Grey Power says it is surprised and relieved by a $9 million boost in funding for the SuperGold card public transport scheme.
The Government is increasing funding for the free off-peak travel scheme for senior citizens to $45 million over the next two years.
However, it will cut reimbursements for transport operators and regional councils from 75% to 65%.
Transport Minister Steven Joyce says most transport operators have told him the reduction is reasonable.
Grey Power president Roy Reid says the group had expected some cuts after it was announced in March that the scheme would be reviewed.
He says the increase has restored his faith in the Government.