"In practice, free transit fares has led to varied outcomes. Several smaller U.S. cities currently offer them, including ski centers such as Vail, Colorado, and university towns such as Chapel Hill, North Carolina. Typically, they’ve experienced strong ridership growth. The largest U.S. city to have experimented with it was Austin, Texas. But when the Texas capital briefly went fare-free from 1989 to 1990, it saw “dramatic rates of vandalism, graffiti, and rowdiness” and escalating “vehicle maintenance and security costs” due to repairs from passenger abuse, according to a 2002 review of the program."
Kansas City, Missouri, made national headlines last week when its city council voted to make bus rides free, becoming the first major metropolis in the U.S. to provide no-fare public transit starting next year. The cost to the city will be $9 million, which is roughly what the Kansas City Area Transportation Authority brings in annually from the current $1.50 bus fares and $50 monthly passes.