NEW ORLEANS – Today, the New Orleans Regional Transit Authority (RTA) secured approval of its $225.2 million 2026 Operating and Capital Budget by the Board of Commissioners at its monthly meeting, the final meeting of 2025. This financially responsible plan protects service levels, advances major infrastructure projects, and positions the agency for long-term stability amid a shifting economic landscape. 

“This budget reflects our commitment to delivering reliable, world-class transit while being responsible stewards of public resources,” said Fred Neal, Jr., Chair of the RTA Board of Commissioners. “Even in a tightening economic climate, RTA continues to invest in improved service delivery, better-maintained vehicles, and enhanced rider amenities. I am proud of the collaboration that brought us to a balanced plan for 2026.” 

RTA CEO Lona Edwards Hankins emphasized that the final budget aligns directly with the agency’s five strategic priorities—World Class Rider Experience, Innovation, Regional Connections, Equity, and Workforce Development—while preserving transit service for riders across the region. 

“Our focus is simple: protect today’s service and build tomorrow’s system,” said Hankins. “This budget reflects disciplined planning, conservative revenue forecasting, and aggressive pursuit of federal capital dollars. RTA is focused on maintaining operations, strengthening the fleet, and advancing projects that will improve the rider experience for decades to come.”

Key 2026 Budget Features 

Stable Operations in a Tight Revenue Environment

• FY26 operating expenses remain relatively flat year-over-year, with increases driven primarily by insurance and mandatory retirement costs.
• Preserves current service levels, Workforce strategically right-sized—from 894 to 871 FTEs—protecting essential operations while controlling long-term costs

Conservative Revenue Forecasting 

• Sales tax projections remain conservative due to uncertainty in tourism and broader economic conditions.
• Modest increases in ridership are projected. Hotel–Motel tax revenue is expected to improve slightly following recent legislation

Use of Reserves to Maintain Service 

• The FY26 budget anticipates using approximately $14 million in reserves to balance operations—consistent with the reserve fund’s intended purpose and far below depletion levels.
• RTA continues active work with city and state partners to strengthen long-term revenue sources for public transit.

Major Federal-Funded Capital Investments Move Forward 

RTA continues to execute a capital program built largely on competitive federal grants that support modernization and state-of-good-repair needs, including:  

• Algiers Ferry Terminal construction and accompanying barge replacement
• Bus Rapid Transit (BRT) design and early stakeholder engagement 
• Streetcar System Modernization Master Plan
• Universal Accessibility Study and ADA gap-closure strategy
• Charging infrastructure for incoming battery-electric buses
• Downtown Transit Center design and six regional mobility hubs
• Bus engine and transmission overhaul program supporting fleet reliability

“These capital projects are not cosmetic,” said Hankins. “They are strategic investments in reliability, safety, accessibility, and long-term cost control. Federal grant funding allows us to modernize the system while minimizing the impact to our operating budget.”

Looking Ahead 

RTA leadership emphasized continued transparency as local and national economic conditions evolved. The agency will monitor revenue performance closely throughout 2026 and continue strengthening partnerships that support transit funding statewide. 

“RTA’s focus remains unchanged: deliver excellent service, support our workforce, protect our infrastructure, and maintain financial discipline,” Hankins said. “This budget keeps us on that path while positioning the agency—and the city—for a stronger, more connected future.”

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The New Orleans Regional Transit Authority is a sub-division of the State of Louisiana which is operated by an independent Board of Commissioners that serves Orleans, Jefferson, and St. Bernard Parishes. The agency operates car and passenger ferries, fixed-route buses, Paratransit, and streetcar service.