The Economic Impact of Section 16 of the Urban Mass Transportation Act on Small Businesses Transporting the Elderly and Handicapped in New England

摘要

Congress declared as national policy in Section 16 of the Urban Mass Transportation Act (49 U.S.C. 1601 et seq.) that elderly and handicapped persons have the same right as other persons to utilize mass transit services. Section 16(b)(1) authorizes grants and loans to government agencies and Section 16(b)(2) only to non-profit organizations. For-profit firms are excluded from all funding assistance even though the small business sector is a principal source of transportation for mobility-impaired individuals. This study examines the impact of subsidized competition by non-profit organizations and publically-owned paratransit systems on small businesses in New England. Massachusetts and Connecticut are investigated in more detail due to their greater relative importance in the region.