Iowa City implemented a two-year pilot program in August 2023 to eliminate bus fares, aiming to reduce car emissions and promote public transit use. The program's success led to the City Council voting to extend it for another year, funded by a 1 percent increase in utility taxes and doubled public parking rates.
The initiative resulted in a significant increase in bus ridership, surpassing pre-pandemic levels by 18 percent. Bus drivers reported experiencing less traffic congestion, and government calculations indicated a reduction of 1.8 million miles driven on city streets annually, leading to an estimated decrease of 24,000 metric tons of carbon dioxide emissions per year, equivalent to removing 5,200 vehicles from the road.