How the “Benefits Pays” Model is Revolutionizing Cycling Equity and Urban Transportation Policy

Introduction: Redefining Sustainable Urban Mobility

In cities and towns across the United States, cycling is more than a mode of transportation—it’s a pathway to cleaner air, healthier communities, and economic resilience. Imagine if every bike trip not only reduced carbon emissions but also generated measurable financial returns that could be reinvested in future mobility projects. That’s the transformative potential of the Benefits Pays model.

At its core, this model redefines cycling infrastructure as a strategic, revenue-generating investment. It measures benefits like carbon reduction, healthcare savings, and equity improvements—and converts them into financial value that can be reinvested into the system.

The National Governors Association (NGA) plays a pivotal role in enabling states to pursue such ambitious, data-driven transportation strategies. By providing resources, technical assistance, and peer-learning opportunities, NGA equips governors with the tools to modernize legislation, secure financing, and align infrastructure investments with environmental and economic priorities (NGA).

What is the “Benefits Pays” Model?

The Benefits Pays model is an innovative framework that shifts the way policymakers view mobility infrastructure. Instead of treating bike lanes, trails, and cycling amenities purely as expenses, it positions them as assets that deliver quantifiable returns.

Cycling as a Measurable Investment

Cycling projects under this model track benefits such as:

Carbon savings through reduced greenhouse gas emissions
Health improvements from increased physical activity and lower chronic disease rates
Equity gains by improving access to affordable, healthy transportation

These benefits are not abstract—they’re calculated, monetized, and factored into the financial viability of future investments.

From Expense to Asset

This shift in mindset allows state and local governments to secure funding through outcome-based financing, green bonds, and public-private partnerships. For example, a city that can prove a cycling project reduces healthcare costs by $5 million annually can leverage those savings as collateral for new infrastructure loans.

The NGA’s Role in Advancing State Transportation Innovation

The National Governors Association is uniquely positioned to help states adopt the Benefits Pays model. As a bipartisan platform representing all 55 U.S. governors, NGA provides nonpartisan policy guidance, technical assistance, and opportunities for states to learn from each other.

NGA’s Policy Guidance for Governors

NGA publishes research and policy toolkits to help governors incorporate innovative financing and design principles into their transportation strategies. This includes guidance on infrastructure integration, sustainable funding, and equitable mobility access.

Technical Assistance and Knowledge Sharing

Through leadership programs, study tours, and specialized working groups, NGA connects governors with successful case studies and replicable models. This state-to-state exchange accelerates adoption of strategies like Benefits Pays, ensuring that innovations spread quickly across jurisdictions.How States Are Using the “Benefits Pays” Model

The Benefits Pays model is not a theoretical exercise—it’s already being woven into state-level transportation strategies, often under the guidance or facilitation of the National Governors Association (NGA). By embedding cycling infrastructure within broader mobility and infrastructure initiatives, states are amplifying returns and aligning investments with equity and climate goals.

Holistic Infrastructure Planning

NGA encourages governors to approach infrastructure as a coordinated system rather than a set of isolated projects. Under this approach, bike lanes are not stand-alone amenities—they are integrated with public transit networks, broadband deployment, and housing development.

For example:

A state may align a new commuter bike corridor with high-speed internet access points to foster both mobility and digital inclusion.
Urban redevelopment projects can integrate bike share stations alongside affordable housing developments, ensuring residents have low-cost, healthy transportation options.

Innovative Financing Mechanisms

One of the NGA’s most impactful contributions is introducing states to non-traditional financing methods that align perfectly with the Benefits Pays framework. These include:

Asset Recycling – Selling or leasing underused public assets to finance cycling and greenway projects.
Green Bonds – Funding infrastructure that delivers measurable environmental benefits, using the carbon savings from cycling as a qualifying metric.
Public-Private Partnerships (P3s) – Collaborating with private sector investors to build and maintain bike infrastructure in exchange for shared value from increased economic activity.

These mechanisms help states unlock capital for mobility projects that might otherwise be deprioritized.

Outdoor Recreation as an Economic Driver

The Benefits Pays model also thrives when linked to outdoor recreation economies. A standout example is Maine’s multimillion-dollar redevelopment of riverfront recreation areas, which includes new trails and whitewater amenities (NGA). By measuring the tourism revenue, public health savings, and environmental gains, Maine can reinvest those returns into future mobility and recreation projects.

Benefits of the “Benefits Pays” Model for States

When states apply the Benefits Pays model with NGA guidance, they can realize a range of measurable returns. Below is a snapshot of how the framework translates to state benefits:

CategoryBenefitExample of MeasurementEconomic ReturnsLocal job creation, increased retail revenueRetail sales growth near bike corridorsEnvironmental ImpactReduced CO₂ emissions, cleaner airTons of carbon saved annuallyPublic HealthLower rates of chronic diseaseReduced healthcare costs per capitaEquity GainsIncreased access for underserved groupsPercentage of low-income residents within ½ mile of bike routes

Economic Returns

Cycling infrastructure generates direct and indirect economic benefits. Businesses along bike routes see increased foot traffic, and construction projects create local jobs. When these gains are quantified, they become part of the reinvestment cycle.

Environmental Impact

Cycling’s carbon savings are measurable in tons of CO₂ avoided annually. These numbers can be monetized in carbon markets or leveraged to secure green funding, creating a sustainable funding loop.

Public Health Improvements

Active transportation reduces the prevalence of chronic illnesses such as diabetes and heart disease. States that document these improvements can partner with healthcare organizations to co-finance mobility initiatives.

Challenges and Solutions for State Adoption

While the Benefits Pays model offers significant advantages, states face implementation challenges. NGA’s role is often to help overcome these barriers.

Data Collection & Measurement

To make the model viable, states must invest in robust data systems like the VIDAT (Value in Data Analysis Tool) and BCCAC (Benefit-Cost and Climate Accounting Calculator). These tools measure returns across health, climate, and equity dimensions.

Equity and Accessibility

A key challenge is ensuring that investments don’t only benefit high-income, urban communities. NGA promotes inclusive design standards, equity-focused project selection, and community engagement to ensure benefits reach all residents.

FAQs About the “Benefits Pays” Model

1. What is the Benefits Pays model?

It’s an investment framework that monetizes the environmental, health, and equity benefits of cycling and reinvests them into future mobility projects.

2. How does NGA support the Benefits Pays model?

NGA provides policy guidance, technical assistance, and peer learning opportunities to help states adopt innovative funding and infrastructure strategies.

3. Can the Benefits Pays model work for small towns?

Yes. The model scales to different community sizes by adjusting benefit measurement and project scope.

4. What kind of data is needed to implement this model?

Accurate data on emissions reductions, health outcomes, and economic activity is essential for monetizing benefits.

5. Is this model limited to cycling projects?

No. While cycling is a strong fit, the model can also be applied to walking infrastructure, transit, and recreation projects.

6. How does the model promote equity?

By directing investment to underserved communities and measuring accessibility improvements, the model ensures benefits are widely shared.

Conclusion: Powering Equity Through State-Led Innovation

The Benefits Pays model is more than a funding tool—it’s a paradigm shift in how states view transportation infrastructure. With the National Governors Association guiding policy, providing technical expertise, and fostering interstate collaboration, states can transform cycling projects into self-sustaining, equity-driven investments.

When paired with NGA’s holistic planning and innovative financing strategies, the Benefits Pays model becomes a powerful catalyst for climate action, public health, and economic growth—one bike ride at a time.