Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Federal Transit Administration

Report: Bush-Era Transit ‘Cost-Effectiveness’ Rule to Cost Charlotte $67M

When the Obama administration moved in January to undo a 2005 rule that made a federal "cost-effectiveness" rating the most important factor in determining which transit projects received funding, critics and even some transit advocates were skeptical, questioning whether the U.S. DOT would be able to legitimately quantify the community-building benefits of rail and bus networks.

Charlotte_SharonRdWest1.jpgThe new light rail line in Charlotte, North Carolina. (Photo: UrbanRail.net)

But federal officials continued to describe the shift as a significant boost for local transit planners, who will no longer need to design the budgets for new transit lines around the confines of a cost-effectiveness formula that attempted to measure the "incremental cost per hour" for each traveler.

Those who cheered the demise of the cost-effectiveness rule got new ammunition today from Greenwire, which sent a reporter to Charlotte, North Carolina, to track the city's plans for expanding its three-year-old light rail line.

The full story is available only to subscribers, but it puts a $67 million price tag on local  transit planners' mandate to comply with the Bush-era cost-effectiveness standard. As Greenwire's Josh Voorhees explains:

Charlotte officials had originally wanted to build theline -- the first in a planned network spanning the metro area -- withthree-car trains. But the project was scaled back to a two-car systemto comply with a complicated cost-effectiveness formula then at theheart of the U.S. Transportation Department's criteria for federalfunding.

"In order to get the score we needed, they told uswe had to find a way to cut the project's scope," said John Muth, chiefdevelopment officer for the Charlotte Area Transit System. "We didn'treally have other options if we wanted the federal funding."

Now, as the city plans the second phase of its light-rail project, athree-car, 11-mile extension of the existing line from Uptown intonortheast Charlotte, it also must retrofit the existing track to carrythe longer trains. That means not only buying more rail cars, but alsolengthening platforms and boosting power distribution. Estimated pricetag of the retrofits: an additional $67 million.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Tuesday’s Headlines Went the Wrong Way

Multi-lane one-way streets: bad. Single-lane two-way streets: good.

February 24, 2026

What It Would Take to Map Every Sidewalk In Your State

States and tech companies keep detailed records of virtually every driving lane in America — but not every sidewalk. Until now.

February 24, 2026

New Calif. Legislation, Backed by Bike Safety Groups, Proposed to Regulate E-Motos/E-Bikes

Electric bicycles are transforming how Californians get around, but the rapid rise of high-powered electric devices has created confusion that puts people at risk,” said Marc T. Vukcevich, Director of State Policy for Streets For All.

February 23, 2026

The Wonders of Biking in Taiwan

One of San Francisco's most notable urbanists explores Taipei's night markets and bike infrastructure. He wonders: can San Francisco adopt their biking culture?

February 23, 2026

Why Is the Governor of New York Trying to Make It Easier to Deny Traffic Violence Victims Insurance Payouts?

The governor is still fighting to make it cheaper to drive with a reform that would reduce compensation to some crash victims.

February 23, 2026

Study: Most Of America’s Paint-Only Bike Paths Are On Our Deadliest Roads

Even worse, most Americans see these terrible lanes and think, "I'd be crazy to ride a bike" — and the cycle continues.

February 23, 2026
See all posts