Federal Transit Cuts Threaten County Bus System
Congress could slash federal transit funding, a further blow to financially struggling MCTS.
MCTS Bus. Photo by Jeramey Jannene.
Congress is proposing cuts to federal transit funding, complicating the efforts of Milwaukee County transportation officials to stabilize the declining Milwaukee County Transit System (MCTS).
Congress is considering cutting federal transit funding by between 14% and 20% over the next five years. In the House of Representatives, the Build America 250 Act would reduce federal support for transit by $16.5 billion between 2027 and 2031, according to the American Public Transit Association. In the Senate, a continuing resolution to keep the government funded is proposing a 20% cut in transit funding.
“Although state and local funding impacts are still being evaluated, a
In either case, MCTS stands to lose millions annually in federal funds, just as county transportation officials attempt to steer the system out of fiscal crisis.
MCTS cut service in 2026 to close a $9.3 million budget gap. The system faces another $15.7 million budget gap in 2027 and is on track for a $37 million shortfall by 2031 if nothing changes. While the system has lost ridership, the primary challenge to solvency is state aid falling behind inflation. If state mass transit aid — the single largest source of revenue for MCTS — had kept pace with inflation since 2010, the system would be receiving an additional $35.5 million from the state this year.
MCTS President and CEO Steve Fuentes is proposing to stabilize the system with a 25% cut in 2027, reducing operations to a level that can be sustained without the infusion of new funds. MCTS is already working with a transit consultant to redesign the bus network for long-term stability and re-expansion, if additional funding ever materializes.
“If we reduce the service by 25% over the next three years, we can afford to put out the same level of service for a three-year period without any one-time appropriations, which means we’re not threatening, or we’re not saying, that we need to cut routes,” Fuentes previously said.
But now even that might not be enough, with Congress planning anywhere from 14% to 20% in cuts. The bill in the House is a reauthorization of funding for existing programs. It cuts baseline spending last established by the Infrastructure Investment and Jobs Act, the bill passed under former President Joe Biden commonly referred to as the Bipartisan Infrastructure Law.
“Because we are already working to maintain service at current funding levels, which have remained flat for years in spite of rising costs, these challenges would be exacerbated, systemwide, if federal funding is reduced,” Lamers told Urban Milwaukee.
Lamers has recently begun enlisting the support of local advocacy groups, asking them to write to their representatives in opposition to the Build America Act. Beyond baseline cuts to federal formula funding, Congress is also considering reducing funding available through competitive grant programs.
Wisconsin’s 4th Congressional District — represented by U.S. Rep. Gwen Moore and including most of Milwaukee County — stands to lose approximately $17.7 million in federal transit funding under the proposal, according to an analysis by the Urban Institute, a nonpartisan think tank in Washington, D.C.
MCTS does not have any cushion in its budget to absorb federal funding cuts. The system has, for years, been repurposing federal funding intended for infrastructure to operate bus routes. A loss in federal funding is likely to have a direct impact on service levels for MCTS and the paratransit system, Transit Plus.
“This reduction would have a devastating impact on all riders, but especially those who rely on mobility services for their day-to-day needs,” Lamers wrote in a letter to local organizations. “We are already fighting to preserve current paratransit and mobility programs, but this potential loss of federal funding would make it challenging to maintain service for those who need it most.”
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This potential loss would have/could have been avoided had system inforced it fare requirements. Fare evasion will continue to plague MCTS for years to come.
Oh please! This canard just won’t go away. Brother Novak should look at the MAGA-diots who are starving our public infrastructure to carry water for the billionaires they serve. Cutting funds for public transit is cutting our own throats as the temperature rises.
I agree with James m novak. The previous entitled, inept culture than ran MCTS had a policy that encouraged fare evasion. Word got out and the entitled culture took, and continues to take, great advantage. It’s hardworking folks like me who are dependent on public transit for whatever reason who are paying, and will continue to pay, the price. No thanks to the County Board who did nothing IMO to try to curtail the inept previous MCTS management. I can’t see it getting better anytime soon.
Another reason for people who need transportation & don’t vote to vote. Infrastructure needs to be for everyone.
In my experience, the early voting sites are on, or near, a bus line, but not all local voting locations are. I no longer trust voting by mal and am sure to vote early.
I don’t know the losses incurred by fair evasion, but let’s start where we can and charge everyone who enters the bus! When will Milwaukee and Milwaukee County enforce laws and hold accountable those that are responsible for these problems?
It’s not that I don’t care but this ($4million?) fare evasion seems like small potatoes when compared to other fiscal problems.
Where are our priorities? We are a nation of extreme wealth inequality that cuts taxes for wealthy corporations and the elites and hands money over to the military while cutting the rest of the federal budget (like federal transit funding). To justify cutting the budget for transit funding the issue of fare evasion is brought front and center by Sean Duffy, Bryan Steil etc. (They were talking about this last year). But these same people don’t talk about the Pentagon and how they can’t pass an audit and that very little is known about where that money goes. No talks about corruption in that system as they seek a record $1.5 trillion to fight a war nobody but Israel asked for.
To put things in perspective the interest on the now $40 TRILLION debt totaled $1.2 TRILLION over the past 12 months. If that interest payment were to be divided equally among every adult in this country it equates to a hypothetical bill of about $5,000 for every US adult. (For the roughly 400,000 adults in MKE the hypothetical interest payment would total about $2 billion).
But whatever, fare evasion is the problem. This what the current lawless Trump Administration wants to do anyway, i.e., cut federal funding. In this case fare evasion is a pretext for it.
(from a JS December 2025 article)….
“Federal Transit Administrator Marc Molinaro sent letters Dec. 12 to to Milwaukee County Department of Transportation interim director John Rodgers and Milwaukee Streetcar System manager James Vineau, directing them to provide their agencies’ plans to reduce crime and fare evasion on the county’s public transit system, along with detailed documentation of funds allocated for those purposes in fiscal years 2025 and 2026”.
“Republican U.S. Rep. Bryan Steil raised the issue to federal officials, including a letter to U.S. Department of Transportation Secretary Sean Duffy urging the former Wisconsin congressman to strengthen oversight of local transit agencies as part of the federal grant review process”.
(from Bryan Steil press release in SEPT 2025),
“Today, Congressman Bryan Steil (WI-01) wrote to Department of Transportation Secretary Sean Duffy to strengthen oversight and accountability measures for local transit agencies following reports that Milwaukee County Transit System (MCTS) lost approximately $4 million in revenue in 2024 to bus evasion. Recent findings indicate MCTS riders skipped paying fares more than 8 million times in 2025, nearly one-third of all trips. MCTS received $57.24 million in federal transit funding in 2023”.
Federal and State both starve public transit, yet give handout after handout to highway expansions without a second thought. Shameless and shameful.