103rd Legislature, March-May 2026: Carpool Lot Access, New Budget Proposals
STARS in Saginaw serves an MDOT-operated Park & Ride lot in Bridgeport to provide motorists with convenient access to the rest of their fixed route system.
Local Bus Operations (LBO) Funding
The current FY 2025-26 budget allocated $271.6M for LBO funding . From this baseline, the Governor and Senate proposed a $43.4M increase for FY 2026-27 while the House proposed only a $18.4M increase. All previously awarded ARPA dollars have been obligated for expenditure prior to the end of 2026 with no additional funds available; as such, these are sustained increases sourced from the Comprehensive Transportation Fund (state transportation dollars).
| Proposed Budget | FY 26-27 Executive | FY 26-27 House | FY 26-27 Senate |
|---|---|---|---|
| LBO Increase (Sustained) | +$43.4M | +$18.4M | +$43.4M |
| Total | $315M | $290M | $315M |
The target “hold harmless” figure for LBO this year per TRU and the Michigan Public Transit Association , given recent expansion efforts at various agencies across the state and continuously rising operational costs, is $330M.
Senate Proposal
The Senate proposed budget, SB 878 (S-1), cleared the chamber on party lines on Wednesday, April 29th.
Senate Fiscal Agency analysis document
House Proposal
The House proposed budget, HB 5619 (H-1), passed on Wednesday, April 22nd.
House Fiscal Agency analysis document
While the Senate proposal is the objectively better budget, both fall short of the funding transit agencies in Michigan, especially rural providers, need to keep the lights on.
The big question: With less than two months to go before June 30th, will a budget deal be negotiated in timely fashion? This time around, my money is on yes. We’re entering campaign season, and our electeds in Lansing all but surely plan to hit the highways back to their districts the second this conference budget bill is enrolled.
The Michigan primary election is on Tuesday, August 4th, just under 90 days away. All House and Senate seats are up for grabs.
Passenger Transportation (Intercity Bus)
The Senate proposal matches the Executive budget’s $589,100 proposed increase for Passenger Transportation Services to aid buildout of projects funded in last year’s budget. The House instead reduces this contribution to the Comprehensive Transportation Fund by $1.7 million.
MDOT and Indian Trails are in talks of spinning up a new, all-day intercity service connecting Detroit and Grand Rapids as soon as this year. That’s right: I might get my bus back !
The Executive and Senate proposals would support this comparatively cheap yet no less transformational service. The House proposal jeopardizes it.
MDOT Carpool Lot Access
On Tuesday, April 28th, House Bill 5726 was heard in the House Committee on Transportation and Infrastructure . This is a near word-for-word introduction of HB 5969 from the 2023-24 legislative session which died on the House floor. I’ve discussed this legislation in a prior post .
SMART and the MPTA gave testimony in support of the bill. The recording is available on House TV (starts at 21:54).
HB 5726 is a common-sense solution that helps Michigan make better use of existing public infrastructure by clarifying that MDOT park-and-ride lots may be used as intermodal transfer points for public transit. These facilities are strategically located along major corridors and near job centers, making them ideal locations for express, commuter, and regional transit services—without the expense of new construction.
— John Dulmes, Executive Director of the Michigan Public Transit Association
HB 5726 was reported favorably from committee on Tuesday, May 12th and is awaiting third reading on the House floor.
Special disclaimer for this one: I provided several of the photos and graphics which were presented during testimony in support of this bill, some of which have previously appeared on this blog.