Indianapolis’ public transit agency will increase basic fares 57% in 2026, marking the first time the cost has changed since 2009. IndyGo’s board unanimously approved the hike Thursday, along with the agency’s budget for 2026.
The basic-fare increase from $1.75 to $2.75 for fixed-route service is necessary for long-term financial health of IndyGo, officials say, because operating expenses have risen significantly since the last fare increase.
Expenses to operate an average bus in the system rose 71%, from $105 per hour in 2013 to $180 in 2023, according to IndyGo documents.
Currently, fares make up a small portion of IndyGo’s revenue. In 2025, the anticipated $5.9 million total for passenger fares is just 4% of the $146.7 million operating budget. The agency’s revenue comes mostly from property taxes, income taxes and federal and state assistance.
IndyGo CEO Jennifer Pyrz told reporters that the agency has been “filling in gaps” when it comes to revenue, and will likely continue to do so over the next year or two, but it can’t afford to maintain the $1.75 rate.
The operating budget will rise from $146.7 million in 2025 to $153 million in 2026.
“We cannot continue to just have less and less of our operations be funded by the fare box,” she said.
IndyGo’s board amended the fare-increase measure to delay a planned fee increase for the agency’s service for riders with disabilities, IndyGo Access, until July 1.
Users of the IndyGo Access service—many of whom are elderly, disabled and on fixed incomes—spoke out against the increases in public comment earlier this year.
Adairius Gardner, the board’s vice chair, said the amendment would give IndyGo additional time to educate riders with disabilities on the proposed IndyGo Access changes, as well as allow IndyGo and IndyGo Foundation staff to explore funding opportunities to provide financial relief to riders. An IndyGo spokesperson said that might entail finding a philanthropic partner to cover some of the cost of the increases.
Riders who use IndyGo Access face the steepest proposed increases because the buses, which come directly to rider homes, cost the most to operate.
The rate for IndyGo Access rides within three-quarters of a mile of an IndyGo route would increase from $3.50 to $5.50. For IndyGo Access rides scheduled 24 hours or more in advance, the rate would increase from $7 to $11. And, for same-day IndyGo Access rides, the rate would increase from $10 to $15.
IndyGo’s 2026 spending plan
Along with the fare hike, IndyGo’s board also unanimously approved the agency’s budget for 2026.
It plans to spend $257.6 million on capital improvements. The largest piece of that is ongoing work on the Blue Line, at $170.7 million, followed by $45.7 to build a new fleet garage and $18.3 million for new buses.
The organization also plans to spend $1.2 million on safety and security, including camera upgrades.
IndyGo will pay more than half of those expenses, at 55%, with grants. It will pay for most of the rest with bonds and just 8% with local dollars.
IndyGo plans to spend $153 million in 2026 on operations, a 5% increase from the 2025 budget. That increase, which is about $7 million, includes paying for six new employees—four fare inspectors and two security specialists—who currently work for an outside contractor. The new employees will give the agency greater control over how fare enforcement and rider education are implemented, according to budget documents.
IndyGo is also spending money to improve 29th and 30th streets as part of the Department of Public Works’ two-way conversion.
IndyGo crafted the 2026 budget on the assumption that fare revenue would remain flat, at $5.9 million.
Pyrz told reporters budget writers couldn’t assume the board would pass the fare-increase proposal, and a drop in ridership after a fare increase is likely. Pyrz said that has been the case for IndyGo in the past and is common among all transit agencies.
The City-County Council Municipal Corporations Committee will consider the IndyGo budget proposal Sept. 17 at 5:30 p.m.