The Lakewood Student Transportation Authority (LSTA) has cut its newly announced fee for non-mandated student transportation, backing away from a $945 annual charge which sparked an intense backlash and led to fears that the entire system could collapse.

With the fee now reduced, the Igud Hamosdos has reversed course and are asking parents to opt in to transportation.

In a message distributed to local schools, the Igud said the reduction followed meetings and discussions with the LSTA, local and state government officials and askanim, saying the goal was to ensure that busing for the upcoming school year could begin on time.

“At this point, our recommendation has changed,” the message said, instructing schools to advise parents to opt in for transportation. The new recommendation replaces the previous direction to take no action.

The $290 fee, which is on top of the original $385 fee, is due immediately.

There are approximately 13,650 non-mandated children attending Lakewood area schools.

The LSTA’s online portal will be open from 2 p.m. this afternoon, while its office would remain open until 10 p.m. for walk-in assistance.

The fee reduction comes amid growing concern in Lakewood over the impact of the loss of municipal funding for non-mandated busing. The funding was eliminated after the state significantly reduced municipal aid to Lakewood as part of the fiscal year 2027 state budget, as well as a decision from the Trump administration to deny New Jersey’s FEMA application which could have recouped $6.5 million of the 8 million dollars the township spent on snow removal and cleanup after last winter’s snow storms.

However, the underlying funding issue remains unresolved.

While the LSTA’s decision may allow the consortium to continue operating, it does not restore the government funding that previously supported the program.

That leaves Lakewood facing a larger question about how non-mandated transportation will be financed in future years.