to hear from you. Together, we can continue building on this momentum for a brighter, more connected future.
2 https://www.apta.com/research-technical-resources/research-reports/economic-impact-of-public-transportation-investment/
