IndyGo bus fares could rise for the first time since 2009. Here's what to know

Indianapolis Star

15-05-2025

IndyGo leaders are trying to increase bus fares for the first time since 2009, as the transit agency's operating costs have risen in recent years while ridership remains down.
IndyGo's typical bus fare could increase from $1.75 to $2.75 per trip — a 57% increase — under a proposal introduced to the IndyGo board of directors May 15. A similar fare increase would apply to IndyGo Access buses, separate reservation-based routes for people with disabilities, where the starting fare would rise from $3.50 to $5.50.
The fare increases could make life more difficult for the average IndyGo rider, whose household income is less than $25,000 a year. To offset the higher per-ticket cost, IndyGo officials are pushing more riders to use the MyKey fare system introduced in 2019, which puts daily and weekly price caps on how much a rider must pay.
Those MyKey limits would also increase, however, from $4 to $6 for the daily cap and $15.75 to $24.75 for the weekly cap. IndyGo would eliminate the $2 startup fee for a MyKey card.
After a public hearing June 18 and a final vote Aug. 21, the higher fares would take effect Jan. 1, 2026, if approved.
The fare increase could threaten IndyGo's slowly rebounding ridership after the pandemic. Total trips plummeted 84% from a high of 9.2 million in 2019 to roughly 5 million in 2021. In 2024, ridership had rebounded to nearly 7 million trips.
IndyGo officials say the agency needs more revenue to offset higher costs for fuel, labor, construction and capital improvements like new buses or facilities. The fare increases are roughly in line with a 58% rise in IndyGo's operating expenses from 2013 to 2023, officials say.
Meanwhile, $1.75 is worth two-thirds today what it was in 2009. Adjusting for inflation, $1.75 in January 2009 is equal to about $2.61 today, slightly less than the new proposed fare of $2.75.
The new fare would be higher than those in comparable cities. Residents pay $2 a trip to ride the bus in Columbus, Detroit and Nashville. Charlotte residents pay $2.20 a trip while in Chicago a single bus ride costs $2.25.
Fare payments now make up only about 4-6% of IndyGo's total revenue, officials told IndyStar, compared with nearly 20% in the 2000s. A projected $5.9 million in fare collections in 2025 made up 4% of the $75 million budget. IndyGo relies on federal funding, grants and local taxes for the remainder of its revenue.
IndyGo also misses out on fare revenue on the high-ridership BRT routes, where customers can easily board without paying. Malfunctioning kiosks have led to additional losses. IndyGo is responding with random fare inspections on board and new equipment.
IndyGo leaders deferred fare increases in 2016 after Marion County residents voted to raise local income taxes to give IndyGo about $56 million a year in new revenue, which went toward a 70% increase in bus service and the construction of three bus rapid transit routes. The Red Line opened in September 2019 and the Purple Line in October 2024. Construction is underway to finish the Blue Line along Washington Street by 2028.
IndyGo officials told IndyStar they would have eventually needed to increase fares even had they not spent an estimated $671 million to build those three BRT lines. More than half of that money is federal funding, mostly from the Federal Transit Administration, while the rest comes from local sources.
The price hike could hurt the majority of IndyGo riders, who are low-income and pay with cash instead of MyKey.
According to a 2022 rider survey, the typical rider is a Black woman aged 35-49 whose household income is below $25,000 a year. She has no personal vehicle and pays cash to ride the bus five days a week to travel between home and work.
Among IndyGo riders, 57% report living in a zero-car household and 71% report household incomes less than $35,000 a year.
Most riders, 54%, pay with cash for one trip or a day pass. About 21% use MyKey — 17% through a tap card and 4% through the mobile app. The remaining quarter of riders use alternatives such as 10-trip, seven-day or 31-day passes, among others. Those options would be phased out under the new policy, leaving riders to use cash or MyKey.
Someone who rides frequently enough could save money using MyKey instead of cash. For instance, a rider who takes the bus to and from work five days a week and adds two leisure trips on separate evenings would reach the $24.75 price cap on their Friday morning commute. Then they could ride free of charge all of Friday afternoon and all weekend.
The typical rider who pays cash, however, spends $29.75 a week on 17 back-and-forth trips, including seven leisure trips and free transfers within two hours of boarding, IndyGo officials say.
Some riders will still receive discounts or ride for free. Seniors with a Medicare card, children and people with disabilities pay half-fares, as required by federal law. IndyGo offers free rides to veterans, some government employees and IndyGo employees, among other discounts.
Purple Line ridership: IndyGo's Purple Line jumps to No. 1 in monthly ridership as Red Line, other bus routes falter
If IndyGo's board of directors passes the fare increases in its Aug. 21 board meeting, new prices would take effect Jan. 1, 2026.
But residents have a number of chances before then to ask questions and voice concerns.
Here's the timeline for feedback and a final vote on the policy changes. Check IndyGo's "The Value of Transit" webpage (https://www.indygo.net/value-of-transit/) for the latest updates on times and locations of the following events: