Area 10 Agency on Aging will stop providing public transit service between Ellettsville and Bloomington at the end of the year, citing the loss of federal and state rural-transit funding.

The final day of service will be Dec. 31. Beginning Jan. 1, 2027, Area 10 Rural Transit says it will no longer be able to provide what is classified as urban-to-urban service between Ellettsville and Bloomington.

Area 10 said in a Facebook post that the decision is not related to ridership or the performance of the service.

Instead, it stems from Ellettsville becoming part of the Bloomington urbanized area.

That designation changed which federal transit funding can be used for trips between the two communities.

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Area 10 previously relied in part on federal Section 5311 funding, which supports rural transit. But trips between Ellettsville and Bloomington are now considered urban-to-urban and fall under a different federal funding program.

The funding issue has threatened the service for several years.

In 2024, the Monroe County Council and Monroe County Commissioners agreed to redirect nearly $157,000 in unused American Rescue Plan Act funding to keep the service operating through 2025.

Area 10 Executive Director Chris Myers said at the time that the money was "not a permanent fix."

Ellettsville officials had also considered using money from the town's general fund but rejected that option because of other budget priorities.

Area 10 said the transit service has been used by riders traveling to work, medical appointments, shopping and other daily activities.

"We know that losing this service will create challenges for many," Area 10 said in a statement.

The agency said it will work with riders through the remainder of the year to identify alternative transportation options where possible.