High Gas Prices, Fewer Options: Michigan Transit Service Cuts Possible Under State Budget

High gas prices at a Detroit gas station during 2026

May 14, 2026 – LANSING, MI — Our Move MI coalitionof more than 30 organizations representing riders, workers, seniors, people with disabilities, environmental advocates, and transit providers is calling on state lawmakers to strengthen FY 2027 public transit funding to prevent service cuts across Michigan.

The coalition released a joint letter today to members of the Michigan Legislature and Governor Whitmer, urging lawmakers to increase Local Bus Operating (LBO) funding to at least $330 million—a level coalition members say is achievable with existing transportation revenues and necessary to keep transit services running as costs rise.

What Coalition Members Are Saying

“If the state’s investments in public transit fail to keep up with rising costs and growing needs, transit agencies may be forced to cut routes, shorten hours, and turn away people who need rides.”
— Megan Owens, Executive Director, Transportation Riders United

“By law and prior practice, our state support used to cover half or more of local transit expenses. That support now amounts to less than one‑third, and that gap is showing up in the services and the strain.  With agency services already stretched, now is not the time for our state budget to underfund critical local transit services. ”
— John Dulmes, Executive Director, Michigan Public Transit Association

“Public transportation is not a luxury — it is a necessity for thousands of Michigan residents every single day.”
— Melvin Turnbull, President & Business Agent, Amalgamed Transit Union Local 836

“We provide services in areas where Uber and Lyft do not exist, so without us, many people would not be able to get out of their homes to medical appointments, work, or groceries…I don’t want to be the one to tell riders, ‘I’m sorry, we can’t take you today, because we don’t have the money to pay for the gas.’”
— Kim Viener, Executive Director, Western Oakland Transportation Authority (WOTA)

“When state budgets don’t keep up with the cost of operating transit agencies, those decisions ripple through our environment, our economy, and the long‑term strength of our communities.”
— Ross Gavin, Policy Director, Michigan Environmental Council

The coalition warns that House budget proposals that limit LBO funding to $290 million would result in reduced reimbursement rates and likely service cuts beginning this fall, even as gas prices and household transportation costs remain high.

“Michigan can fund new transportation programs and maintain transit service at the same time,” the letter states. “The question is whether lawmakers will prioritize keeping buses on the road for the people who rely on them every day.”

We need to find public transit, not cut it.

We urge state leaders to strengthen the FY 2027 transportation budget to prevent public transit service cuts and protect affordable mobility statewide. It is troubling that some budget proposals move Michigan backward on public transit—despite significant new transportation revenues and rising costs facing Michigan families. Without Increased Funding, Transit Service Cuts Are Likely!

We urge the Legislature to strengthen Local Bus Operating funding to at least $330 million,  which is achievable with existing restricted revenues, to support current services and address growing community needs. As gas prices and car ownership costs rise, more Michiganders are turning to transit. It is one of the most effective tools the state has to keep transportation affordable—but only if it is funded adequately.

Please, join the plethora of undersigned organizations and tell your legislators: We need to fund public transit!

Watch the recording of the press conference

And view the letter below