Rep. Steil Calls For Greater Federal Oversight of MCTS

MCTS Gillig bus. Photo by taken March 19, 2025 by Graham Kilmer.

U.S. Rep. Bryan Steil wants the federal government to take action in response to fare evasion in the Milwaukee County Transit System (MCTS)

Steil, a Republican from Janesville, is requesting increased federal oversight and accountability from the U.S. Department of Transportation, and changes to Federal Transit Administration (FTA) guidance for fare collection. MCTS is the impetus for the request, but Steil is seeking changes that would affect transit agencies across the country.

The congressman represents Wisconsin’s 1st Congressional District, which includes the southern tip of Milwaukee County and communities like St. Francis, South Milwaukee, Cudahy, Oak Creek, Franklin and Hales Corners.

“Federal funds are intended to strengthen and sustain public transportation, not to compensate for avoidable revenue shortfalls caused by lax fare enforcement,” Steil wrote in a Sept. 6 letter to USDOT Sec. Sean Duffy.

Steil asked the secretary to have USDOT strengthen financial oversight of local transit agencies; to develop benchmarks for fare collection, among other things, as a condition of continued federal funding; and to “enhance transparency” so taxpayers can see “how federal funds interact with local revenue sources.”

Steil also sent a letter to FTA Administrator Marcus Molinaro seeking changes to FTA rules “to clarify that improved safety standards should not be interpreted as ceasing fare collection.”

Fare disputes are the most common cause of conflict between bus operators and passengers in Milwaukee and across the country, according to local and national data. In 2022, as a safety measure, MCTS implemented a policy directing bus operators not to ask for fares.

MCTS faces a projected $9.7 million budget shortfall for 2025. The system told county board supervisors in June that fare evasion was costing millions in passenger revenue. It recently estimated one in three passengers are not paying a fare, costing the system an estimated $9 million in revenue.

The Amalgamated Transit Union Local 998 (ATU) has urged MCTS officials to take action on fare evasion in recent years. The union has consistently pushed for greater enforcement from security personnel.

MCTS has developed a list of strategies to try and address the issues, and has begun implementing the cost neutral ideas. But the system may need to invest resources into other strategies that result in greater fare compliance. MCTS has estimated it could cost approximately $1.1 million for a targeted fare enforcement operation using the system’s security.

Steil has not discussed the issue with MCTS or Milwaukee County Department of Transportation (MCDOT) officials.

“Neither MCDOT nor MCTS leadership have received any outreach from USDOT, FTA, or Congressman Steil’s office in relation to either of the letters,” MCDOT spokesperson Nicole Armendariz told Urban Milwaukee.

Steil’s Communications Director Michael Donatello did not to respond to questions from Urban Milwaukee, including whether the congressman would support federal funding for fare enforcement initiatives.

“MCDOT fully supports any measures that support the safety of our operators and riders, as well as the sustainability of the system,” Armendariz said. “MCDOT and MCTS will fully collaborate with the FTA on any initiatives that support the longevity of our transit system.”

Estimating the impact of fare invasion, or enforcement, is difficult, the new MCTS President CEO Steve Fuentes recently told supervisors on the county board’s Committee on Finance.

“So the acceptable level is as low as we can get it, and that’s an unknown number,” Fuentes said. “Okay, within transit, every agency deals with some level of fare evasion. It’s baked into the budget.”

That number includes riders who are not paying fares for various reasons. Some are children, some are riders that reached their fare cap, other riders are only using public transit because they can hop on for free, he said.

“It’s a very complex issue, and our goal is to get it as low as we possibly can with common sense approaches to mitigation,” he said.

It’s unlikely fare evasion could be eliminated, and reducing it will not solve the system’s longstanding structural budget deficit. When federal stimulus funds run out in 2027, the system could face a $17 million budget deficit. While declining passenger revenues are a factor, the system’s primary source of funding, state mass transit aids, have been variously frozen or reduced for most of the past decade.

Officials are already discussing what sort of system MCTS can afford to continue operating. The agency is currently planning to cut service and raise fares in 2026 to help balance the budget.