Bloomington Transit had a service area of the City of Bloomington until 2023.
In August 2023, the Bloomington City Council passed an ordinance expanding the official service area of Bloomington Transit from the city's boundaries to include all of Monroe County. The action of the City Council reflects the transportation needs of growing population and employment centers beyond City limits, and authorizes Bloomington Transit to establish new services to meet those needs.

Additional funds raised through the Economic Development Local Income Tax (ED LIT) allocated to Bloomington Transit enable the agency to leverage local funds for a greater share of federal discretionary grant programs. To date, the agency has secured over $7 million in federal grants for the continued electrification of the BT fleet, using the additional ED LIT funds as local match.

Over $19 million in Economic Development Local Income Tax (ED LIT) funds are committed to Bloomington Transit for a five-year period. This funding allows the transit system to upgrade service and provide new transit options in the community.

A Bus Rapid Transit feasibility and corridor analysis study is being conducted in 2024 to examine the 3rd Street corridor for a more robust transit service. That service could mean frequent times for bus arrivals, larger waiting areas for passengers, and faster transit service from one side of Bloomington to another. Public feedback will be key in identifying how this transit service would operate in the community.

Public-Private Partnerships (PPPs) are contracts Bloomington Transit has entered into with housing complexes in the community. These partnerships provide privately subsided bus service and carry Indiana University students to campus. This service is also available to the public to use.

The introduction of microtransit service started with late night service offered through rides provided by Uber and Lyft. The transit system continues to look at the expansion of microtransit service in the community using Bloomington Transit vehicles and staff as the demand for more individualized travel increases.

Battery-Electric buses (BEBs) are scheduled for purchase as the system replaces diesel vehicles with a goal to be 60% electric by 2030 and 100% electric by 2050. Sixteen vehicles are scheduled over the next several years in part due to the securement of $11 million in federal funds.

A recent technology assessment was conducted of the transit system with a number of deficiencies identified. In order to improve operation of the transit system and increase customer satisfaction with bus tracking information, Bloomington Transit is upgrading its CAD/AVL system including bus tracking and introducing upgraded mobile payments.

With the increase in Battery-Electric buses as well as staff, Bloomington Transit is studying the expansion of the current facilities located on Grimes Lane. New infrastructure will be needed for housing and charging buses as well as maintaining the fleet.