RVTD Plans Major Service Cuts Amid Federal Funding Dispute

Medford, Oregon- The Rogue Valley Transportation District (RVTD) announced plans to implement sweeping service reductions beginning September 2, 2025, citing a delay in federal funding linked to an ongoing legal dispute between the State of Oregon and the federal government.

RVTD, which relies on federal funding for roughly half of its operating budget, said the funding is currently being withheld as Oregon and other states engage in litigation against the Federal Administration over immigration laws. The legal process could stretch for weeks or even months, creating significant uncertainty for local transit operations.

Earlier this year, RVTD marked a milestone with the opening of a new multi-million dollar two-story, 10,000-square-foot, office building at its northeast Medford campus. According to officials, the facility represents a significant investment in the agency’s administrative and operational capacity as it continues to serve the region’s growing transportation needs.

In addition, RVTD finalized renovations of a former Rogue Community College building located at the corner of South Front Street and East 8th Street in downtown Medford. The remodeled facility now hosts an interactive training center designed to assist seniors, individuals with disabilities, and other community members who may need additional support in navigating public transit.

There was no information regarding if these recently completed capital projects are expected to be directly impacted by ongoing funding uncertainties.

In addition to the stalled federal assistance, RVTD stated that state-level transit funding has failed to keep pace with the rising costs of service delivery in recent years, increasing the district’s reliance on federal dollars. Without immediate access to these revenues, RVTD will be forced to temporarily lay off employees, including administrative staff, and scale back services.

The upcoming changes include the elimination of all Saturday service, reduced weekday hours, and the suspension of several routes. RVTD officials noted that they will prioritize maintaining the routes with the highest ridership and those that provide the most community coverage. Further details are expected in the coming weeks.

Officials encouraged the public to begin planning now for a reduced transit system and expressed hope that the disruption will be temporary.