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How to fix transit construction in America

Matt Yglesias delivers a striking correction to a common American assumption: we aren't failing at transit because we refuse to spend money, but because we are spectacularly inefficient with every dollar we do spend. This piece matters now because the gap between our ambition and our delivery has turned into a chasm that threatens to make large-scale infrastructure impossible, even as global competitors surge ahead.

The Cost of Doing Nothing

Yglesias opens by dismantling the myth of fiscal restraint as the primary barrier. "I used to think that American cities were under-provided with transit because the country was too unwilling to spend money," he admits, before pivoting to a harder truth: "The United States actually spends a lot on transit construction — it just doesn't build a lot of transit per dollar spent." This reframing is crucial. It shifts the debate from a political argument about budget caps to an engineering and administrative argument about waste.

How to fix transit construction in America

The evidence he marshals is stark. He contrasts Boston's 1897 subway, built in four years for roughly $200 million in today's dollars, with New York City's East Side Access project, which took 24 years and cost $11.2 billion per mile. "Had we kept costs steady since, we would be nearly on par with other developed countries," Yglesias notes. Instead, the U.S. has become a global outlier in price without gaining any advantage in speed or scale.

We spend billions on transit projects but deliver far less per dollar than our global peers.

This isn't just about trains; it's about opportunity cost. The commentary highlights how "dysfunctional processes kill light rail routes that would unlock suburban growth" and bus corridors that could slash commute times. The argument lands hard because it connects bureaucratic inertia to tangible human losses—jobs missed, neighborhoods isolated, and pollution unchecked.

A Menu for Reform

Yglesias doesn't just diagnose the problem; he presents a "Transit Abundance Playbook" developed with the Institute for Progress that offers concrete, non-partisan fixes. He identifies five core drivers of high costs: overdesign, poor planning, too many veto points, burdensome permitting, and weak state capacity.

One of the most compelling proposals addresses procurement. Current rules often force agencies to pick the lowest bidder, which Yglesias argues leads to "worse, costlier outcomes over the long term." He advocates for a shift to "best-value selection," where competence is weighed alongside price. This approach mirrors successful models in Europe and could prevent the bid inflation that currently plagues American projects.

Another critical area is standardization. Yglesias points out that U.S. buses cost twice as much as those in peer countries due to excessive customization by local agencies. "Capping federal cost-sharing at a benchmark price and encouraging standardization... could bring costs down while unlocking manufacturing economies of scale," he writes. This is a pragmatic move that appeals to fiscal conservatives who want value for money and transit advocates who need more vehicles on the road.

Critics might note that some of these solutions, like exempting voter-approved projects from environmental reviews, could face legal challenges or public backlash if perceived as cutting corners on safety. However, Yglesias counters that "requiring environmental review for voter-approved transit projects generates costly and redundant documentation" without adding real value.

The Human Cost of Bureaucracy

The piece also tackles the invisible barriers that slow progress. For instance, the Federal Transit Administration's current rules bar agencies from buying land until after permitting is complete, a constraint that "incentivizes agencies to compromise project design." Yglesias argues for allowing early works to reduce costs and improve delivery.

He also highlights the danger of knowledge loss. "Fear of reputational damage and litigation suppresses honest post-mortems on transit projects," he observes. By proposing confidential channels for sharing lessons learned, the playbook aims to break the cycle where every new project repeats the mistakes of the last.

Feats of infrastructure and governance once showed us what was possible, but our policy choices have throttled our ambitions.

This sentiment resonates deeply in an era where "America cannot do big things anymore" is a common refrain. Yglesias suggests that this belief is self-fulfilling, driven by a system designed to fail rather than succeed.

Bottom Line

Yglesias's strongest argument is his ability to translate complex administrative failures into a clear call for efficiency that transcends political ideology. His biggest vulnerability lies in the political will required to dismantle entrenched veto points and change long-standing procurement rules. The reader should watch how federal agencies respond to these specific proposals, particularly regarding environmental review reforms and best-value contracting.

Deep Dives

Explore these related deep dives:

  • The Power Broker: Robert Moses and the Fall of New York Amazon · Better World Books by Robert Caro

  • Third rail

    This technical constraint explains why American subway systems often require expensive, custom-built rolling stock and complex tunneling compared to international networks that use standardized overhead lines.

  • Design–bid–build

    The article's critique of bloated costs directly implicates this traditional procurement method, which forces designers and builders into adversarial relationships that drive up change orders and delays compared to integrated delivery models used elsewhere.

  • Highway Beautification Act

    This specific federal statute mandates extensive environmental reviews for transit projects, creating a legal framework that often adds years of litigation and redesign costs before construction can even begin.

Sources

How to fix transit construction in America

by Matt Yglesias · Slow Boring · Read full article

Back last summer Slow Boring partnered with the Institute for Progress to help solicit ideas for what we’re now calling the Transit Abundance Playbook, a list of ideas to help address the cost bloat that has afflicted American transit construction.

Veteran Slow Boring readers will know that this is a longtime obsession of mine. I’m a native New Yorker who rode the subway every day in high school. When I moved to the totally unfamiliar city of Washington after college, I blindly ended up in Columbia Heights because I was looking for a cheap place near a Metro station. I used to think that American cities were under-provided with transit because the country was too unwilling to spend money. But I’ve learned that the United States actually spends a lot on transit construction — it just doesn’t build a lot of transit per dollar spent.

Improving the cost-effectiveness of projects would get more projects built without any more spending, and that in turn would strengthen the political case for spending. But while it’s easy to identify specific examples of bloated costs, what’s harder is to develop concrete policy ideas that change the way the whole system works.

Now, though, I think there’s a menu of ideas that could really fix the problem.

— Matt

Stop Paying More for Less Transit.

By Will Poff-Webster and Arnab Datta

The United States once led the world in transit construction. In the 19th century, publicly subsidized railroads catalyzed steel production, agriculture, and even financial markets. In the early 20th century, America built the largest network of streetcar tracks in the world, igniting the first suburban boom and making homeownership and jobs available to millions. Subway systems enabled industrial growth and the development of knowledge-economy hubs that fueled American prosperity. Transit’s ability to move large numbers efficiently remains unmatched: Every day, the New York City subway serves more passengers than all American airports combined. Even in car-friendly Houston, more than half of suburban commuters to downtown take the bus.

But America has lost its edge. Today, we lead the world in transit construction costs, and build less as a result. America’s first subway line opened in 1897: a 1.5-mile tunnel in Boston built in just four years at a cost of roughly $5 million (about $200 million today). Had we kept costs steady since, we would be nearly on par with other developed countries. Instead, ...