LANSING, Mich — The Capital Area Transportation Authority (CATA) board has approved a $70.8 million operating budget for 2026, but cuts to federal transportation funding have officials saving for the future
- CATA approved a $70.8 million operating budget for 2026
- CEO Bradley Funkhouser says CATA will use its savings to avoid service cuts while seeking new partnerships and cost-saving measures.
- Riders like Daniel Black rely heavily on public transit, expressing concern that any cuts would severely impact their daily lives.
- Maintaining current service levels is a top priority, and CATA officials are actively working on a long-term financial plan to keep buses running.
WATCH: Fewer dollars, same commitment: CATA commits to keeping buses running despite cuts to federal funding
“We hereby approve the 2025–2026 CATA budget,” board members declared during last week’s public meeting.
While the budget approval is a necessary step forward, the board is already bracing for challenges ahead. The expected revenues for 2026 is nearly $14 million less than last year’s, a drop that CEO Bradley T. Funkhouser attributes to reductions in grant funding at the federal level.
“As things get more expensive and the amount of money you have to pay for them goes down, you have a big gap,” Funkhouser said. “So we need to fill that gap with our savings account now so we don’t cut service.”
For Lansing residents who rely on public transportation, like Daniel Black, even the possibility of service cuts is deeply concerning.
“I use it to get to doctor appointments, grocery shopping, pharmacy pickup, visiting friends…” Black shared. “Without it, I’d be homebound or emptying my wallet on Ubers.”
Despite the financial shortfall, Funkhouser emphasized that cutting services is not currently on the table. Instead, CATA is exploring cost-saving strategies and new partnerships to stretch its existing resources.
“We’re going to be looking at additional partnerships and additional ways to cut costs,” he said. “We will absolutely stay committed to keeping services on the road — for now.”
CATA board members say developing a sustainable financial plan a main priority for the coming year. With pressure mounting, officials are focused on ensuring that public transportation continues to meet the needs of Lansing residents.
“We’re putting our best foot forward and investing wisely in the community,” Funkhouser said.
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