Santiago's RED public transport system annual subsidy reached a record US$1.274 billion in 2025 after four straight years of increases. Transport Minister Louis de Grange blames the previous administration's excessive bus purchases for creating surplus supply and historically low speeds.
The annual subsidy for the RED system, covering about 65% of operating costs while fares cover 35%, has risen over the past four years due to inflation, diesel, labor, dollar, and energy costs. MTT data shows it grew from $807.618 million (US$890 million) in 2021 to $1.002.898 million (US$1.105 million) in 2022 (+24%), $1.115.094 million (US$1.229 million) in 2023 (+11%), $1.150.586 million (US$1.268 million) in 2024, and $1.156.037 million (US$1.274 million) in 2025. The four-year total is $4.424.615 million (US$4.878 million), 29% higher than the prior administration. A 2024 subsidy law sets a permanent US$1.057 million annually until 2032. Minister Louis de Grange stated the previous administration “se dedicó a comprar buses en forma excesiva”, boosting the fleet to nearly 8,000 buses despite fewer passengers than in 2008. This, he said, creates “exceso de oferta that does not necessarily mean better service”, with average speeds below 18 km/h on weekdays (under 17 km/h afternoon peak, near 16 km/h morning peak), the lowest on record. In 2020, amid the pandemic, it was nearly 24 km/h. De Grange stressed: “Los buses del Transantiago/RED están operando con la peor velocidad en toda su historia” and pledged detailed analysis for efficiency improvements under President Kast's mandate.
