LANTA’s Budget for the Coming Fiscal Year Calls for Deep Service Cuts and Fare Hikes Without New Funding

LANTA has released its draft budget for the next fiscal year beginning July 1, 2025. The proposed budget includes the largest service cuts in decades—

• 20% reduction in fixed route bus service
• 25% fare increase on fixed routes
• 25%+ fare increase on Shared Ride for Seniors

These reductions are aimed at addressing a projected annual funding deficit of $11 million—$8 million for the fixed route system and $3 million for paratransit.

Long-Term Funding Stagnation

Transit operating funds have not been adjusted since Act 44 of 2007. While Act 89 of 2013 provided capital funding, operating costs—mainly driven by wages and healthcare—have continued to outpace revenue. LANTA used COVID relief funds to cover recent gaps, but those resources have now been exhausted.

Growing Demand in the Lehigh Valley

The Lehigh Valley’s population and economy have expanded significantly:

• +50,000 residents since 2010
• +65,000 jobs (416,000 total)
• +70% increase in GDP
• 9,800 development projects reviewed since 2000
• 48 million square feet of industrial space approved since 2015

LANTA increased service by 25% since 2013, including industrial zones and enhanced bus corridors. Without increased funding, that growth is no longer sustainable.

Legislative Opportunity

Governor Josh Shapiro has proposed increasing the state sales tax allocation to transit from 4.4% to 6.15%. This would bring an estimated $7 million annually to LANTA—enough to close the current deficit on fixed route services.

Consequences of Inaction

If no new funding is approved, LANTA will be forced to:

• Eliminate entire routes
• Cut evening and weekend services
• Reduce paratransit availability to certain days and times

“Service reductions are the last thing we want to do. At LANTA, we strive to expand people’s mobility options and their access to opportunity… This level of service cuts will disrupt people’s lives and make it harder if not impossible to get to their jobs, medical appointments, grocery stores and all of their necessary trips.”
— Owen O’Neil, Executive Director

If necessary, cuts would begin in January 2026. Without new funding, further reductions could follow in 2027—up to 40% from current levels.

Read the 2026 Budget Statement

View the Draft Budget