While the state’s largest transit agency has found a funding source to keep its services intact in and around Philadelphia, the near future is still murky for bus and van service in the Lehigh Valley.
Last week, SEPTA and Pittsburgh Rapid Transit both received permission from Gov. Josh Shapiro’s administration to tap funds allocated for capital projects for operating expenses instead, to preserve existing service with fare increases.
Both agencies were forced to make the move as the state Legislature is unable to agree on a new budget that includes transit funding.
Meanwhile, LANTA Executive Director Owen O’Neil said Monday that it has not yet submitted a similar request.
“We have reached out to PennDOT to discuss what options are available to LANTA,” O’Neil told The Morning Call. “In the meantime, we are continuing to prepare for all scenarios, which include a significant service reduction in January without any new funding.”
In May, LANTA released a draft budget for the 2026 fiscal year, which starts July 1, that doesn’t include any extra money from the state. It instead includes a 20% service cut, a 25% fare increase on fixed routes and a 25% fare increase on shared ride services for seniors.
It also includes an unfunded deficit of approximately $8 million on the bus system and an additional $3 million for shared ride services.
Cuts could include half of service after 7 p.m. daily, half of Saturday service and 75% of Sunday service. Service to northern destinations in the Valley, including the Slate Belt, Walnutport and Slatington, could be eliminated. Any cuts would begin in January.
The 2026 LANTA budget includes an operating cost of $66.8 million, a $2.8 million increase from 2025. Government subsidies make up a lot of that money, including $9.5 million from the federal government, $36.8 million from the state and $1.4 million from local governments.
LANTA anticipates revenue of more than $3.5 million from individual fares. About 4 million passengers use LANTA annually. Other revenue streams include such things as advertising on buses.
Finding an alternative funding source became necessary as the Democratic-run House of Representatives, the Republican-run Senate and Shapiro failed to come to an agreement on funding for mass transit — particularly SEPTA — in the 2025-26 budget, which is still being negotiated months past the June 30 deadline.
Shapiro last week directed state Transportation Secretary Mike Carroll to approve SEPTA’s request to use $394 million in capital assistance funds to stave off service cuts and resume services that were cut before the request was sent.
“This is not the long-term funding solution we need to address our $213 million budget deficit,” SEPTA General Manager Scott A. Sauer said. “But over the last two weeks, we have seen the devastating effects of the service cuts on our customers. Our riders deserve better, and they deserve stability.”
Morning Call reporter Evan Jones can be reached at ejones@mcall.com.
