Intercity bus transportation is integral to the nation's surface transportation network and is particularly important to smaller communities and rural areas. Intercity buses link smaller communities within a region and also link those communities to larger urban areas that offer services and opportunities otherwise not available. Intercity bus transportation also plays a critical role for smaller communities without air or passenger rail travel options―for many rural residents, intercity bus is a more affordable option than air or rail. The 1991 introduction of federal funding for intercity bus service in rural areas marked a change in policy and made intercity bus service one element in a wider approach to maintaining and improving rural public transit. Acknowledging the role of intercity buses in rural areas and realizing the industry's financial problems after deregulation, Congress included federal funding for rural intercity bus service in the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and continued the funding in f 998 with the Transportation Equity Act for the 21st Century (TEA-21).
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