The Massachusetts Bay Transportation Authority (MBTA) has initiated the Income-Eligible Reduced Fares (IERF) program, which provides reduced fare options for income-eligible riders across all transportation modes, including The RIDE paratransit service. Launched in September 2024, the program allows Massachusetts residents with incomes up to 200% of the Federal Poverty Level to access fares that are at least 50% off the standard price, supported by a $5 million allocation from the FY 2024 budget and a $20 million allocation from the FY 2025 budget. The IERF program aims to alleviate transportation barriers for low-income individuals, with over 21,736 riders enrolled by March 2025, and emphasizes ease of access through streamlined eligibility verification using existing enrollment in other means-tested programs.

The bill also addresses the operational costs and service obligations of the MBTA regarding its paratransit service, The RIDE, which has significantly higher per-passenger costs compared to fixed-route services. The projected annual cost to meet the increased demand from the reduced fares on The RIDE is estimated to be between $16 to $21 million, with paratransit operational costs expected to be the largest expense in the initial phase of the IERF program. The MBTA is currently analyzing data on RIDE costs and passenger demand to understand the financial implications of the fare initiative and is working on service improvements for paratransit customers. A new analyst has been hired to enhance the agency's capacity to address funding allocation issues, and future budget updates are anticipated to clarify the cost allocation of increasing paratransit expenses as part of the broader IERF program.