Review of the Federal Transit Administration’s Transit Economic Requirements Model

Document Type


Publication Date


Subject Area

economics - capital costs, economics - appraisal/evaluation, economics - finance, place - north america


Asset management Capital expenditures, Capital investments, Estimates, Estimating, Financing, Public transit


The Transportation Research Board's (TRB's) Review of the U.S. Federal Transit Administration’s (FTA's) Transit Economic Requirements Model (TERM) examines whether TERM provides reasonable and appropriate estimates of condition and investment needs for its intended purposes. The report also examines TERM’s reliance on a backlog of capital investments as an appropriate basis for developing future capital funding requirements. The FTA's TERM is a tool for estimating the nation’s transit capital expenditure needs over a 20-year period. TERM’s primary use is in the preparation of the U.S. Department of Transportation’s biennial reports to Congress on the conditions and performance of U.S. highways, bridges, and public transit systems. The report recommends that FTA develop methods to estimate the effect that attaining national goals for transit asset physical condition would have on transit performance and to estimate how improved asset management practices would affect capital expenditure needs.


Permission to publish the abstract has been given by Transportation Research Board, Washington, copyright remains with them.