FTA finds transit agencies violated charter rules in two cases

The Federal Transit Administration ruled that two public transit agencies violated federal charter service regulations in separate cases involving transportation for a college baseball team and the 2025 PGA Championship.

The United Motorcoach Association filed one complaint on behalf of Budget Charters Inc., of Adah, Pennsylvania. Sunway Charters, of Charlotte, North Carolina, filed the other against the Charlotte Area Transit System.

Both companies are registered with the FTA as charter service providers.

Failure to notify

In an Oct. 29 ruling, the FTA found that Potomac Valley Transit Authority violated the agency’s charter service rule by transporting Potomac State College’s baseball team.

The college had contracted with Budget Charters to transport the team to away games. After the athletic director canceled one of those charters, Budget Charters management photographed the transit authority transporting the team to a nearby college.

In response to the complaint, the transit authority acknowledged providing the service, refunded the college’s payment, and told the FTA it had updated its internal charter service policy.

UMA’s Ken Presley said the transit authority failed to notify Budget Charters about the proposed trip to determine whether a registered provider was interested in providing the service.

“Everything starts with being a registered charter provider with FTA and keeping the registration current,” Presley said.

Regular or premium fares?

In a separate decision reported Sept. 21, the FTA’s Office of Chief Counsel found that the Charlotte Area Transit System violated charter service regulations while providing shuttles for the 2025 PGA Championship.

The tournament took place May 12-18, 2025, at Quail Hollow Club in Charlotte. Trolleys Inc., doing business as Sunway Charters, filed the complaint.

Ken Presley The transit system denied violating the rule and sought dismissal of the complaint. It argued that modifying an existing transit route and charging a standard fare collected by the PGA allowed it to provide the service without violating charter regulations.

The case turned in part on the payment arrangement.

The transit system projected 66,820 passenger trips and received $147,003 from the PGA, which it characterized as payment at the regular fare. Inclement weather reduced actual ridership to 38,232 passenger trips.

Because the transit system kept the full payment despite providing fewer trips, the FTA determined that the resulting fare constituted a “premium fare,” putting the transit system in violation of the rule.

The FTA directed the transit system to refund $62,893.60 to the PGA, representing the payment above the amount due for rides provided at the regular fare. The decision noted that the service might not have violated the rule if ridership had met projections or the transit system had adjusted the payment to reflect actual ridership.

Presley said the case raised concerns about publicly subsidized transit agencies competing for business traditionally handled by private charter companies.

“I recall private-sector operators providing transportation for this event for many years,” Presley said. “It is concerning that a publicly subsidized agency could use taxpayer-supported resources to pursue service traditionally provided by private charter operators.”

FTA finds transit agencies violated charter rules in two cases

Comments