According to the minister, the main task is to maintain the existing network of regional routes. However, due to rising costs, partly caused by the geopolitical situation, it is becoming increasingly difficult to ensure the previous level of funding. > "The question arises as to what we should do next. This is currently the biggest challenge," noted Kozlovskis. The minister reminded that Latvia has a wide range of travel benefits, and recently the government expanded the circle of recipients of the **"Honored Family"** certificate. According to him, this will require nearly **one million euros** in additional funding. > "The source of funding has not been determined; it is impossible to find these funds within the industry. No one is ready to increase funding, so we will most likely have to consider the option of partial fare payment for benefits recipients," said the minister. He explained that many categories of passengers currently use public transport for free. As an example, Kozlovskis cited a ticket costing **2 euros**: in this case, the passenger could pay about **20 cents** extra. In response to a question about a possible increase in ticket prices as early as next year, the minister stated that he does not want to make unfounded promises. > "We are talking about an industry that exists on its own revenues and state subsidies. If the level of funding does not increase, we will have to look for internal solutions. If politicians decide to increase spending, it should be provided for in the medium-term budget, not as a one-time measure," emphasized Kozlovskis. According to him, the industry needs a long-term funding model. Otherwise, the state will have to increase subsidies annually, which cannot be considered a sustainable solution. The chairman of the **Road Transport Administration (ATD)**, Janis Lapins, explained to LETA that the costs of regional transportation consist of the value of contracts with carriers and the number of trips made. Revenues are formed from budget subsidies, ticket sales, and compensation for discounted travel. According to him, there are few opportunities to increase revenues: raise ticket prices, introduce partial payment for benefits recipients, or reduce the volume of transportation. At the same time, the cost of contracts with carriers will rise due to annual indexing. > "If state funding is insufficient, we either have to raise ticket prices, which currently cover about **35%** of costs, or ask benefits recipients to pay, for example, **10%** of the ticket price," noted Lapins. It was previously reported that the government may consider possible solutions for financing regional bus transportation as early as August. The president of the Latvian Passenger Carriers Association, Ivo Oshenieks, previously stated that the industry expects annual indexing of long-term contracts with carriers instead of the current indexing every four years. According to him, this will help compensate for the rise in fuel prices and the increase in drivers' wages. The **ATD** also reported that they have already prepared proposals for transitioning to annual indexing of contracts. According to the administration's calculations, an additional **10.35 million euros** will be needed for these purposes in **2026**. Proposals for allocating the necessary funds have already been submitted to the Ministry of Transport.