TriMet Board of Directors adopts fiscal year 2027 budget that reduces agency’s overall spending to preserve core transit service vital for region’s economic recovery
TriMet will make major spending cuts and a historic staffing reduction beginning July 1, 2026, as we continue taking action to address an annual budget deficit and preserve our core transit service for our riders and the region, even in the face of rising costs.
The TriMet Board of Directors adopted our agency’s fiscal year 2027 (FY 2027) budget on Wednesday, May 27, 2026. Most of the actions directed in the budget streamline our overall spending by about $64.5 million, reflecting about $53 million in administrative spending cuts and about $11 million in service cuts.
The FY 2027 adopted budget totals $1.75 billion, with $1.14 billion available for service, operations, capital/maintenance projects and other requirements. The budget relies on $127 million in reserve funds to close the gap between expenses and revenues.
TriMet first announced a $300 million structural budget deficit in July 2025. Despite internal spending cuts, a staffing reduction in fall 2025 and pausing planned bus service increases that totaled about $150 million in savings, our deficit grew faster than we can reduce it.
That’s because the costs of operating public transit continue to rise, including sharp increases this year, and revenue is not keeping up with those increases.
TriMet’s long-term budget deficit currently stands at $224 million and includes the Board-approved service cuts for later this year. Our fiscal cliff, when we will be out of the money necessary to provide service, is forecast for May 2029. Further budget and personnel reductions that go into effect on July 1, 2026 will reduce our long-term deficit to $160 million, with our goal of closing that gap by July 2028.
Although cuts are necessary to close the deficit and avoid running out of money, TriMet continues to work with state, regional and local leaders to identify new, sustainable funding essential to sustain the public transit that is vital for the Portland region’s recovery.
“We at TriMet have made historic investments in security, cleaning and promoting service to increase ridership, but we must now resize our agency to reflect our current financial reality,” said TriMet General Manager Sam Desue Jr.
“No leader wants to lay off employees, especially during a regional economic downturn and high unemployment, and no public transit agency wants to cut service. But TriMet must take drastic action now to ensure our core transit service will continue for the region for generations to come,” said Desue.
Historic staffing reduction
A large portion of TriMet’s FY 2027 spending cuts will come through a historic staffing reduction.
In the first quarter of the fiscal year starting July 1, 2026, TriMet will eliminate approximately 400 positions, about 140 of which are vacant. Among the positions not vacant, many of those workers are eligible to return to prior union positions, in accordance with the current Working and Wage Agreement (WWA). That means the number of employees facing layoff is about 170 — about 100 nonunion and 70 union employees.
Union employees have rights outlined in the WWA between TriMet and Amalgamated Transit Union (ATU) Local 757, in the event of a staffing reduction. Those include “bump back rights” to return to previously held union positions and rights to re-employment, based on their seniority and other considerations. Nonunion employees do not have the same rights outlined in the WWA. Instead, they will be offered a severance package.
Combined with a previous, smaller staffing reduction in fall 2025, TriMet’s overall staffing has dropped by just over 500 positions since July 1, 2025.
Total budgeted positions
- 3,708 positions (FY 2026 adopted budget)
- 3,204 positions (after FY 2027 staffing reductions and layoffs take effect)
August 2026 service reduction
Spending in TriMet’s FY 2027 adopted budget also reflects efforts to bring our service in line with our current resources. To do that, we must cut at least 10% of our service.
Beginning Aug. 23, 2026, TriMet will implement service changes to 33 lines approved by the TriMet Board in April. The changes include eliminating two bus lines with other cuts and adjustments for network efficiency. Those involve shortening the MAX Green Line and combining bus lines or reducing where lines run near others and moving routes to maintain as much service in areas and at times when more people ride. Learn more about our efforts at trimet.org/servicecuts.
The changes reduce TriMet’s weekly bus service hours by about 3.1% and weekly MAX service hours by 8.7%, while focusing our service investment where it is needed and used most.
TriMet engaged the community last fall and earlier this year to determine the best approach to reduce service and increase efficiency. TriMet will begin engaging riders and the community in September on a next round of service cuts for next summer.
Other reductions
TriMet’s efforts to streamline spending include internal changes such as lessening training for nonunion staff, limiting travel, decreasing software use and reducing the use of contractors. But the cuts are affecting some of our customer-facing offerings in addition to service. Beginning next week, our Customer Service call center will no longer be open on weekends and our Lost & Found hours will reduce from 12 to 10 hours daily.
