Circuit Blog — Circuit

4 Smart Ways Cities Are Funding Microtransit Today

Written by Circuit Team | Jul 16, 2025 4:48:21 PM

From parking meters to clean mobility grants, here's how leaders are getting it done.

Launching a microtransit program doesn’t require a massive federal grant, although those definitely help. Across the country, cities are tapping into a mix of local dollars, state funds, and creative partnerships to build flexible, zero-emission transit options that serve residents and visitors alike.

Here are four proven paths cities are taking:

1. Parking and Tourism Dollars

San Diego funded its microtransit program entirely through parking revenue. In Bellevue, Washington, Visit Bellevue used hotel tax dollars to connect visitors to retail and cultural hubs that generated over $900k in monthly economic impact.

 

2. Local Special Districts

Boca Raton funded its circulator through Community Reinvestment Act (CRA) funds focused on revitalizing downtown. In Washington D.C., the Southwest Business Improvement District (BID) launched an innovative transit zone to support local business growth.

3. State and Regional Grants

Florida’s Department of Transportation grants (FDOT) and California’s Clean Mobility Options program have helped cities like Pompano Beach and Chula Vista launch and grow Circuit services. Some grants contain cost-shares ranging between 10%- 50% of to ensure local buy-in. While others can cover the full cost of programs. 

 

4. Private and Nonprofit Partnerships


From
Toyota in Dallas to Amazon in Bellevue, private sponsors are helping cities extend service and fill funding gaps. In Trenton, New Jersey, a nonprofit used a state environmental grant to fund city-wide transit focused on equity and access.

 

 

What Funding Unlocks for Communities

These funding strategies are more than financial tools. They create the foundation for lasting improvements in access, equity, and economic vitality.

Circuit has helped many cities launch grant-funded pilot programs to test and prove out microtransit. When cities saw the success of the pilot programs, they secured long-term funding to expand and sustain the service.

When cities invest in microtransit the results go beyond mobility. Communities see results, whether it’s less congestion, better access between neighborhoods and downtowns, or reliable ways for residents to get to work, pick up groceries, or reach essential services.

In Bellevue, the program generated over $900,000 in monthly economic impact. In Chula Vista, seniors gained free access to groceries, medical appointments, and daily essentials. In Trenton, microtransit helped connect residents to jobs and key services in underserved neighborhoods. Cities like San Diego and Boca Raton turned to microtransit to relieve parking pressure and improve access to downtown areas.

By matching local goals with the right funding mix, cities are building cleaner, more connected communities that serve everyone.

Want the full breakdown?
The microtransit Funding Guide includes detailed case studies and step-by-step strategies to help your city find and combine funding streams.

Download the Full Guide