NiamhMcGarry

The streetcar is estimated to cost about $421 million and a few years of road blocks. This process of construction has spurred the most opposition as traffic continues to worsen. Many citizens of Omaha have felt the repercussions of the streetcar blocking off a new street almost every week. 

The modern Omaha streetcar has been in the works for about a decade and is expected to be operational by the end of 2028. 

It will cover a three mile route, starting in the Blackstone District and going east on Harney Street. It will then loop around the Capitol District, near Gene Leahy Mall, and will come back west on Farnam Street. 

Nearly 73 years ago, Omaha ripped out its last streetcar tracks. Despite controversy, the city expects to see them back in 2028. 

The first Omaha streetcar was built in 1867, paving the way for development outside of the urban core. It allowed people to move further away from downtown while still maintaining access to their jobs. The modern streetcar aims to spur urban development, bring people back downtown, and attract crowds along the route. 

The original streetcar hit its peak in the 1920s, but gradually lost popularity as buses and cars became the favored source of transportation. The decision to bring it back begs the question: why is the streetcar being built again when we have an efficient bus system and even more cars? 

Just recently, the city launched the Omaha Rapid Bus Transit, better known as the ORBT, which serves as virtually the same mode of transportation just a block over from the route of the future streetcar. However, the ORBT extends further west, going from Westroads mall down to the Capitol District, meaning increased accessibility.

 So, while roads continue to close and traffic heightens, the debate over Omaha’s streetcar progresses: is this the transit development the city needs or a financial gamble? 

It is important to note that the streetcar serves a greater purpose than just transportation: urban development. Its goal is to increase walkability and population density in the downtown area. By constructing the streetcar, people will be able to park in one spot and move around different areas without having to drive, ultimately reducing car usage. 

Alyssa Smith, a member of the communications team for the streetcar, expands on how the idea of a streetcar in Omaha came to be. “Omaha is running out of space to keep expanding outwards… there needed to be a way to create more density in what is already Omaha,” Smith said. 

In the context of other sources of transit, “the goal is to be multimodal: multiple different means of transportation throughout the city,” Smith said. This new mode of transportation is intended to support and amplify existing transportation. “The Metro bus system will still have stops, so people could ride the bus into the urban core, get on the streetcar, and then even use other [modes of transportation] like the bike way or the scooters,” Smith said.

However, not everyone has such a positive outlook on the project. One major concern is the collection of $421 million. Although taxpayers are not directly funding the streetcar, citizens believe there are more pressing issues.

The streetcar is primarily being funded through Tax Increment Financing (TIF), a tool that can fund infrastructure like the streetcar in certain areas. The basic idea of TIF is that the property tax revenue gets frozen at its current value, a portion of the extra tax revenue will fund the infrastructure. In short, it will be “paying for itself” as it generates more value within commercial properties along the route by bringing in more development and people. 

Metropolitans Utilities District’s (MUD) Vice President General Council Mark Mendenhall, senior Lucy Mendenhall’s dad, offers a different outlook on the surrounding effects of the streetcar. “The project has been an enormous challenge for MUD and its construction has created significant problems for residents and businesses in its path,” Mendenhall said. 

Kamp Blackstone, located near 36th and Farnam, has permanently closed its doors as they faced challenges due to construction in the area. Kamp was a small food hall with a rotating lineup of restaurants and also hosted local trivia and bingo nights. 

Though that is not to say that businesses and residents have gone unnoticed by the City of Omaha’s Streetcar team. A future riders passport program was launched Dec. 11, 2025,  continuing through March 31, 2026. The goal of the passport program is to encourage people to visit and support businesses along the route. Those who participate and send their passport back to the City Hall by March 31 are eligible to win prizes, such as a staycation package, date night package, or coffee date package, all of which also include a gift basket. Additional information regarding the passport program can be found on the Omaha Streetcar website. 

Regardless of the controversy, the streetcar is expected to be popular and successful in improving Omaha. Once the streetcar is up and running, it will be free to ride and will allow around 150 people to ride in one cart. “I am hopeful the streetcar has the positive impact [that is] expected [because] a strong and vibrant city needs a healthy urban core,” Mendenhall said.