Effective June 1, 2026
- Customer Service/503-238-7433 (RIDE): Mon.-Fri., 7:30 a.m.-5:30 p.m.
- TriMet Lost & Found: Mon.-Fri., 7:30 a.m.-5:30 p.m.
Other adjustments may become evident in the coming fiscal year, but our intention to provide safe and reliable service will not waiver. For instance, our Security Operations Center and security hotline will continue to operate 24 hours a day, seven days a week.
“We are dedicated to maintaining a safe system with our law enforcement partners including Multnomah County Sheriff’s Office, other police agencies and the Multnomah County District Attorney’s Office,” said TriMet Chief Safety & Security Officer Andrew Wilson. “We continue to add Transit Police officers and have made technological advancements with our security dispatching, extensive 10,000+ camera system, blue-light security phones and other efforts to more efficiently ensure safety on our system.”
Staffed by trained security dispatchers with access to more than 3,500 live-feed cameras, the Security Operations Center has led to 30% faster response times and a 40% improvement in de-escalating situations before they turn serious.
To keep TriMet service operating safely and reliably, the FY 2027 budget includes $217 million for capital projects with $103.2 million of that dedicated for projects to maintain and modernize TriMet’s buses, trains and light rail infrastructure.
Increasing costs
TriMet faces the same challenges as other local governments, school districts and fellow transit agencies: rising costs and revenue streams not keeping up with them.
On average, TriMet’s costs for providing public transit increased about 56% between 2019 and 2025, on everything from materials to equipment to contract services. Prices continue to go up this year. TriMet’s fuel costs alone have surged sharply in 2026, as much as 84% over weekly budgeted amounts, due to the Iran War.
Lagging revenues and sustainable funding
Far less money is coming in from passenger fares today than before the COVID-19 pandemic, despite a fare increase in 2024. That’s because ridership remains about 30% below 2019 figures, and ridership growth has slowed as travel patterns changed and remote work continues, with Oregon second in the nation for remote work.
Payroll tax revenues are not keeping up with cost increases due to high unemployment in the region and state. Oregon’s jobless rate is outpacing the national average and the sixth highest in the nation.
TriMet and fellow Oregon transit agencies began engaging state and regional leaders in late 2024 about the need for increased transit funding. As TriMet mentioned at that time, we would need to begin cutting service if the State Legislature did not increase the employee payroll tax that funds transit, referred to as the Statewide Transportation Improvement Fund, from its current 0.1% rate.
The State Legislature did not pass the transportation package — and its phased 0.3% increase in the STIF — during the 2025 regular session and, instead, included a small, temporary STIF increase in the package that passed in the 2025 special session. That package was just voted down as Measure 120 in May 2026
“This is a challenging time – not only for TriMet but for the region,” said TriMet General Manager Sam Desue Jr. “We have a mountain to climb, but never has our mission mattered more as the region needs a reliable and viable transit system to continue its recovery.
“We urge lawmakers to join us and the Oregon Transit Association in seeking new strategies to address sustainable public transit funding – not only for the tens of thousands of riders who rely on it, but for all Oregonians,” added Desue.
Everyone benefits from TriMet service
TriMet’s public transit service benefits everyone, whether they ride or not. From easing congestion and improving air quality every time someone chooses a shared ride on a bus or train rather than driving alone or using a ride-hailing service.
TriMet saves money over driving. According to AAA, the overall average cost to own and operate a new car was $11,577 in 2025. The sharp increase in fuel is making it more costly today. The annual cost for riding TriMet buses and trains is $1,200 if paying our adult fare or just $336 if paying our reduced fare.
TriMet also benefits the economy. Every $1 invested in public transit generates $5 for a local economy, according to research by the American Public Transportation Association (APTA). Here in TriMet’s service district, which includes 533-square-miles of Multnomah, Clackamas and Washington counties, that economic catalyst is evident through jobs, recreation and business growth.
TriMet’s transit services connect people to jobs – everything from work in essential services such as hospitals, stores and manufacturing, to jobs in the trades to professional positions.
TriMet gets people to schools and training programs where they prepare to be active contributors to the region’s economy.
TriMet takes people to shops, restaurants and venues where those customers spend their money, benefiting local businesses and their workforces.
TriMet contracts with local businesses for materials and services, from renewable diesel delivery to bus shelter cleaning, from computer equipment to snow and ice removal, from design expertise to multicultural outreach support. Our work with other businesses helps them grow and thrive.
Learn about TriMet’s budget efforts at trimet.org/budgetcuts.