MCTS Wins Grants For New Buses
$8 million in federal-state funds will also pay for traffic signal optimization projects on two key streets.

MCTS bus on N. Van Buren St. Photo by Dave Reid.
Milwaukee County has secured nearly $8 million in federal funding for new bus purchases and other transit related projects.
The majority of the funding, $5.8 million, will be used to purchase Gillig clean-diesel buses. Last year, Milwaukee County Transit System (MCTS) officials reported the system needed to purchase 150 new buses by 2029 to maintain the fleet.
“The number of buses that will be replaced will be dependent on the cost of buses at the time of purchase,” Nicole Armendariz, a spokesperson for the Milwaukee County Department of Transportation (MCDOT), told Urban Milwaukee.
The clean-diesel systems will provide quieter, cleaner buses that use 40% less fuel than a traditional diesel bus, according to MCDOT.
The funding comes through the state-run Congestion Mitigation and Air Quality (CMAQ) grant program. MCTS has successfully applied for CMAQ funding in the past. Milwaukee County Parks has also taken advantage of the grant program, using funds to expand the Oak Leaf Trail.
The grants are going to MCDOT, which oversees MCTS, itself a quasi-governmental agency that operates the transit system for the county. The county also received $1.1 million for a traffic signal optimization project and $1 million for a public outreach campaign intended to increase ridership.
The funds for bus purchases come at a time when the transit system needs all the financial help it can get. The system is running an operating budget deficit in 2025 and plans to both cut service and raise fares in 2026. The overarching cause is the system’s structural budget deficit: a persistent imbalance between how much revenue MCTS receives and what the expenses are to run the existing system.
The structural deficit is being revealed as federal COVID-19 stimulus funding runs out. Other federal funds have also papered over the system’s operating imbalance, and made it difficult to purchase new buses. For years, MCTS has taken federal funds intended for capital investments, like buses, and plugged it into gaps in operating revenue. In 2022, the system hit a low point for the fleet with 318 buses.
Since then, numbers have improved, and county officials are making an effort at the policy level to ensure the county prioritizes bus purchases.
CMAQ grants require a 20% local match. So the county will need to match the state award with approximately $1.2 million in local funds. That’s roughly the price of two new buses, which cost the county approximately $600,000 each.
“Investments in public transportation are needed now more than ever in Milwaukee County. I want to thank the Wisconsin Department of Transportation for delivering this funding that will support Wisconsin’s largest transit system,” Milwaukee County Executive David Crowley said in a statement. “The ability to upgrade our fleet, optimize travel times, and educate new riders is crucial to growing our local economy by getting people to work, school, and medical appointments.”
Traffic Signal Optimization
MCTS plans to work with the City of Milwaukee to optimize traffic signals for public transportation along N. Water Street and N. 6th Street.
Buses will be fitted with transponders, which will feed location data to the city, so that lights at 24 intersections on those streets can be timed to create faster travel for public buses. Though, the goal is to do this without disrupting the overall flow of traffic.
“When buses and signals are fitted for traffic signal optimization, a solid green light may hold for longer to allow a nearby bus to pass through. If a bus is too far away, the signal will proceed through its normal phases (amber, red),” Armendariz told Urban Milwaukee.
The project should reduce wait times for public transit riders catching buses along those streets, according to MCDOT. The GreenLine and routes 15, 18 and 57 travel along N. Water Street. Running along N. 6th Street are routes 12, 19, 31, 34, 40U, 80 and 81 and, briefly, the BlueLine.
The transit system’s Connect 1 bus rapid transit route also crosses both streets running east and west.
UPDATE: The list of routes running on the two streets has been updated.
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