The Detroit Department of Transportation announced Monday morning inside a nearly finished maintenance facility the system is boosting wages and getting 53 new buses thanks to a $50.8 million federal grant.
The new hybrid buses and newly ratified contracts with DDOT drivers and mechanics will usher in a new era for the city’s transportation system, Mayor Mike Duggan said Monday.
The Trump administration announced the awardees last week. Detroit will receive funding for new hybrid buses to replace older aging diesel buses that have reached their useful life.
The total award is $50,854,529.
Megan Owens, the president of Transit Riders United, thanked Duggan, DDOT director Robert Cramer and city council president and Mayor-elect Mary Sheffield.
“Some of us ride the DDOT system — all of us need it. It is a critical part of this city to function and to grow and to thrive. This is a great step in the right direction but there’s a long way to go,” Owens said. “It’s out of crisis, it’s got a solid position, we’re excited to really see it move to good and a great system that this city can be proud of.”
The DDOT Reimagined plan aimed to improve rider experience after being known for long delays, no-show buses and poor customer service.
The plan has included shifting routes to ensure 90% of Detroit residents live near a bus stop to get wherever they need to go. DDOT is currently installing 21 new elevated bus boarding platforms along East Jefferson Ave. to enhance safety.
President of ASFCME Local 312, Muneer Islam, a union leader for Detroit’s DDOT mechanics, said it’s a group effort to get buses on the streets.
“Sometimes those people in the smaller classification feel like they’re overlooked,” Islam said.
Mechanic pay was at the center of activist’s unsuccessful demands to double DDOT’s budget during the budget negotiations earlier this year.
The American Federation of State, County and Municipal Employees union ratified a new contract that will pay mechanics up to $34.50 per hour. Earlier this month, more than 500 bus operators represented by the Amalgamated Transit Union Local 26, ratified a contract that increases wages by $6 per hour.
Islam said the new maintenance facility at Coolidge Terminal that’s nearly complete on Schaefer Highway will energize employees who don’t get public facing credit. He said that Detroit can be a top city in the country for public transportation.
“I think we’re going in the right direction to get there,” he said.
City council approved an increase to the department’s budget by $20 million in the 2025-26 fiscal budget, though activists with Transit Riders United called for more. The extra funds are being used to pay mechanics improve bus stop shelters and seating.
“I also have to thank all of the advocates who come down to the City Council on a regular basis to ensure every single budget we are investing in this system,” Sheffield said, adding that she plans to stand with advocates as mayor.
Duggan said no one has been a stronger champion in securing pay raises for bus drivers and mechanics than Sheffield.
Bus drivers and advocates say Detroit’s transportation system which is used by more tha 150,000 people daily has improved greatly over last few years since the pandemic.
Federal grants to purchase 76 new buses have already been awarded over the last two years, bringing the total number of new buses to 129. That means 44% of the entire fleet will be replaced with new buses by 2027.
The department announced last year it would use state and federal funds to purchase 21 hybrid and hydrogen buses to replace the city’s 25 diesel buses.

