Transportation

Federal and state fuel taxes, combined with rising diesel prices and regional volatility, significantly increase operating costs for motorcoach companies. Buses, though fuel-efficient, travel long distances and consume large volumes of fuel, compounding the impact.

Our advocacy has secured a $0.17-per-gallon federal fuel tax credit for kerosene and undyed diesel, but many operators still face unpredictable fuel expenses. These costs are often passed on to passengers, raising fares for students, tour groups, and families.

Without relief, fuel-related expenses could significantly increase operational costs, making group travel less affordable and accessible.

Patchwork anti-idling laws—enforced at the state and municipal level—penalize necessary safety protocols unique to motorcoach operations. These laws empower third-party lawsuits and can result in fines exceeding $100,000 per violation per day.

Unlike freight trucks, motorcoaches often must idle to maintain passenger climate control, ensure driver alertness, and meet safety standards, especially in extreme weather.

These operational constraints place undue financial pressure on operators and discourage service in jurisdictions with aggressive enforcement.

As states shift transportation funding toward tolling and mileage-based systems, privately operated mass transportation services risk being left out—or penalized—by outdated funding models.

Buses contribute to infrastructure funding through fuel taxes, but increasing vehicle efficiency and electrification are reducing those revenues. Without parity, operators may face double charges—fuel taxes plus tolls—while public transit receives subsidies.

This unequal treatment raises the cost of private bus services, undercuts competitiveness, and may limit access to destinations, particularly in rural or underserved regions.

The private motorcoach industry is a cornerstone of the U.S. surface transportation system and a major  economic engine. Motorcoaches provide essential  intercity, commuter, charter, and rural service—often connecting communities without access to rail or commercial air service.

Motorcoaches move millions of passengers each year, reduce congestion by removing dozens of cars per trip, and operate with minimal direct federal subsidy. They support tourism, workforce mobility, emergency response, military movements, and major events nationwide.

As Congress reauthorizes the federal highway program, motorcoach priorities must be included to ensure equitable treatment, maximize system efficiency, and sustain one of the nation’s most cost-effective transportation modes.

The private motorcoach industry is a vital part of America’s transportation network—providing affordable, accessible travel while supporting economic growth, workforce mobility, tourism, emergency response, and military readiness.

Motorcoaches operate with minimal direct federal subsidy, reduce congestion, connect rural and underserved communities, and move millions of passengers safely and efficiently every year.

Why It Matters

Motorcoach and group travel generate economic activity that extends far beyond bus operators—driving spending at hotels, restaurants, attractions, and small businesses in every state.