Community Foundation of Southern Indiana Announces $2.45 Million Investment to Expand Public Transportation in Clark, Floyd Counties

Historic investment will help Blue River Services expand affordable, accessible transportation throughout Southern Indiana

NEW ALBANY, Ind. – The Community Foundation of Southern Indiana (CFSI) is making a historic $2.45 million investment to significantly expand affordable public transportation throughout Clark and Floyd counties, addressing a persistent community need that residents, employers, and service providers have identified as a barrier to employment, healthcare, and everyday life.

The two-year initiative, developed in partnership with Blue River Services and its Southern Indiana Transit System (SITS), will begin October 14 and expand low-cost transportation options across both counties through a combination of on-demand service and deviated routes.

The $2.45 million investment represents one of the most significant grants in CFSI’s 35-year history and is being made possible through Lilly Endowment Inc.’s Giving Indiana Funds for Tomorrow (GIFT IX) initiative.

CFSI received $3.75 million through GIFT IX’s Community Support Grants initiative, which provides Indiana community foundations with funding to support local projects and programs that address community needs and enhance quality of life. The Foundation’s Board of Directors approved directing $2.45 million of that funding toward the transportation initiative following extensive discussion about opportunities to address priorities identified by Clark and Floyd County residents.

“For years, our community has been telling us that transportation can be the difference between having an opportunity and being able to access it,” said Linda Speed, CFSI President and CEO. “You can have a job waiting for you, a doctor’s appointment scheduled or a training program that could open a new door, but those opportunities don’t mean nearly as much if you don’t have a reliable way to get there. This investment is about removing that barrier and connecting people with the opportunities, services, and everyday destinations that allow them to thrive.”

Community Input Points to Transportation

The decision builds directly upon findings from the Priorities for Progress in Southern Indiana: 2025 Update, CFSI’s most recent assessment of community well-being in Clark and Floyd counties.

Produced by the Indiana University Southeast Applied Research and Education Center, the study builds upon previous assessments conducted in 2015 and 2020 while placing additional emphasis on perspectives that can be underrepresented in traditional research, particularly those of low- to moderate-income households.

Transportation challenges emerged prominently during community listening sessions. Service providers identified transportation as a significant barrier to stable employment, healthcare, and training, while residents repeatedly raised the need for safe, reliable, and affordable ways to reach jobs and other essential destinations.

“When our Board considered how these resources could make a meaningful and lasting difference in Southern Indiana, transportation stood out because the need was coming directly from the community,” said Rich Boling, chair of CFSI’s Board of Directors. “This is a significant investment, and we approached it with the responsibility that it deserves. We had strong research, consistent community input, and an experienced partner positioned to turn those findings into action. There was unanimous support among our Board for pursuing this opportunity and seeing what it can make possible for our region.”

Affordable Transportation for the Entire Community

Through the initiative, Blue River Services will expand its existing Southern Indiana Transit System to provide greater rural-to-urban and urban-to-urban connectivity throughout Clark and Floyd counties.

Importantly, the service will be open to the public. Riders will not need to meet Medicare, Medicaid, income, age, or any other specific eligibility requirements to use the transportation system. Fares for trips within the service area will range from $2 to $4 each way based on distance, helping make the service an affordable option for residents who need reliable transportation.

The expanded system will focus on two types of service:

• On-demand service will allow riders to schedule transportation based on where and when they need to travel.
• Deviated routes will operate along established routes and schedules while allowing limited flexibility to pick up and drop off riders away from designated stops.

The expanded fleet will include ADA-accessible minibuses operated by trained and certified drivers, who will offer door-to-door transportation for those in need.

Blue River Services has spent recent weeks surveying residents about their travel patterns, common destinations, transportation challenges, and preferred service options. Staff have also engaged local governments, nonprofit organizations, and community leaders to help broaden participation and better understand where expanded routes and services can have the greatest impact.

“The most effective transportation system is one designed around the way people actually need to move through their community,” said Roland Lemus, Blue River Services Transportation Director. “The feedback we’ve received is helping us understand where people need to go, how they currently get there, and where the gaps exist. With this investment, we have an opportunity to create more connections across Clark and Floyd counties and provide an affordable transportation option that can give people greater independence and access to employment, healthcare, and other essential services.”

Building a Model That Can Last

Beyond expanding transportation during the two-year grant period, CFSI and Blue River Services intend for the initiative to demonstrate the long-term demand and value of expanded public transportation in Clark and Floyd counties.

The project will allow Blue River Services and community partners to establish and refine service, measure ridership, gather data, and demonstrate demand while building the cross-sector partnerships necessary to pursue a sustainable transportation model beyond the initial grant period.

Residents are expected to benefit from increased mobility and independence, while employers and businesses could benefit from improved connections between workers, customers, and destinations throughout the two counties.

“This is about more than putting vehicles on the road,” Speed said. “It’s about learning what works, demonstrating what is possible and giving our region an opportunity to build something sustainable. Philanthropy can be especially powerful when it gives a community the ability to test a solution, learn from it and create the evidence and momentum necessary for others to invest alongside us.”

The $2.45 million transportation investment represents a portion of CFSI’s $3.75 million GIFT IX Community Support Grant allocation. CFSI plans to announce additional investments from the remaining funding in the coming weeks, including funding that will directly support additional grantmaking to local organizations.

To learn more about this program, visit the Community Foundation of Southern Indiana’s website – www.CFSouthernIndiana.com – or call (812) 948-4662.