Sustained investment in the public service obligation, PSO, programme has driven record public transport use, with passenger numbers up 23% and continuing to grow this year, alongside an expanded network serving over 240 towns and villages. As demand rises and congestion issues remain, Ireland’s public transport system has reached a pivotal point, with an increasing need for reliable services.
A fundamental reset in funding was required to place the PSO programme on a sustainable, long-term footing in line with the programme for Government commitment. Accordingly, the 2026 PSO allocation was structured to eliminate the need for supplementary in-year funding, providing greater certainty and stability for service delivery.
To underpin this, my Department secured an unprecedented €940 million allocation for PSO services in budget 2026, which was a 43% increase on the previous year. This significant investment provides a robust foundation to ensure that existing public transport services are delivered reliably and sustainably throughout the year, enabling the system to meet rising passenger demand and assist in absorbing growing operational costs.
The NTA is managing the 2026 allocation by prioritising delivery of existing programmes in line with operational readiness and resources. Enhancements within the current allocation are prioritised. Some changes are cost neutral while others require additional resources, and all are subject to funding, readiness and capacity.
Funding for new services in 2027 will be determined through the annual Estimates process, which we will be entering into shortly. Within the constraints of the reliable resources available, the NTA will be responsible for prioritising its service plan, taking into account operational readiness, demonstrated and anticipated passenger demand, and the need to deliver value for money.