Budget 2026: Public transport fare hikes or service cuts on cards

Government may raid National Development Plan funds to plug €250m gap in 'public service obligation' transport

A spokesperson for transport minister Darragh O’Brien confirmed there was a funding deficit in public transport due to cost increases. Picture: iStock

Public transport fare hikes or cutting back on services are on the cards in October’s budget because of a €250m funding deficit in State-run public transport services.

A “funding gap” exists in the public service obligation (PSO) for public transport, which includes services such as Bus Éireann, Dublin Bus, and Luas services. The obligation refers to funding provided by the Government to shore up routes that might not be commercially successful but are nonetheless vital, often for rural passengers.