GRTC warns of severe financial shortfall by 2031, service cuts likely

RICHMOND, Va. (WRIC) -- The Greater Richmond Transit Company (GRTC) is facing a severe financial shortfall by 2031 -- what officials are calling a "potential financial cliff" -- which could lead to service cuts for many Richmond riders.

To address financial problems and the exhaustion of its reserve funds, the GRTC is exploring ways to mitigate these issues, such as service cuts, delays to planned route expansions and increases to regional sales and gas taxes, among others, per a Sept. 30 board retreat.

According to those documents, the projected financial gap stems from the expired VCU TRIP Grant Match, though the documents note it stands at $100,000 through 2026.

The company’s $58 million reserves, supplied by the Central Virginia Transit Authority, are expected to drop significantly to $332,347 in 2031 -- a 99.5% reduction. The reserve fund balance is expected to decline from over $22 million to a little over $5 million.

Per the document's revenue streams, as GRTC's reserves are used up, a major deficit is expected to start in 2030, with about a $39.5 million gap in 2031 -- a 30% shortfall.

The deficit raises concerns over maintaining the current service level.

To mitigate the financial problems, the board is considering delaying or eliminating planned service expansions and possibly discontinuing the Community Assisted Ride Enterprise (CARE) Plus program, which offers origin-to-destination service for eligible riders.

A major option on the table is a 30% reduction of bus service along fixed routes, which would lead to notable cuts to service availability.

This news comes after GRTC's zero-fare bus program secured $6.8 million in state funding back in April 2025, following concerns over its status. Advocates warn that without sufficient funding, the program would reverse recent progress in accessibility, ridership and economic stability for many residents. However, as of Friday, April 11, the program will continue services at least through the fiscal end of 2026.

Ashley Potter with GRTC provided the following statement to 8News:

"GRTC is now working proactively to ensure sustainable funding. The funding gap reflects a broader regional and national trend, with transit agencies from Hampton Roads and Northern Virginia to Philadelphia and Chicago navigating similar budget challenges for years. Last fiscal year, we achieved record ridership of more than 12 million trips, providing access to over 230,000 jobs and cutting carbon emissions by more than 5,000 metric tons. These milestones show the vital role GRTC plays in our community as we work to maintain reliable transit access."