passenger subsidy

Passenger subsidy is financial support provided by governments or organizations to reduce the cost of transportation for travelers. This funding helps make public transit more affordable, encouraging people to use buses, trains, or other transit services rather than private vehicles. By subsidizing fares, authorities aim to increase ridership, reduce traffic congestion, and lower environmental impact. Essentially, it’s a way to share the cost of transportation so that passengers pay less than the actual operating expenses, ensuring transportation remains accessible and sustainable for a broader community.