Milwaukee’s Hop streetcar is facing a growing financial crisis as federal COVID-era funding dries up, ridership remains below pre-pandemic levels, and operational problems mount.
Despite adding a second line in 2024, the system still recorded nearly 30% fewer riders than it did in 2019. Now, with the loss of American Rescue Plan funds that once covered 65% of the Hop’s budget, the city is plugging a $4 million shortfall in the $5.7 million 2025 operating budget using Transportation Fund dollars.
Much of last year’s deficit was offset by increased parking ticket revenue, but new state restrictions bar Milwaukee from using shared revenue to expand the system. In January, the city scrapped a $25 million investment plan due to this limitation.
Federal support for further expansion appears unlikely.
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“I think it is going to be much less likely now,” said Baruch Feigenbaum of the Reason Foundation, as reported by the Badger Institute. “The streetcar is not the type of thing this administration wants to fund.”
The Hop has also been without a permanent system manager since last October. Although engineering firm HNTB has temporarily assisted, the hiring process has been slow. A job posting was only extended until March 21, with officials estimating a hire might not be in place until June.
During that leadership vacuum, operational issues worsened. A series of winter derailments, attributed to “worn to a state of near condemnation” wheels, led city officials to criticize Transdev, the French company overseeing daily operations.
“There’s a lot of things that seem to be going wrong that are a function of operation and management and supervision and not the Hop itself,” Ald. Robert Bauman said in February. “These types of systems operate just fine in other cities.”
Bauman, a longtime supporter of the streetcar, now deflects accountability: “Talk to the mayor. Streetcar management and the budget office report to him.”
But Mayor Cavalier Johnson’s office says responsibility lies with the Department of Public Works. “He’s not directing DPW one way or the other,” said spokesman Jeff Fleming.
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The lack of oversight also delayed the release of monthly ridership data. Total ridership for 2024 was 532,460—up 7.7% from 2023 but still far short of 2019’s 760,000. Inconsistent monthly trends showed little growth, with Summerfest in June providing a brief spike before a July dip, even as the city hosted the Republican National Convention and Bastille Days.
The new L Line, a 0.4-mile extension that opened in April 2024, hasn’t helped much. It has averaged just 165 riders per day—compared to 1,355 on the original M Line—despite similar operating hours.
“This is a milestone years in the making, and we couldn’t be more excited to finally provide streetcar service directly to Milwaukee’s lakefront,” said Public Works Commissioner Jerrel Kruschke at the L Line’s launch.
Without clear leadership, consistent funding, or meaningful ridership growth, the future of the Hop remains uncertain—leaving taxpayers and city officials scrambling to justify its continued operation.