Walz’s Budget is Worrying for Public Transit

Amidst rising gas prices and an affordability crisis, and after a federal occupation that had devastating impacts on the budgets of immigrant and low-income Minnesotans, we need investments in a transportation system that connects us and makes our lives more affordable—not cuts to an essential public good. Yet, Governor Walz is proposing to cut $41.7 million from public transit operating funds for 2026-29. 

A $41 Million Cut Now, A Bigger Cut Later?

After decades of underinvestment in public transit, Minnesota is finally on track to build the affordable, equitable transit system that Minnesotans deserve. In 2023, thanks to the relentless efforts of community and legislative advocates, we made historic progress in securing long-term dedicated funding for public transit and passing ambitious and necessary state policy to reduce greenhouse gas emissions from transportation to protect our climate and health. 

But now, our elected leaders are on the precipice of compromising our investments in the high-quality service transit riders need and reverting back to a cash-strapped transit system. Last year, state lawmakers cut over $108 million in public transit funding—while promising funds would be restored in later years. This year, Governor Walz is proposing the opposite of restoration in his supplemental budget proposal. 

Governor Walz’s proposal cuts $1.751 million from public transit funding in 2026-27, cuts $40.028 million in 2028-29, and suggests that the Metropolitan Council “rely on other sources of funding for transit operations, such as the regional transportation sales tax or reserves.” 

The $41.7 million cut signals a worrying return to underfunding public transit and delaying necessary service expansion. The recommendation that the Metropolitan Council supplement operating funds with the metro area sales tax signals a possible shift toward eliminating state general fund support for public transit operations entirely. 

The metro area sales tax funding, secured by Move Minnesota and allies in 2023, was intended to both close a projected $150 million annual operating shortfall for Metro Transit and finally improve and expand Twin Cities transit service. This funding is critical for long-overdue improvements to local bus service and bus rapid transit routes. Our growing metro community, which has dealt with sluggish service and delayed projects for years, is counting on these improvements to bring fast and frequent transit to the Twin Cities. 

Governor Walz’s proposed cut to public transit operating funds would force the Metropolitan Council to shift money from the metro area sales tax fund to sustain existing service—which would stop or delay these critical service upgrades. Taking this approach year after year chips away at the promise of transformational investment for our region and undermines transit and climate progress with each new cut.

The Governor’s budget proposal for public transit is also strangely out of step with his stated emphasis on lowering costs for the people of Minnesota. In a recent press release about his budget recommendations, Governor Walz is quoted reinforcing the importance of affordability, saying, “As families see higher prices and more economic uncertainty, we’re proposing legislation to make everything from child care, to housing, to property taxes more affordable for middle class families.” Going forward, we call on our Governor and legislative leaders at the State Capitol, who are rightly concerned with the cost of living, to take note that transportation is among the largest household expenses for many families, and that public transit is one of the most affordable options people have for getting around. Riding the bus or train is dramatically less expensive than owning and maintaining a car, but the service itself needs to be quick and well-connected to meet people’s daily needs, which is why ongoing investment is so crucial.

Especially as federal funds for public transit projects are being drastically reduced, it is important for Minnesota lawmakers to ensure the metro area sales tax funding can be used for projects that expand and improve transit service for residents. While communities across the country are requesting more than $31.9 billion in federal grants to fund capital improvement projects like bus rapid transit and light rail, the proposed 2027 federal budget allocates only $1.2 billion for these requests—a 63% decrease in funding from 2026. And, the proposed budget cuts $4.8 billion from public transit overall. This context makes it all the more essential for our state leaders to protect and expand investments in transit here at home.

Funding a Better Future for Transit

Well-funded transit benefits us all—it creates connected and prosperous communities where Minnesotans of any race, age, immigration status, or income can thrive. Defense is critical, but it’s not enough. At Move Minnesota and Move Minnesota Action, we have been defending our current investments and advocating for new policies that will fund the public transportation system Minnesotans deserve. 

We are asking lawmakers to unleash new and existing resources for public transportation in four key ways: 

• Support an equal share for public transit by dividing Motor Vehicle Sales Tax revenue 50-50 between highways and public transit—an equal split would mean an extra $113 million for transit this year and rise to an additional $379 million from 2027 to 2029
• Clarify the state’s definitions of highway purposes to include infrastructure for walking, biking, rolling, and public transit—which would unlock more than $2 billion in transportation resources each year 
• Champion $75 million in bonding to develop bus rapid transit between downtown Minneapolis and the east side of Saint Paul 
• Direct funding to combat food insecurity by requiring Metro Transit to pilot at least two new free fare routes in vulnerable corridors 

Learn more about our 2026 legislative priorities here.

What happens next? The House Transportation Committee has concluded its work for the year without agreeing on any budget recommendations. Budget decisions will be negotiated by party leaders until the legislative session ends on May 18, with the Governor’s proposal as a framework, leaving public transit funding at risk.

Get Involved!

Watch for upcoming ways to make your voice heard with us in the final weeks of this legislative session! Urging lawmakers to reject any cuts to public transit investments—including the Governor’s proposed $41 million cut to general funds for transit operations in the metro—will be a top priority. With your help, we can also continue building support for the resources and policies that will make it possible for more Minnesotans to bike, walk, roll and take public transit—and create more affordable, connected, and resilient communities for us all. 

For more state advocacy updates, sign up for emails from Move Minnesota Action (movemnaction.org).