Moody's Flags Rising Federal Funding Risk for US Transit Systems

Moody's Ratings indicates that while the US mass transit sector is currently stable, rising policy risks under the Trump administration could impact smaller and rural systems reliant on federal funding. Analysts urge these operators to maintain budget flexibility as federal support may shift, especially with key transportation authorizations expiring. The administration has already frozen significant funding for major projects, and several large transit systems face fiscal pressure as pandemic-era funding ends. The outlook could turn negative if revenue declines or costs rise, while positive changes would require substantial funding increases.