Local Bus Operating Assistance Program
Forecasted
Local Bus Operating Assistance Program supports Michigan public transit agencies by funding operating and administrative costs, including passenger ferries, to sustain service in urbanized and rural communities.
Funder: Michigan Department of Transportation
Due Dates (Anticipated): February 2027 (application due)
Funding Amounts: Up to 60% of eligible expenses in smaller areas; up to 50% in urbanized areas over 100,000
Summary: State assistance helps eligible Michigan public transit agencies cover operating and administrative costs, including passenger ferry operations.
Key Information: Applicants must be eligible authorities or governmental agencies as defined in Act 51.
Description
The Michigan Department of Transportation’s Office of Passenger Transportation administers the Local Bus Operating Assistance Program, also called the State Operating Assistance Program or Formula program. It provides state operating and administrative assistance for public transportation in Michigan’s urbanized and rural areas, including ferry service through the Marine Passenger Program.
The program helps sustain passenger transportation across communities of different sizes. It is supported by Michigan’s Comprehensive Transportation Fund, which draws on portions of state motor fuel taxes, vehicle registration fees, and sales taxes on automobiles and related products. Funds are distributed to eligible public transit agencies under Act 51 of 1951, as amended, and the R&E Manual for the current application year.
