MCTS Gets $14.7 Million Federal Grant for Equipment, Infrastructure

Old buses at MCTS maintenance facility, 1525 W. Vine St. Photo taken July 18, 2025 by Graham Kilmer.

The Milwaukee County Transit System (MCTS) has been awarded a $14.7 million grant to replace aging equipment and infrastructure.

The funding comes from the U.S. Department of Transportation‘s BUILD (Better Utilizing Investments to Leverage Development) grant program. The funding will be used to replace critical fuel and maintenance infrastructure and comes as the system struggles to fund its operations, often using federal formula funding for infrastructure projects to keep buses on the road.

“Strategic capital investments are essential to building a sustainable future for our transit system. That’s why I remain committed to working with partners at every level to bring critical federal investments home to Milwaukee County,” County Executive David Crowley said in a statement. “I’m grateful to our federal partners for their support, which will strengthen our ability to maintain a safe, reliable transit system. These investments mean fewer service disruptions, which will help businesses whose employees rely on transit, reduce congestion for commuters, and ensure families and students can depend on transit to get to work, school, and medical appointments.”

U.S. Sen. Tammy Baldwin helped secure the funding for Milwaukee County, according to a statement from Crowley’s office.

“Thousands of Wisconsinites across Milwaukee County rely on public transit to get to work, school and stay connected with their community,” Baldwin said in a statement. “I was proud to support this investment to modernize Milwaukee County’s transit system, keep Wisconsinites safe and save taxpayers money.”

The grant funds will go to the Milwaukee County Department of Transportation (MCDOT), which controls the transit system’s funding. The money will be used to replace six underground fuel tanks, install six modern bus lifts and upgrade lighting at maintenance facilities to improve energy efficiency. Work will begin in 2027.

“This funding will improve reliability for our riders and help ensure a more sustainable and resilient transit system for our entire community,” MCTS President and CEO Steve Fuentes said.

MCTS has entered a period of financial crisis. In 2026, following a midyear budget deficit, the system spent down federal stimulus funds released during the pandemic ahead of schedule. It cut back service last fall and implemented the first major service cuts since the onset of the pandemic in the 2026 budget.

The system faces another $15.6 million budget deficit in 2027. Milwaukee County supervisors will weigh whether to raise the wheel tax, called the Vehicle Registration Fee, this year to close the system’s budget gaps in the short term. The system has long been so hard up for operating funds that it has been using federal funding grants for infrastructure expenses — like maintenance facility upgrades and new bus purchases — to maintain service levels.

Private transit consultants from Jarrett Walker + Associates recently began working on a redesign of the system. They will meet with county supervisors for the first time during a public meeting in July.

“Transit is a critical part of Southeastern Wisconsin’s transportation system, not only for bus riders but for everyone who uses our transportation network,” said MCDOT Executive Director Joe Lamers. “By investing in the critical infrastructure that keeps our transit system running, we are investing in the regional transportation network that powers our economy.”