Austin City Council approves $5 million increase to fund Capital Metro service expansion

April 9, 2026

Austin City Council voted on March 26 to amend its budget and provide an additional $5 million to Capital Metro. The move directs the funds toward service expansion and higher frequency on targeted routes, with some money earmarked to pay staff for extended hours.

The amendment targets Route 2, which links downtown, parts of East Austin and Central Austin, and will reconfigure service to form a loop that navigates active construction zones. Planners expect the loop to maintain connections while work continues on nearby projects.

City officials say the $5 million comes from a 2024 Climate Pollution Reduction grant, worth $47.9 million, awarded by the Environmental Protection Agency to multiple transportation organizations in the Austin area. The city allocated this portion to Capital Metro as part of a broader effort to reduce vehicle miles traveled.

Jacob Barrett, the city’s Transportation Demand Management program manager, said construction-driven congestion is pushing some people to consider transit, and the grant offers a way to accelerate that shift. He noted the city’s longer-term goal of getting half of Austin residents to commute by alternate modes rather than driving by 2039.

Student rider Vanessa Cangas described how she uses CapMetro at least three times a week to reach her job, even though she owns a vehicle. She said the bus saves her from parking hassles and adds convenience, illustrating the practical appeal officials hope to expand.

Transportation engineering professor Randy Machemehl pointed out that environmental and congestion benefits depend on how many riders buses carry. He said increasing service frequency tends to draw more users, which then lowers traffic and emissions across the network.

Council members and transit planners expect the funding to smooth travel during the next phase of construction, improve air quality and make commutes more reliable by boosting capacity and frequency. Capital Metro will implement route adjustments and staffing changes as the city coordinates schedules and service levels.