Put Portland’s Climate Dollars to Work: A Practical Plan for Fareless & Affordable Transit
Why This Matters Now
Portland has a rare and immediate opportunity to align our climate goals with one of the most effective tools we have to reduce emissions: public transit.
Today, the Portland Clean Energy Fund is generating far more revenue than anyone expected—growing from an original projection of $60 million per year to nearly $200 million annually today. It has already accumulated over $738 million sitting unspent, per the city's FY2024-25 audited financial report, with more coming in every year. At the same time, TriMet is facing budget shortfalls, cutting service, and struggling to rebuild ridership—even though total annual fare revenue is just $63.65 million.
These numbers tell a clear story: Portland already generates multiple times the revenue needed to replace fares, every single year.
My plan connects these two realities. I propose using a portion of PCEF funding to move Portland to fareless transit for all—quickly, responsibly, and with clear accountability. This means removing cost as a barrier to riding transit, increasing ridership, and stabilizing the system financially, all while delivering real climate impact.
Just as importantly, this is not a one-time fix—it is sustainable. PCEF is a recurring, growing revenue source tied to large retailers, and current collections alone are sufficient to cover the cost of eliminating fares while still leaving substantial funding available for other climate priorities. Over the coming decades, this creates a stable, predictable funding stream that can support a fareless transit system long-term without new taxes.
This isn’t about taking unnecessary risks or waiting years for action. It’s about using the resources we already have—at scale, every year—with focus and discipline to deliver better results for Portlanders today.
What’s Broken and Who It’s Failing
Portland’s climate and transportation strategies are operating in silos—and the consequences are increasingly visible. PCEF is overperforming financially but underutilized in practice, with revenues far exceeding initial expectations and funds accumulating faster than they can be put to work.
Meanwhile, TriMet’s financial model remains under pressure. Fare revenue contributes only a small share of operating income—approximately $63.65 million last year—yet it remains critical to maintaining service. As the agency faces structural deficits, service reductions are becoming a real problem, disproportionately affecting those who rely on transit the most.
Working families, low-income residents, and seniors face rising costs and less reliable service
Small businesses and commercial corridors lose foot traffic when transit becomes less accessible
Visitors and tourists encounter a fragmented, pay-to-navigate system that makes Portland harder to experience without a car
From a climate perspective, the city is missing a major opportunity. Every rider lost to cost or inconvenience is another car on the road—and another step away from our climate goals.
Despite strong public support for climate action, Portland is not maximizing the most direct and scalable solution we have: making transit simple, accessible, and free for everyone.
Why This Problem Persists
This isn’t a funding problem—it’s a systems problem. Portland’s climate investments and transit operations are managed separately, with no clear mechanism to align dollars with outcomes. PCEF was designed to fund capital projects and community programs that take time to deploy, rather than operational investments like transit access that can scale quickly and deliver immediate emissions reductions.
At the same time, TriMet relies on fare revenue as a steady—if relatively small—source of operating income, making it cautious about eliminating fares without a dependable replacement.
The result is a misalignment of incentives: funding is available but constrained, while transit faces financial pressure despite being one of our most effective climate tools. Dollars and outcomes aren’t connected.
Until we tie funding directly to measurable results—higher ridership, lower emissions, and better access—Portland will continue to have resources without impact at scale.
A Clear, Practical Solution
My proposal is straightforward: make transit fareless for everyone in Portland—and do it quickly, responsibly, and with clear accountability using PCEF funding.
We start with immediate action. In the near term, we expand fare-free access for low-income residents, students, and seniors while putting in place the funding needed to eliminate fares systemwide. This delivers early benefits to those who rely on transit most and creates a clear path to full implementation.
The objective is simple—remove cost as a barrier and make transit the easiest way to get around Portland. To achieve that, we replace fare revenue with a stable, predictable funding source, using a portion of PCEF tied directly to measurable results like increased ridership, reduced emissions, and improved access. As funding is secured and service capacity keeps pace, fares are phased out entirely on an accelerated timeline.
At the same time, we invest in what makes fareless transit successful: frequent and reliable service, safe and clean vehicles, and strong partnerships with employers and the tourism sector to grow ridership across residents and visitors alike.
This is an ambitious but disciplined plan—align funding with outcomes, move quickly, and deliver a transit system that is simple, accessible, and free for everyone.
Why This Works
This approach is both economically sound and operationally effective. Making transit fareless increases ridership, strengthens the local economy, and delivers one of the highest-return climate investments available—while using an existing, voter-approved funding source. Key benefits include:
Economic Impact: Increased foot traffic and access to jobs strengthen small businesses, downtown recovery, and neighborhood commercial corridors.
Household Savings: Eliminating fares reduces transportation costs, putting meaningful dollars back into the pockets of working families and low-income residents.
Operational Efficiency: Removing fares speeds up boarding, reduces delays, and lowers administrative and enforcement costs—improving overall system performance.
Climate Return on Investment: Higher ridership directly reduces car trips and emissions, making transit one of the most effective uses of climate dollars.
Financial & Political Feasibility: Funded in part through an existing, voter-approved source (PCEF), this approach avoids new taxes and can be implemented with clear accountability and measurable results.
A Real-World Example
Kansas City, Missouri—home to roughly 520,000 residents—provides one of the most relevant real-world examples of fare-free transit in the United States. In 2020, the city eliminated bus fares systemwide with the goal of improving access, equity, and mobility. Prior to the change, the system served roughly 12 million rides annually and relied on fares for only about 9–10% of its operating budget, making the transition financially feasible.
