In 2000, mass transit systems provided over 9 billion passenger trips and employed about 350,000 people. The nation’s transit systems include all multiple-occupancy-vehicle services designed to transport customers on local and regional routes, such as bus, trolley bus, commuter rail, vanpool, ferry boat, and light rail services, and are valued at a trillion dollars. As figure 1 shows, buses are the most utilized form of transit, providing almost two-thirds of all passenger trips. A number of organizations are involved in the delivery of transit services in the United States including federal, state, and local governments and the private sector. In particular: FTA provides financial assistance to transit agencies to plan and develop new transit systems and operate, maintain, and improve existing systems. FTA is responsible for ensuring that the recipients of federal transit funds follow federal mandates and administrative requirements. FTA’s Office of Safety and Security is the agency’s focal point for transit safety (freedom from unintentional danger) and security (freedom from intentional danger). State and local governments also provide a significant amount of funding for transit services. As figure 2 shows, state and local governments provide funding for over 40 percent of transit agencies’ operating expenses and about a quarter of their capital expenses. According to statute, states are also responsible for establishing State Safety Oversight Agencies to oversee the safety of rail systems of transit agencies. Transit agencies, which can be public or private entities, are responsible for administering and managing transit activities and services. Transit agencies can directly operate transit service or contract for all or part of the total transit service provided. About 6,000 agencies provide transit services in the United States, and the majority of these agencies provide more than one mode of service. Although all levels of government are involved in transit security, the primary responsibility for securing transit systems rests with the transit agencies. Legislation also affects transit services, including transit safety and security. In particular, the Transportation Equity Act for the 21st Century (TEA-21) is the legislation authorizing current federal transit programs. TEA-21 authorized about $36 billion for federal transit programs from fiscal year 1998 through fiscal year 2003. The largest federal transit program is the urbanized area formula grant program, which accounts for almost one- half of TEA-21’s total authorizations for all transit programs. The urbanized area formula grant program provides federal funds to urbanized areas (jurisdictions with populations of 50,000 or more) for transit capital investments, operating expenses, and transportation-related planning. However, TEA-21 prohibits transit agencies that serve urbanized areas with populations of 200,000 or more from using urbanized area formula funding for operating expenses. Recipients of urbanized area formula funds are also required to spend at least 1 percent of these funds to improve the security of existing or planned mass transportation systems unless the transit agencies certify that such expenses are unnecessary. Additionally, the Aviation and Transportation Security Act created TSA within the Department of Transportation and gave it responsibility for the security of all transportation modes, including transit. The act also assigns regulatory authority to TSA for all transportation modes. Throughout the world, public surface transportation systems have been the target of terrorist attacks. For example, the first large-scale terrorist use of a chemical weapon occurred in 1995 on the Toyko subway system. In this attack, a terrorist group released sarin gas on a subway train, killing 11 people and injuring about 5,500. In addition, according to the Mineta Transportation Institute, surface transportation systems were the target of more than 195 terrorist attacks from 1997 through 2000. As figure 3 illustrates, buses were the most common target during this period. Transit agencies face significant challenges in making their systems secure. Certain characteristics of transit systems, such as their high ridership and open access, make them both vulnerable to attack and difficult to secure. The high costs of transit security improvements, coupled with tight budgets, competing needs, and a restriction on using federal funds for operating expenses in large urban areas also creates a challenge for transit agencies. Moreover, because of the numerous stakeholders involved in transit security, effective coordination can become a problem. According to transit officials and transit security experts, certain characteristics of transit systems make them inherently vulnerable to terrorist attacks and difficult to secure. By design, transit systems are open (i.e., have multiple access points and, in some cases, no barriers) so that they can move large numbers of people quickly. However, the openness of transit systems can leave them vulnerable because transit officials cannot monitor or control who enters or leaves the systems. In addition, other characteristics of some transit systems—high ridership, expensive infrastructure, economic importance, and location (e.g., large metropolitan areas or tourist destinations)—also make them potentially attractive targets. Moreover, some of these characteristics make transit agencies difficult to secure. For example, the number of riders that pass through a transit system—especially during peak hours—make some security measures, such as metal detectors, impractical. In addition, the multiple access points along extended routes make the costs of securing each location prohibitive. Further complicating transit security is the need for transit agencies to balance security concerns with