Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Streetsblog

The Federal Government Wants to Bribe You to Drive to Work

Did you need another reason to be disappointed in the federal government? Well today's your lucky day!

false

Remember when we talked about how subsidies should only be used to encourage behaviors beneficial to society. Well, Washington didn't get the message. Congress is about to let a tax break for transit riders expire while allowing an effective increase in the tax break for commuter parking.

The federal government is essentially bribing people to drive cars. Commuters who drive to work will see their monthly parking benefit increase $10, to a maximum of $240. Meanwhile, those who choose a healthier, safer and more cost-effective alternative -- transit -- will see their tax benefit drop from a maximum of $230 to $125.

This is what you might call bad policy, says Matt Nelson at Network blog California Streets Blog:

Parity between the two tax benefits was established in 2010, but that provision expires this year. Now, as our cities cut transit services and increase fares, the government is set to impose a de facto fare increase on commuters using this benefit. They are undermining transit systems that are publicly owned by providing financial incentives to drive. This causes increased wear and tear on publicly owned roads, not to mention the negative effect suburban commuters have on a city’s pedestrian and transit conditions. The incentives are all wrong – these commuter tax breaks should encourage drivers to switch to high-capacity and often underutilized public transit systems while taking pressure off our traffic-clogged freeways.

To demonstrate just how lopsided this policy is, I took a look at the cost of a monthly parking pass at San Francisco’s Fifth and Mission Garage – for the sake of this exercise, let’s say a commuter from Santa Clara parks here Monday through Friday while working at her job South of Market. The monthly rate for a reserved spot at this garage is $325, meaning our Santa Clara commuter will get a 74% monthly subsidy from the federal government for the cost of her parking if she takes advantage of the 2012 tax break. The other option for our Santa Clara commuter is to take Caltrain from Santa Clara to 4th and King streets, and then take Muni to her job South of Market – the monthly Caltrain and Muni pass for this trip is $289. Taking advantage of the projected 2012 transit tax break assuming no congressional action, her monthly trip is subsidized at a rate of only 42% percent. The incentive to drive is clear.

Transportation for America is asking its supporters to write their lawmakers to oppose this backward policy.

Elsewhere on the Network today: The Active Transportation Alliance says that adding a few bike lanes to 4,000 miles of roadways does not constitute a "war on cars," despite what the Chicago Tribune says. BTA Oregon has the perfect argument to convince skeptics of the need to make cities more bike-friendly. And WalkBikeJersey outlines a case where cycling advocacy prevented a community from imposing a sidewalk ban.

Stay in touch

Sign up for our free newsletter

More from Streetsblog New York City

Cyclist Badly Injured By Truck Driver at Busy Midtown Corner

The victim may have lost her leg, one witness said.

West Siders: Better Bike Lanes, Not Bans, Will Make Central Park Safer

Central Park needs protected bike lanes at its perimeter and on its transverses to keep non-recreational users out.

January 14, 2026

Not So Fast: Advocates Aren’t Sold on Gov. Hochul’s AV Push

"There is no evidence that autonomous vehicles help us achieve our goals to make our state or city’s streets more people-centered," one group said.

January 14, 2026

Wednesday’s Headlines: Hochul Has Her Say Edition

The "State of the State" is Mamdani — but Hochul is still the governor. Plus more news.

January 14, 2026

Opinion: Stop Asking If People Want to Ride Bikes

"We shouldn’t be aiming to nudge a few percentage points in public opinion. Our goal should be to make freedom of mobility so compelling that people demand it."

January 14, 2026

SCOUT’s Honor: Hochul To Expand MTA Program Pairing Nurses and Cops to Combat Mental Illness in Subways

Gov. Hochul's pitch to state lawmakers follows a nine month-long investigation by Streetsblog into how New York's social safety net struggles to help ill people in the subway.

January 13, 2026
See all posts