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This paper introduces a bilevel programming model for optimizing transit network departure frequency. In the upper-level model, user satisfaction is reflected by considering congestion effects in the cost function. The lower-level assignment model simulates passenger travel behavior more realistically by incorporating congestion effects. This problem is solved by a heuristic gradient descent algorithm, where an approximation of the gradient is obtained at each iteration by using sensitivity analysis for transit equilibrium problems. The effectiveness of the proposed model and algorithm is demonstrated through two test examples, one of which involves a real-world scenario comprising over 130 transit lines. Numerical results conclusively indicate that the incorporation of congestion effects in the proposed model leads to improved transit system performance and enhanced user satisfaction. [ABSTRACT FROM AUTHOR]