Public transportation agencies across the United States are facing a financial reckoning, and the impact is rippling from small cities to major metropolitan areas. In Michigan’s capital region, the Capital Area Transportation Authority (CATA) has sounded the alarm over a looming $13.6 million deficit, while in Philadelphia, the Southeastern Pennsylvania Transportation Authority (SEPTA) is preparing for dramatic service reductions and fare hikes to counter a staggering $213 million budget shortfall. Both stories, though separated by geography, share a common thread: the end of pandemic-era funding and a troubling decline in state and federal support.
On August 11, 2025, CATA CEO Bradley T. Funkhouser addressed the Lansing City Council, laying out the agency’s financial predicament. According to WLNS, Funkhouser explained, “It is $12 million. That is a drop in state revenue of $3 million right off the top for the next year, and we’re coming to an end of the COVID money.” The $12 million loss in state and federal funding, combined with the expiration of pandemic relief, has left CATA with a significant shortfall to bridge between its 2025 and 2026 budgets.
Despite these challenges, Funkhouser has been clear: service cuts are not imminent. “Do we have areas that we can cut? Yes. Are we going to? Absolutely not,” he told 6 News, emphasizing that CATA’s savings—built up from millage money approved by voters in November 2024—are cushioning the blow. The 3.007 mills renewal, though slightly reduced due to Headlee rollbacks, ensures continued funding through 2030. This prudent planning, Funkhouser noted, was designed to “avoid cutting services,” especially vital programs like SpecTran and Redi-Ride, which serve disabled and elderly residents.
However, the reprieve may be temporary. Funkhouser warned the council and the public that if funding issues persist into 2026, CATA could be forced to cut services by 10% across all jurisdictions. “A year from now, we may be making tough cuts,” he cautioned, but assured that “through the year, there’ll be plenty of opportunities for the public to weigh in on that. There are no surprises there.”
To foster transparency and public engagement, CATA has scheduled a hearing for its 2026 proposed budget at 4 p.m. on August 20, 2025, at the Lansing Center. For those unable to attend, the agency will accept written comments to be read into the record. Funkhouser is urging the community to participate, underscoring the seriousness of the situation: “Things are starting to get tight, and the revenue is dropping. This is not excessive expenditures, this is that the money supporting it are dropping, and we’ve got to figure out better ways and more efficiencies to keep this going, and, you know what, we will.”
Meanwhile, the funding crunch isn’t unique to Lansing. Just last week, the Jackson Area Transportation Authority (JATA) announced plans to cut routes, citing the lowest level of state support in its operational history. On the national stage, the crisis is even more acute. In Philadelphia, SEPTA is on the brink of implementing one of the largest service reductions in its history.
According to the Bucks County Courier Times, on August 14, 2025, SEPTA officials revealed a multi-phase plan to address their $213 million deficit. Beginning August 24, SEPTA will eliminate 32 bus routes, shorten 16 others, and slash trips on all rail services, including the end of special services like Sports Express. The pain doesn’t stop there: fare increases of 21.5% will hit riders starting September 1, bumping bus and metro fares from $2.50 to $2.90 and increasing regional rail fares by the same percentage.
Come January 1, 2026, the final wave of cuts will arrive. Five regional rail lines—including the Trenton line, which serves five stops in Bucks County—will be eliminated, along with 18 more bus routes and one metro line. A 9 p.m. curfew will be imposed on all remaining metro and regional rail services. Bus routes 127 and 128, vital lifelines for communities in Lower Bucks County, are also slated for elimination.
SEPTA’s woes are rooted in the same causes plaguing CATA: the end of federal COVID relief and rising costs for fuel, power, and supplies. “We have worked hard as an Authority to prevent this day from coming because we understand the impact it will have on our customers and the communities we serve,” said SEPTA Board Chair Kenneth E. Lawrence Jr. in an official release. “To be clear, this does not have to happen—if state lawmakers can reach an agreement to deliver sufficient, new funding for public transit.”
Pennsylvania Governor Josh Shapiro’s 2025-2026 budget proposal aims to address the crisis by increasing mass transit funds by $292.5 million, raising the percentage of Sales and Use Tax receipts allocated to the Public Transportation Trust Fund. However, as negotiations drag on, uncertainty remains. SEPTA is legally required to pass a balanced operating budget before July 1 each year, leaving little room for delay or indecision.
The implications of these cuts extend far beyond inconvenience for daily commuters. In both regions, public transit is a lifeline for working families, seniors, students, and people with disabilities. Eliminating routes and raising fares risks deepening inequality and isolating vulnerable populations. In Bucks County, for instance, the loss of the Trenton rail line and local bus routes threatens to sever crucial connections between suburban communities and Philadelphia’s economic and cultural hubs.
Transit agencies aren’t alone in their struggles. Across the country, urban and regional systems—from Chicago to Kansas City to Pittsburgh—are grappling with what Funkhouser described as “a financial crisis that we haven’t seen before.” The end of pandemic relief exposed structural weaknesses in transit funding, forcing agencies to confront difficult choices: raise fares, cut service, or hope for a political solution.
In Lansing, the immediate future looks stable, thanks to foresight and community support. But as Funkhouser warned, “We were anticipating that there was going to be this shortfall, and so we saved a lot of money back so that we did not have to cut services.” Still, he acknowledged that the agency’s reserves won’t last forever. Delta Township’s decision to put a public transit millage on the November 2025 ballot underscores the high stakes; the outcome will determine whether operating agreements with CATA continue.
For Philadelphia and its suburbs, the clock is ticking. Without swift action from state lawmakers, the cuts will proceed as scheduled. SEPTA has made clear that the ball is in the legislature’s court. “This is a vote none of us wanted to take,” Lawrence said, reflecting the agency’s reluctance to implement such drastic changes.
As the public weighs in at hearings and ballot boxes, one thing is clear: the future of public transit hangs in the balance, shaped by decisions made in city halls, state capitols, and, ultimately, by the communities who rely on these essential services every day.