Federal Grant Will Help Modernize MCTS Buses

MCTS bus on W. Wisconsin Avenue. Photo taken Thursday, June 4, 2026 by Graham Kilmer.

Milwaukee County was recently awarded a $13.9 million federal grant that will fund a modernization initiative across the Milwaukee County Transit System (MCTS) bus fleet.

The grant will be used to purchase new buses and install onboard traffic signal optimization equipment that helps the City of Milwaukee time traffic lights to MCTS buses and reduce travel times. Approximately $2 million will be used to update traffic signalization along S. 76th St. and W. Hampton Ave. to reduce traffic congestion.

“We need a modern transportation system that works for everyone in our community, from seniors to workers to business owners. That’s why I’m continuing to fight to bring federal dollars home and invest in public transit and county roadways,” Milwaukee County Executive David Crowley said in a statement Thursday. “I want to thank our state, local and federal partners who recognize that investing in Wisconsin’s largest economic hub doesn’t just connect communities, it helps power the state and regional economy.”

The funding comes from the Federal Transit Administration and its Congestion Mitigation and Air Quality Improvement Program (CMAQ), which funds public infrastructure projects that reduce emissions and air pollution. MCTS is a frequent recipient of CMAQ awards, and Milwaukee County Parks has also managed to secure CMAQ funding in the past to build bike and pedestrian trails.

The new grant will allow the Milwaukee County Department of Transportation (MCDOT), which oversees the quasi-governmental MCTS, to expand its traffic signal optimization program. In 2025, MCDOT began the initiative with an $8 million federal grant, focusing on 24 intersections along N. Water St. and N. 6th St.

Buses are fitted with transponders that feed data into the city’s traffic management system, which times nearby traffic lights to reduce the amount of time buses sit at red lights and speed up travel times for transit riders. MCTS plans to eventually equip its entire fleet with the transponders. The new grant will add them to 77 buses, according to a statement from the county executive’s office. The system is on track to equip 75% of its fleet by 2030.

The additional funding for bus replacements will also help MCTS stabilize its bus fleet for the next six to seven years. In recent years, MCTS has found itself behind on bus replacements as it has used federal funding that could have been used for bus purchases to maintain service levels.

Since last year, MCTS has faced significant annual budget gaps, largely caused by stagnant state transit funding that has not kept pace with inflation. The system cut service by $9.3 million in 2026. It faces a projected $15.7 million budget deficit in 2027. MCTS, under President and CEO Steve Fuentes, is proposing a 25% service cut in 2027 to stabilize service at a budget level that can be maintained without additional revenue. At the same time, the system is planning to redesign the bus network.