By Brooke Krieger, MPA
Parking is attracting more legislative attention today than at any point in recent memory. Bills related to parking fees, enforcement practices, towing, parking requirements, and local authority are appearing with greater frequency across state legislatures. This trend is not coincidental. It is rooted in a fundamental shift in how local governments fund themselves.
For much of the past decade, cities and counties benefited from expanded federal support, most notably pandemic-era relief programs like the American Rescue Plan Act. Those funds provided short-term flexibility and helped stabilize local budgets. However, that funding is temporary. As relief sunsets and discretionary state funding tightens, local governments are once again relying more heavily on revenue sources they directly control.
Parking sits squarely in that category.
Unlike property or sales taxes, parking revenue can be adjusted incrementally. Cities can expand paid zones, extend hours, adjust rates, or improve compliance without lengthy voter approval processes. Parking is also often framed as a user-based fee tied to access, turnover, and congestion management rather than general taxation. For budget-constrained municipalities, it has become one of the most practical tools available to close operating gaps.
But as parking revenue grows, so does political attention.
Once parking programs begin generating meaningful revenue, they are no longer viewed solely as operational tools. They become pocketbook issues for constituents and attractive targets for state lawmakers seeking to regulate local practices. This is where the increase in legislation emerges. Parking now intersects with broader policy debates around affordability, consumer protection, housing, and local control.
Recent years have seen state legislation aimed at preempting local parking authority, particularly around parking minimums and development requirements. Other bills focus on fee caps, towing regulations, citation processes, and enforcement practices, often framed as consumer protection. At the same time, the expansion of digital payment systems and automated enforcement has introduced new regulatory questions around data, procurement, and compliance standards.
This pattern is not unique to parking. Other revenue-generating sectors such as short-term rentals, ride-hailing, and sports betting have followed the same trajectory. As local revenue increases and visibility grows, regulation follows.
For parking professionals, this shift requires a mindset change. Parking programs must now operate with the assumption that policy scrutiny is not an exception but a baseline condition. Transparency, clear public communication, defensible pricing rationales, and alignment with broader community goals are no longer optional. They are essential risk management tools.
As federal relief winds down and fiscal pressures persist, parking will continue to play a larger role in local budgets. With that role comes responsibility and oversight. Understanding the financial and political forces driving this legislative attention is the first step in navigating what comes next.
Brooke Krieger, MPA, is a Regional Sales Director for Arrive. Brooke can be reached at brooke.krieger@arrive.com.