By Nathaniel Meyersohn, CNN

New York (CNN) — Funding for public train and bus services is so dire that one of the largest cities in America must rely on a sports gambling company to help.

FanDuel, a sports betting app, subsidized train service to and from the NFL’s Philadelphia Eagles home opener last week. The line had been cut amid a funding crunch for the Southeastern Pennsylvania Transportation Authority (SEPTA), the fifth largest transit agency in the United States.

FanDuel paid $80,000 to restore SEPTA’s sports express train service to help shuttle thousands of people to the Eagles’ game. The company said it was “proud to collaborate with SEPTA” to provide fans with reliable transportation.

The roughly 700,000 commuters in and around Philadelphia who ride SEPTA each day have endured longer wait times, more crowded rail and bus lines, and other difficulties for weeks. Last month, state lawmakers failed to reach an agreement to cover the agency’s $213 million budget deficit. Agencies in Chicago, San Francisco and other cities — as well as states including Rhode Island — also face fiscal cliffs that threaten service cuts, fare hikes and layoffs.

Transit agencies often rely on private companies to provide funding in exchange for sponsorships or station naming rights. But FanDuel’s rescue of SEPTA’s line to the Eagles game the day before the matchup is a sign of how transit operators must scramble for funding, transit experts say.

“Transit agencies are underfunded throughout much of the United States. As a result, they often seek out unconventional revenue sources to help cover their gaps,” said Yonah Freemark, who researches housing and transportation at the nonprofit Urban Institute. “This situation speaks to how transit is treated compared to other public services. We don’t ask corporate sponsors to pay for police or fire services, for example.”

It’s not just NFL games – public transit is a popular way to avoid traffic and get to special events like concerts. But the ability of underfunded US transit systems to handle huge crowds will be tested during some upcoming major sporting events. A number of US cities, including Philadelphia, will host the FIFA World Cup next year. The 2028 Summer Olympics will take place in Los Angeles.

Transit ridership is still sluggish in many cities. Work from home has become one of the enduring features from the Covid-19 pandemic. Crime and fear of crime also discourage some people from mass transit, despite transit being safer than driving a car.

Ridership nationwide is at about 85% compared to pre-pandemic levels, according to the industry group American Public Transportation Association. For example, SEPTA bus ridership is at 82% of pre-pandemic levels, while metro rail ridership is at 72%, according to the transit agency’s latest figures.

This slow ridership recovery is making it harder to fund operations, especially for larger agencies that have historically relied more on fares for revenues, Freemark said.

But if agencies raise fares too high or cut services too deep, they will lose even more riders.

“This puts them in a difficult spot,” he said.

‘Not a sustainable long-term solution’

Since August 24, riders in the Philly metro area have faced service cuts that SEPTA said had “devastating effects.” That includes a 20% overall cut in metro rail and bus services with 32 bus rides eliminated.

SEPTA said it would restore full service on September 15 and increase fares by 21.5% to $2.90. Pennsylvania Gov. Josh Shapiro’s administration approved a transfer of hundreds of millions of dollars meant for long-term transit repairs and maintenance to support SEPTA’s daily operations.

“Transferring capital funds to cover operating expenses, with no commitment to replace them, is not a sustainable long-term solution to SEPTA’s current budget crisis,” SEPTA said in a statement on Monday.

The funding crisis at SEPTA and other transit agencies across the country can’t be solved by corporate sponsorship. The solution calls for more federal support, transit advocates say.

About two-thirds of US transit agencies’ revenue comes from the government, but most of that is state and local government. The federal government spends much more on roads: 80% of the federal gas tax, which helps fund infrastructure projects, is devoted to roads. Twenty percent goes to transit.

“(Roads) have predictable means of funding. Transit agencies by and large don’t,” said American Public Transportation Association CEO Paul Skoutelas.

The-CNN-Wire
™ & © 2025 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.