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Fares, costs and subsidies per transit trip have risen much faster than inflation during the past 25 years throughout the United States. At the same time, transit ridership per capita has continued to fall and automobile ownership per capita has continued to rise. As a result, U.S. metropolitan areas are losing their battle against traffic congestion. It is becoming increasingly clear that major changes are needed in the way public transportation services are delivered, financed and managed, particularly in fast-growing suburban areas. The State of Hawaii, with financial support from both the U.S. Departments of Energy and Transportation, pioneered in studies of ways that IVHS-technologies can be used to develop low-cost, door-to-door transportation services.