Rural and smaller urban transit systems are likely to be more exposed to adverse policy changes from the Trump administration because they rely more heavily on federal funding, according to Moody’s Ratings.
The rating company has assigned the US mass transit sector a stable outlook, citing expectations that growth in state and local revenue will keep pace with inflation. Analysts cautioned, however, that smaller systems should maintain budget flexibility, liquidity and contingency plans to “mitigate unexpected delays or shifts in federal funding,” according to Moody’s 2026 mass transit outlook released Tuesday.
Funding risks are also rising as key federal transportation ...