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chapter 23 recapitalization a man who beyond the age of 26 finds himself on a bus can count himself a failure misattributed to margaret thatcher 23.1 federalization in the united states the appropriate federal role in transit even in interstate passenger service remains a long-standing question as noted in chapter 14 transit was beginning its long post-world war ii decline from 1946. ridership was down and costs were up in the late 1950s and early 1960s private communal railroads faced the beginning of what seems to be a perpetual funding crisis while the population was more urban and suburban than rural it was still resistance to urban programs even the brookings institution argued against federal support for commuter trains president-elect kennedy supported a 100 million dollar mass transportation loan program proposed by new jersey senator harrison williams this eventually passed as a 50 million dollar loan in 25 million dollar demonstration grants not for long-term capital improve