The KC Streetcar is a key part of Kansas City’s public transportation network, and with the Main Street Extension and Riverfront Extension set to open in 2025 and early 2026, respectively, many are wondering how it’s funded. What pays for construction? How does the system remain fare-free?
The answer lies in a combination of local investment, federal grants and a Transportation Development District that ensures ongoing operations. Here’s a breakdown of the funding sources behind the KC Streetcar.
Operating Budget
The streetcar’s day-to-day operations are funded through the Transportation Development District (TDD), a special funding mechanism covering an area from the Missouri River to 53rd Street and from State Line Road to Campbell Street. The TDD was originally approved by voters in 2012 and allows the streetcar to remain-fare free. Revenue sources within the TDD include:
- A sales tax not to exceed 1 percent on sales within the TDD boundary
- A special tax assessment on real estate within the TDD boundary, with maximum annual rates as follows:
- Commercial Properties: 48¢ for each $100 of assessed value
- Residential Properties: 70¢ for each $100 of assessed value
- City-Owned Properties: $1.04 for each $100 of assessed value
- Tax-exempt properties (religious, educational, charitable): $0.40 per $100 of assessed value (applied only to properties valued between $300,000 and $50 million)
- Surface Pay Parking Lots: A special assessment of up to $54.75 per parking space annually.
- Sponsorships: Additional revenue is generated through advertising on the streetcars and at stops.
Capital Budget
Major construction projects, including the Main Street and Riverfront Extensions, have been funded through a combination of federal grants and local investments:
- The starter downtown line construction was funded with a mix of federal and city resources, including:
- TIGER (Transportation Investment Generating Economic Recovery) grants
- STP (Surface Transportation Program) funds
- CMAQ (Congestion Mitigation & Air Quality) funds
- Kansas City, Missouri special obligation bonds
- The Main Street Extension construction was funded by:
- $174 million from the Federal Transit Administration’s New Starts Capital Investment Grants Program
- $177.7 million in local funding (via the TDD)
- The Riverfront Extension construction was funded by:
- $35.2 million from the U.S. Department of Transportation’s BUILD (Better Utilizing Investments to Leverage Development) grant
- $25.9 million in local funding (via the TDD, KCATA and PortKC)
With a carefully structured funding model, the KC Streetcar continues to expand and serve the community, all while remaining fare-free for riders.
