A new $8 million state grant could help GRTC keep fares at no cost to riders for at least another three years.

The Virginia Department of Rail and Public Transit announced the award to Richmond’s public transit company based on agreements that GRTC could secure another $12 million in matching funds, most notably from the city, to keep its no-fare policy in place through June 2025.

Rides currently are without charge on Pulse and regular bus routes and for CARE paratransit service within much of the city. The only charge is for CARE paratransit trips that are outside the CARE service area, according to GRTC.

Julie Timm, GRTC’s chief executive officer, welcomed the new funding that she said would enable residents to get to work, see doctors and buy groceries without worrying about transit costs. She stated the elimination of fares in March 2020 after the start of the pandemic has been a boon to people in high poverty sections of Richmond.

“Our most vulnerable neighbors no longer are forced to choose between the cost of transportation and the cost of food or medicine,” she stated.

GRTC has enough money from federal COVID-19 relief funds to keep free fares through June 2022, Ms. Timm stated. The new grant was essential to ensuring GRTC could avoid restarting fare collections after that, she noted.

According to Ms. Timm, fares brought in $5 million a year but were costing the average bus rider $20 a week, a significant toll for the majority of riders whom data show have yearly incomes of $25,000 or less.

The new $8 million grant represents about 40 percent of the $20 million Ms. Timm stated would be needed to keep GRTC fare free for three years.

Part of the matching money would come from Virginia Commonwealth University, Ms. Timm stated. VCU has approved a three-year extension to its agreement to pay GRTC $1.3 million a year to allow students, staff and faculty to ride Pulse and other routes without charge, she stated.

Ms. Timm also stated that Richmond Mayor Levar M. Stoney agreed to provide additional city funding to meet the match requirements for the grant.

She added that GRTC would seek partnerships with other institutions and businesses that benefit from transit service to gain commitments for funding to help reduce the city’s obligation.