accessibility, convenience, and affordability. Because transit riders often could choose another means of transportation, such as a personal automobile, transit agencies must compete for riders. To remain competitive, transit agencies must offer convenient, inexpensive, and quality service. Therefore, security measures that limit accessibility, cause delays, increase fares, or otherwise cause inconvenience could push people away from transit and back into their cars. Our discussions with transit agency officials and our preliminary survey results indicate that striking the right balance between security and these other needs is difficult. For example, a number of survey respondents reported that balancing riders’ need for accessibility with security measures is a significant barrier to making their transit systems as safe and secure as possible. Funding security improvements is a key challenge for transit agencies. Our preliminary survey results and our interviews with transit agency officials indicate that insufficient funding is the most significant challenge in making their systems as safe and secure as possible. Moreover, our preliminary survey results indicate that the most common reason for not addressing items identified as needing attention through safety and security assessments is insufficient funding. Factors contributing to funding challenges include high security costs, tight budgets, competing budget priorities, and a prohibition on transit agencies in large urban areas from using FTA funds for operating expenses. Transit security investments can be quite expensive. While some security improvements are inexpensive, such as removing trashcans from subway platforms, most require substantial funding. For example, one transit agency estimated that an intrusion alarm and closed circuit television system for only one of its portals would cost approximately $250,000. According to our preliminary survey results, the top three safety and security funding priorities of transit agencies are enhanced communication systems, surveillance equipment, and additional training. The transit agencies we visited have identified or are identifying needed security improvements, such as upgraded communication systems, additional fencing, surveillance equipment, and redundant or mobile command centers. Of the 10 transit agencies we visited, 8 agencies had developed cost estimates of their identified improvements. The total estimated cost of the identified security improvements at the 8 agencies is about $711 million. The total cost of all needed transit security improvements throughout the country is unknown; however, given the scope of the nation’s transit systems and the cost estimate for 8 agencies, it could easily amount to billions of dollars. Transit agency officials told us that they are facing tight budgets, which make it more difficult for these agencies to pay for expensive security improvements. According to most of the agencies we visited, the weakened economy has negatively affected their revenue base by lowering both ridership and/or tax revenues dedicated to transit. In particular, 8 agencies we visited reported that ridership has dropped this year, primarily because of the slow economy. The decreased ridership levels have lowered fare box revenue. In addition, state and local sales taxes, which provide revenue for many transit agencies, have declined with the stalled economy and reduced the transit agencies’ revenue, according to a number of transit agency officials. Other competing funding needs also present a challenge for transit agencies. Given the tight budget environment, transit agencies must make difficult trade-offs between security investments and other needs, such as service expansion and equipment upgrades. For example, an official at one transit agency stated that budget shortfalls and expenditures for security improvements have delayed some needed capital projects and reduced the budgets for all departments—except the safety and security budget. Similarly, an official at another agency reported that his agency is funding security improvements with money that was budgeted for nonsecurity projects. According to our preliminary survey results, a number of agencies view balancing safety and security priorities against other priorities as a significant challenge in making their systems as safe and secure as possible. Another reported challenge in funding some security improvements is a statutory limitation on using FTA funds for operating expenses. Specifically, TEA-21 prohibits transit agencies in large urbanized areas from using urbanized formula funding for most operating expenses. This prohibition limits many agencies’ ability to use FTA funds for some security-related expenses, such as salaries for additional security personnel and training. For example, officials from a number of agencies said this prohibition was a significant barrier to funding needed security improvements. However, several agency officials noted that the elimination of this prohibition would be helpful only if additional funding were also provided. Coordination among all stakeholders is integral to enhancing transit security, but it can create additional challenges. Numerous stakeholders are involved in decisions that affect transit security, such as decisions about its operations and funding. For example, states are responsible for establishing agencies that oversee the safety of transit systems with rail. As we have noted in previous reports, coordination among all levels of government and the private sector is critical to homeland security efforts, and a lack of coordination can create problems, such as duplication of effort. In addition, the national strategy for homeland security recognizes the challenges associated with intergovernmental coordination but emphasizes the need for such coordination.