https://doi.org/10.1177/1087724X18808533 Public Works Management & Policy 1–14 © The Author(s) 2018 Article reuse guidelines: sagepub.com/journals-permissions DOI: 10.1177/1087724X18808533 journals.sagepub.com/home/pwm Research & Theory New Starts, Growing Inequities: Federal and Local Public Transit Funding Kate Lowe 1 and Em Hall 1 Abstract Equity concerns regarding local revenue sources are increasingly important in the United States, as local sales taxes for transportation increase amid perceived federal funding shortfalls. This study examines shifts in the federal role and local funding sources for public transit projects supported by the New Starts program. The analysis finds that total federal New Starts spending grew over this period, but was distributed across more costly projects, with a resulting decrease in the average federal share per project. As expected, there was increased sales tax use at the local level. The increase in local spending on transit should be met with concern. Prior research has established that sales taxes fail along both the beneficiary to pay and ability to pay equity principles. Thus, the recent massive commitment to expanding public transit infrastructure relies on concerning funding mechanisms and may also fail to prioritize the needs of those with limited accessibility. Keywords transportation: public transit, equity and efficiency issues, infrastructure: capital financing Introduction How we pay for transportation—the sources of funds and rules about their distribution— matter for equity. Equity questions about local revenue sources are increasingly impor- tant, because local and regional sales taxes have increased amid perceived federal funding shortfalls. Sales tax fares poorly along two common equity concepts—ability to pay and beneficiary to pay. Yet, already by 2005, sales taxes accounted for 35.5% of 1 The University of Illinois at Chicago, USA Corresponding Author: Kate Lowe, The University of Illinois at Chicago, 412 South Peoria Street, Room 215, MC 348, Chicago, IL 60607, USA. Email: katelowe@uic.edu 808533PWM XX X 10.1177/1087724X18808533Public Works Management & PolicyLowe and Hall research-article 2018