Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In
Detroit

Detroit Transit, Already in Desperate Situation, to Lose Money to Suburbs

Detroit has perhaps the worst transit crisis in the country on its hands right now. Almost a quarter of Detroit residents do not have access to an automobile, yet transit riders have to endure an unreliable system where the bus might never show, making it harder for economically vulnerable people to access jobs.

So transit advocates cheered when the Detroit region came together late last year to establish a regional transit authority, which would replace the previous regime of separate urban and suburban transit systems. The move assured greater efficiency, a tiny bit more money, and a federal grant to begin work on a small, light-rail starter line.

But now Detroit stands to lose 22 percent of its transit funding to wealthier suburbanites. In the introductory period before the regional transit system is fully organized, Detroit's embattled transit system has been dealt another painful blow. Yesterday the news broke that metro Detroit's regional planning agency, SEMCOG, would be changing the regional funding formula, transferring $7 million out of Detroit transit and into the suburban system.

DDOT -- the city agency that manages transit in the Motor City -- is already woefully underfunded, with its revenues coming out of the city's nearly bankrupt general fund. The state last month appointed an emergency fiscal manager for the city who will have nearly unlimited leeway to cut programs.

The Southeast Michigan Council of Governments had been entrusted as the financial agent for the agencies during the transition period while the RTA gets organized. SEMCOG officials told the Detroit Free Press yesterday that the decision to reduce Detroit's share of the regional transit funding from 65 percent to 51 percent was the result of direction from the Federal Transit Administration. A spokesman for Governor Rick Snyder said SEMCOG was under instructions from the FTA to "create a formula that’s more technically based and less arbitrary.”

SEMCOG Executive Director Paul Tait said the old system was outdated and inconsistent with federal law. The changes would only be in effect for a year and would only affect capital funds.

FTA officials, meanwhile, indicated to the Free Press that the local agencies have broad authority to establish funding guidelines. The agency indicated it would not intervene.

Meanwhile, Detroit Mayor Dave Bing told the Free Press “this is the worst thing I think they could do to us.”

Stephen Hendersen of the Detroit Free Press blasted SEMCOG yesterday:

We’ve got two dysfunctional bus systems. We don’t fund either adequately or rationally.

Until the RTA gets up to speed, we just need everyone to avoid committing further cardinal errors. Don’t do dumb stuff that will make transit — already one of our region’s most embarrassing drawbacks — any worse.

Apparently, the Southeast Michigan Council of Governments didn’t get the memo.

SEMCOG was subject to a civil rights lawsuit during the early part of the last decade, when advocates for the poor filed a complaint that the agency was "heavily biased against poorer and more densely populated communities like Detroit and its inner ring of suburbs."

Unfortunately, civil rights protections for transportation aren't very strong, and federal officials, evidenced by this case, are hesitant to intervene in local matters. In not doing so, they tacitly endorse SEMCOG's methods, and that means transit-dependent people in Detroit are out of luck once again.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: Buenos Aires Will Challenge Everything You Think You Know About Buses

The Paris of South America has an amazing bus system — but it doesn't run like North American ones at all.

March 13, 2026

Friday’s Headlines Change How We Keep Score

The way the U.S. measures traffic death rates skews public perception toward the status quo.

March 13, 2026

Talking Headways Podcast: Buildings are Here to Help People

Jeremy Wells on his book, Managing the Magic of Old Places: Crafting Public Policies for People-Centered Historic Preservation.

March 12, 2026

Bus Companies Say There’s a Better Way to Take a ‘Great American Road Trip’ This Summer

"Our eventual goal is to make inter-city bus travel every American's first consideration when they think about how to get from one city to the next."

March 12, 2026

Opinion: Make This Summer’s World Cup A Car-Free Paradise

NYC has a major opportunity to support people who don't drive during the World Cup. Could other host cities do it, too?

March 12, 2026

Thursday’s Headlines Can’t Keep Up

While other developed nations are building more transit lines as their populations increase, the U.S. is not.

March 12, 2026
See all posts