WASHINGTON, DC - With gas prices high and many Americans relying on public transportation more, U.S. Senator Jack Reed and fellow members of the Senate Banking Committee today held a hearing examining how the federal government can strengthen mass-transit options as a way to reduce dependence on foreign oil.

With gasoline rising to upwards of $4.00 this year, the ridership rates for public transportation have climbed dramatically - an increase of 88 million trips in the first quarter of 2008, according to the American Public Transit Association (APTA).

"Today, we're at a critical juncture for public transportation. While public transit agencies are responding to the higher ridership demand, they are struggling to offset the increased costs brought on by unexpected increases in fuel and other operating expenses," said Reed, a senior member of the Banking Committee. "By making the right choices and investments, we can foster the development of transit systems and add to the benefits that they already offer: fuel savings, reductions in emissions of greenhouse gases and other pollutants, and reduced traffic congestion. Without the right investments, transit agencies will struggle to meet the demand for service when the public wants and needs it most."

Last October, the Rhode Island Public Transit Agency (RIPTA) estimated that an additional 30 peak period buses were needed to offset overcrowding. This year, with even higher ridership, RIPTA is in the midst of holding public hearings about plans to reduce service by 20% in order to close a projected budget shortfall of nearly $11 million. Not only is RIPTA grappling with high diesel costs, which a little over a year ago were projected to be $2.60 a gallon, but with severely depleted revenue from the state gasoline tax.

"Ironically, the fact that more people are driving less and taking the bus has led to a significant loss of revenue from this source. There are two steps that we should take," noted Reed. "First, we need to provide immediate operating assistance to help public transit agencies not only avoid service reductions but meet the growing demand for service. Second, we should provide capital funding that promotes energy and cost savings within the public transportation system. I hope that we can act on each of these ideas, which have been offered in the Senate and House."

Senator Reed has been a champion of public transportation in Rhode Island. Since 2002, he has secured over $21.49 million for RIPTA to modernize its vehicle fleet, improve efficient, and make capital improvements. Reed has also succeeded in increasing the federal formula funding for RIPTA, which provides nearly a quarter of the agency's operating budget.

Reed has directed millions of dollars back to the state for important Rhode Island road and transportation projects. He secured over $230.5 million for Rhode Island in the landmark Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) Act, ensuring that the state receives $2.96 in federal transportation funding for every dollar Rhode Islanders pay in gas taxes.