Voucher Models for Rural Transportation

Voucher models, sometimes called “taxi vouchers,” use tickets or coupons from a sponsoring agency that eligible riders can offer to participating transportation providers in exchange for a ride. The sponsoring agency is responsible for forming partnerships with transportation providers who will accept the tickets or coupons. Transportation providers may consist of dial-a-ride services, taxi and on-demand services, agency vans, or volunteer drivers. Voucher programs subsidize the cost of transportation for riders and incentivize transportation providers to participate in the local transportation network. Eligibility for vouchers is determined by the sponsoring agency or county. Eligibility criteria may include people who cannot operate a personal vehicle because of disability, people who cannot afford a taxi or ride-hailing service, or people who do not live on a bus route.

Voucher systems may vary from one to another. Some programs may offer free rides, while others may offer reduced cost rides for customers. For example, some programs may allow riders to purchase $25 worth of vouchers at a cost of $10. After the passenger uses the voucher, the transportation provider is reimbursed by the funding sponsor. Some programs may allow the customer to choose the transportation provider while other programs may require the use of a specific provider. Passengers can use the vouchers to travel to medical appointments or the grocery store, and access social services or other programs. Using local transportation services also benefits the local economy by providing business to transit companies.

Examples of Voucher Models

Living Independence Network Corporation (LINC) in Twin Falls, Idaho is a voucher-based program that offers services with approved transportation providers. This nonprofit transportation program was established in 1997, and rides can be used for multiple purposes, including visiting friends and family, or making trips to the grocery store. LINC is funded using Section 5310 program funds.
Wyoming Independent Living's Transportation Check Program allows mileage or fee reimbursements for transportation providers who give rides to residents with disabilities. The Transportation Check Program is available to residents of several rural counties in eastern Wyoming.

Considerations for Implementation

Voucher programs allow for a degree of flexibility for riders. This model is an appealing option for many individuals because they can choose transportation services that meet their needs and preferences. In some instances, friends, family, or other community members may be able to receive reimbursement for trips. The voucher model benefits multiple partners because it makes existing transportation services more affordable and helps to sustain them.

Community partnerships play a key role in voucher programs. Partners are responsible for subsidizing the vouchers and must identify and obtain funding. Rural communities may have to work with partners to establish a group of transportation providers, market the program, and estimate user demand for the program.

The success of voucher programs depends on available transportation services within a community. The expansion of taxi services and other ride-hailing services in communities can greatly improve the effectiveness of voucher models. Taxis can be a valuable mode of transit in rural areas by supplementing days and hours of available public transportation options.

Voucher programs may also involve a volunteer component. Volunteer drivers may provide the only form of transportation in some rural communities.

Program Clearinghouse Examples

Resources to Learn More

Transportation Update: Where We've Gone and What We've Learned
Document
Chapter 7 of this report presents an overview of rural transportation issues and a discussion of effective strategies providing transportation services in rural areas.
Organization(s): National Council on Disability
Date: 5/2015

Toolkit for Operating a Rural Transportation Voucher Program
Document
Offers detailed information on developing a transportation voucher program in a rural community. Covers the roles of key players, creating partnerships, goal setting, funding options, policy development, contracting providers, and program management.
Organization(s): Association of Programs for Rural Independent Living
Date: 8/2017