MILWAUKEE, Wis. – A Milwaukee alderman’s recent push to end the city’s streetcar operations now includes an appeal to the federal government for assistance.
Alderman Scott Spiker’s letter sent October 28 to US Transportation Secretary Sean Duffy asks the department to release the City from the remainder of grant obligations incurred during the development of The Hop before its debut in 2018.
“I am asking you to remove an albatross that has been hanging around our necks for far too long now,” wrote Spiker to Duffy. “You did not put it there, but neither did the taxpayers of Milwaukee.”
Wisconsin State Representative Bob Donovan and State Senator Van Wanggaard penned a separate letter to Duffy offering their support for Spiker’s letter.
“I argued at the time that we should not have gone down this path. Having said that though, I’m hopeful that we can solve this issue,” Donovan told ‘Wisconsin’s Midday News’ October 29. “Milwaukee residents were sold a bill of goods and boy we fell for it. Now we’re paying the piper big time.”
A request for comment from Duffy was not returned by the time of this article’s publication, though in April he did send a “Follow The Law” memo to cities who have received federal transportation funding.
“Federal grants come with a clear obligation to adhere to federal laws,” said Duffy. “It shouldn’t be controversial – enforce our immigration rules, end anti-American DEI policies, and protect free speech. These values reflect the priorities of the American people, and I will take action to ensure compliance.”
By removing the grant obligations, Spiker believes the City can end the streetcar’s operations without paying millions in legal callbacks to the federal government. The callback is a legal requirement to keep The Hop’s vehicles in operation for at least 25 years, and the infrastructure such as rails and switches for 40 years. If operations ended before those minimum windows, the City could have to pay an estimated $48 million to the federal government.
“So if you decided, ‘I don’t want to run it today’, that’s a $48 million check we’d have cut tomorrow,” said Department of Public Works Commissioner Jerrel Kruschke during a Finance and Personnel Committee hearing October 16.
Spiker’s letter is the latest chapter in his recent push to end The Hop’s operations. At the start of October, Spiker suggested dismantling the streetcar as a way to prevent the increase of the City’s vehicle registration fee, also known as a “wheel tax”.
The Hop’s current 2.1 mile loop through Milwaukee’s downtown and lower east side areas includes the M and L Lines, the latter of which began operations in 2024. Krushcke and others have admitted prospects for expansion of the system in the short-term future are limited, due in part to 2023’s Act 12, which included the provision that the City of Milwaukee be barred from using “moneys raised by levying taxes for developing, operating, or maintaining” the streetcar in exchange for the ability to levy a 2% city sales tax.
Under the proposed 2026 City budget, the City estimates it will cost $6,943,584 to operate the streetcar next year. The system is expected to generate $2,692,093 in revenue between streetcar sponsorships, advertising and operating assistance, according to data presented by DPW to the finance committee. That would incur a roughly $4.2 million deficit for the City to cover, similar to previous years of the streetcar’s operation.
According to the most recent data available in terms of ridership, 45,237 people rode The Hop in September of 2025. That equates to an average of 1,508 riders per day and is up about 1,000 riders from the same month in 2024.
“Our needs are growing, and our status quo is slowly killing us,” Spiker commented during the October 16 meeting.
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There is not believed to be enough support currently within the Milwaukee Common Council to end the streetcar’s operations. Alders Peter Burgelis and Bob Bauman have been notable defenders of The Hop, citing its impact on property values along both lines. According to the City Assessor’s 2025 City of Milwaukee Revaluation Report, downtown Milwaukee’s core districts near where the streetcar operates (which include East Town, Westown, the Third Ward and the lower east side) experienced assessed value increases of 16.46 percent.
While there is not believed to be enough support currently on the Common Council to end streetcar opeartions, the scheduled City Budget Amendment Day is October 31, with the full Common Council poised to vote on adoption of the budget November 7.
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