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VCU not committed to future funding for GRTC’s $0 fares

A Pulse bus makes its way eastward on broad street
Shaban Athuman
/
VPM News
A GRTC Pulse bus passes the Willow Lawn station on Thursday, September 7, 2023 in Richmond, Virginia.
Updated: April 11, 2025 at 6:21 PM EDT
April 11, 2025: GRTC announced that it will be able to continue free fares for at least one more year, according to its planned budget for fiscal year 2026 (July 1, 2025–June 30, 2026).

Click here to watch our VPM News Short about this story

The fate of Greater Richmond’s free bus service depends on one thing: money to pay for it.

The Greater Richmond Transit Company needs $6.8 million to keep its Zero Fare policy going in fiscal year 2026, which starts July 1 and ends June 30, 2026, according to the transit system and a new report from an advocacy group.

GRTC launched Zero Fare in March 2020 as a COVID-19 safety measure and eventually got $8 million in state grant funding at the end of 2021 to keep the program going the past five years.

Both transit officials and advocates like Faith Walker, executive director of RVA Rapid Transit, say keeping Zero Fare is a priority. Walker calls it a “lifeline” for people who rely on public transportation to get around, particularly low-income riders with ongoing financial pressures.

“I’ve talked to people who had jobs for the first time in a long time, and if it wasn’t for free fare, they don’t know how they would’ve gotten to work cause it takes two weeks for you to get your first paycheck,” Walker told VPM News.

With a state grant ending soon and Virginia Commonwealth University not committing future funding, GRTC’s Zero Fare program will rely on finding other funding sources.

The state grant, which provided a total of $8 million from FY23 through FY25, went toward maintaining and studying Zero Fare in the region, and required local matching funds. This includes nearly $9 million from GRTC and $3.8 million provided by VCU.

GRTC gets local, state and federal funding for its operations, including money from the Central Virginia Transportation Authority.

The transit system has dealt with zero-fare funding concerns. In 2022, GRTC covered a funding gap after then-Richmond Mayor Levar Stoney didn’t include $1 million to help pay for the program that the transit system was counting on.

The state grant funding ends June 30, and VCU spokesperson Brian McNeill confirmed for VPM News in late March that the school won’t commit to directly fund GRTC’s free fare program past its existing contract, which ends on July 31.

Prior to the pandemic, VCU partnered with GRTC in 2018 to find how much it costs to cover fares for VCU and VCU Health students and employees, and the current contract between them is meant to pay for these rides, per the school’s statement.

“During the pandemic, GRTC began offering zero-fare service to all GRTC passengers and has since received funding to offer sustainable fare-free transit to the entire region. That action fundamentally shifted the basis and need for the agreement between VCU and GRTC,” VCU’s March statement reads. “As a result, at this time VCU does not require additional services beyond those provided to other riders throughout the region.”

Ashley Potter, GRTC’s communications manager, said because the transit system still hasn’t adopted a FY26 budget, it’s unclear how Zero Fare will be funded — yet. She added that the public service company is “disappointed” about VCU’s decision and said GRTC remains optimistic about continuing their relationship.

VCU’s statement also said the university will explore advertising on GRTC’s fleet to support the transit system and may consider funding Zero Fare alongside other public and private partners if GRTC’s funding for the service changes.

Tyrone Nelson, chair of GRTC’s board of directors and a Henrico County supervisor, told VPM News that VCU’s decision “means nothing for free fare.”

“GRTC continues to offer free fare for its region riders and will do so for the foreseeable future,” Nelson wrote in a message to VPM News.

Henrico proposed setting aside $6.5 million in its FY26 budget for mass transit, but a cost breakdown in county documents doesn’t show funding dedicated to the zero-fare program.

GRTC mostly serves low-income residents, with 74% of riders living in a household earning less than $40,000 a year, per the transit system. And GRTC has seen historic ridership growth since Zero Fare started, including nearly 11 million passengers in fiscal year 2024.

Potter said the transit system and its board remain committed to keeping Zero Fare in the future. She highlighted GRTC’s ongoing efforts to get new partners to provide funding, including seeking public donations through its Transit Access Partnership program.

“We just know it's something that the community needs, wants, desires, and we're hoping to continue that effort,” Potter told VPM News. “We're not slowing down at all.”

A January presentation given to GRTC’s board assumed a $1.2 million contribution from VCU for Zero Fare in the system’s FY26 proposed baseline budget. GRTC’s budget planning comes as local governments, including Richmond’s, navigate financial uncertainties amid new federal funding cuts and policies.

Walker said she’s hopeful funding will be secured to keep free fares going.

“I think the city as a whole needs to come together and figure out strategies on how we can implement zero-fare,” Walker said, adding that “everybody could be doing something to keep free fares.”

According to Walker, the potential end of Zero Fare would exacerbate the transportation access issues many people already face in Greater Richmond. She added that GRTC could lose out on state funding tied to ridership if Zero Fare goes away.

A new report authored by Walker includes data from a survey of 100 local bus riders. Eighty-three respondents said they ride the bus more often because of the free fare program — and nearly 12% said they wouldn’t ride if fares come back.

Dean Mirshahi is a general assignment reporter at VPM News.
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