Taxpayers could be left to pick up a £1.5 million-per-year bill to pay for under 22s to ride Edinburgh Trams free of charge, after it emerged agreement has still not been reached between the council and Scottish Government.
Edinburgh City Council's SNP leader Adam McVey said discussions on extending Scotland's new young persons bus concessionary scheme to include light rail are "ongoing".
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The local authority already pays for free tram travel for the over-60s and disabled satire card holders living in Edinburgh.
Speaking at the annual budget meeting last month, Cllr McVey announced a last-minute decision to move £2 million initially set aside for the proposed scheme into the council's financial reserves.
Transport for Edinburgh (TfE) boss, George Lowder, told councillors in December it was estimated the city's trams network would lose around £1.5m a year if no national funding was secured.
Mr Lowder added the financial impact would worsen once the network's extension through Leith and Newhaven opens next year.
Councillors subsequently passed a motion tabled by the Greens' Alex Staniforth for the council to write to Transport Scotland and Scottish Finance Secretary Kate Forbes urging the government to cover youngsters' tram fares.
Councillor Staniforth also warned that refusal to provide funding could "put other councils off from investing in those methods of public transport" and lead to a "two-tier system of public transport".
But three months on, plans remain up in the air.
Council leader Adam McVey said this week: “Discussions with Transport Scotland and the Scottish Government are ongoing. The amount of money required to fund this year-on-year is significant so we need to continue to work with Edinburgh Trams, Transport Scotland and the Scottish Government to find a way forward.”
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Cllr Claire Miller, transport spokesperson for Edinburgh's Green Party group, called for ministers to provide "proper funding to deliver transport policies".
She said: “It’s great that young people are able to get on the bus for free now, and I celebrated along with them when it was launched in January.
"But the reality is that people use both trams and buses to get around Edinburgh, and we’re opening the tram to Newhaven soon too, so if the government is serious about helping young people to get around on public transport then it needs to work with the council not against us.”