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

Mamdani to Pick Mike Flynn for DOT Commissioner: Sources

Flynn worked at DOT from 2005 to 2014 on pedestrian and bike projects and capital planning.

December 31, 2025

Wednesday’s Headlines: 2nd-Most Important Job Edition

When will Mayor-Elect Mamdani name a DOT commissioner? Plus other news.

December 31, 2025

The Year in Mamdani: The Incoming Mayor Was on the Streetsblog Beat in 2025

These are the transportation policy highlights of Mayor-elect Zohran Mamdani's improbable 2025 run for City Hall.

December 31, 2025

Danger Ahead: City To Let Car Drivers Reoccupy Forest Park Next Week

Freedom Drive will no longer be free from drivers.

December 30, 2025

Streetsies 2025: The Losers of the Year

If you want to talk about losers, this year had 'em in bunches. Hate-vote for your favorite!

December 30, 2025

Tuesday’s Headlines: Going in Style Edition

Kudos to an old nemesis ... and other news.

December 30, 2025
See all posts