The results show meaningful, measurable impact:
Ridership increased: Studies show fare-free systems like Kansas City saw ~22% higher ridership compared to similar cities without fare-free policies, even after accounting for pandemic effects.
New riders entered the system: About 17% of surveyed riders began using transit specifically because it became free.
Existing riders used transit more: Nearly 40% of riders increased their frequency of trips, improving access to jobs, school, and services.
Economic and mobility gains: Modeling projected 39–44% increases in employment, economic output, and personal income tied to improved access.
Climate and system benefits: The policy was associated with thousands of tons of reduced emissions annually and faster boarding times due to eliminating fare collection.
Equally important, the benefits were strongest for those who rely on transit the most. A majority of riders were low-income and transit-dependent, and removing fares significantly improved mobility and quality of life for these populations.
The lesson for Portland is clear: fare-free transit drives real gains in ridership and access—but it works best when paired with reliable, frequent service. Kansas City proved the concept. Portland, with a larger transit system, stronger ridership base, and a dedicated funding source like PCEF, is positioned to go further—delivering greater emissions reductions, stronger economic impact, and a transit system that works for everyone at scale.
Acknowledging Reality
No policy of this scale is without risk—but in this case, the risks are manageable and far outweighed by the upside. The primary concern is replacing fare revenue without destabilizing transit operations. This plan addresses that directly by pairing fareless transit with a dedicated, predictable funding source. At the same time, increased ridership—while a goal—can put pressure on the system if service doesn’t keep pace. That’s why affordability is matched with continued investment in frequency, reliability, and overall capacity.
There are also practical and political considerations. Some stakeholders may question using PCEF funds for transit, but the case is strong: transit delivers measurable emissions reductions and equity benefits at scale—often more directly than other investments. Concerns around safety, cleanliness, and rider experience are real, and must remain a priority to maintain public trust and sustained ridership.
The bottom line is this: the downside risks are real but solvable, and they are significantly outweighed by the economic, mobility, and climate benefits. By addressing these challenges upfront and tying funding to clear results, Portland can move forward with a plan that is not only ambitious—but disciplined, credible, and built to deliver.
From Idea to Action
Execution is what turns this into results. This plan moves quickly, with clear ownership, defined milestones, and measurable outcomes from day one.
In the first 100 days, the City of Portland should convene a joint working group with TriMet and PCEF leadership, empowered to act on funding, legal pathways, and implementation. The immediate priorities are to move quickly on funding, launch early pilots, and establish clear performance baselines.
Key actions include:
Establishing a City–TriMet–PCEF task force with decision-making authority
Securing an initial PCEF funding commitment to begin replacing fare revenue
Launching an expanded fare-free pilot for low-income riders
Defining the legal pathway for allocating PCEF funds to transit operations
Establishing baseline metrics for ridership, fare revenue, and service levels
Launching initial public reporting and transparency tools
Over the next 6 to 12 months, the focus is on scaling toward systemwide fareless transit. Fare-free access expands to students and seniors, employer partnerships are launched to increase commuter ridership, and fares begin to be phased out on high-ridership routes—paired with targeted investments in frequency and reliability. A public dashboard should go live early to track performance and build trust.
Key actions include:
Expanding fare-free access to students, seniors, and other priority groups
Launching employer-supported transit programs to increase ridership
Phasing out fares on high-ridership routes or corridors
Increasing service frequency and reliability where demand is growing
Publishing real-time performance data on ridership, costs, and emissions
From year one into year two, the goal is full implementation. With a stable PCEF-backed funding stream in place, Portland can eliminate fares systemwide. Service levels should adjust in real time to demand, with continued investment in safety, cleanliness, and rider experience.
Accountability is built in, with consistent tracking of:
Ridership growth
Emissions and vehicle miles reduced
Cost per additional rider
Rider satisfaction and safety
This is a plan built to deliver: move fast, measure results, and scale to a transit system that is simple, reliable, and free for everyone.
What Success Looks Like
If implemented effectively, this policy can materially change how Portland moves and grows—and the data shows the upside is real. In cities like Kansas City, fare-free transit led to 20%+ increases in ridership, with roughly 1 in 6 riders new to the system. Applied to Portland, that means tens of thousands of additional daily trips shifting from cars to transit—reducing congestion and delivering immediate climate benefits.
More residents will choose transit because it is simple, reliable, and free. Visitors and tourists will also be able to navigate Portland seamlessly without a car, making the city more accessible while reducing traffic and parking demand in high-activity areas.
The economic impact is meaningful. Eliminating fares can save frequent riders $1,000+ per year, putting money back into household budgets while increased foot traffic supports downtown and neighborhood businesses. At the same time, even a 10–20% shift in trips to transit means thousands fewer car trips each day—lowering emissions and improving air quality.
The result is a city that is easier to navigate, more economically active, and better aligned with its climate goals.
Bottom Line
Portland doesn’t have a resource problem—it has an alignment problem. Climate dollars are piling up while transit service is under pressure. By using PCEF to fund fareless transit for all, we can increase ridership, reduce emissions, and strengthen the economy—without new taxes. The opportunity is clear. Now it’s time to act.
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SOURCES
PBS NewsHour, “America’s First Billion-Dollar Climate Fund Sparks Spending Debate in Portland”
CivicWell, “The Risks and Rewards of Portland’s Clean Energy Fund”
TriMet, Annual Comprehensive Financial Report, FY2025 (audited passenger fare revenue: $63.65M)
A short source list of links for the Kansas City data