Transit fares are fees riders pay to use public transportation, representing one funding source alongside taxes and grants. Fare structures include single rides, daily/weekly/monthly passes, and distance-based pricing. Fare revenue typically covers only a portion of transit operating costs (often 30-50%), with the remainder subsidized. Fare setting involves balancing ridership (lower fares attract riders), revenue (higher fares generate more per ride), and equity (affordability for low-income riders). Fare increases are politically sensitive decisions. Reduced fares for seniors, students, and low-income riders address equity concerns. Free transit experiments eliminate fares entirely, funding operations through taxes. Fare evasion enforcement recovers revenue but raises equity concerns when penalties disproportionately affect vulnerable populations.
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