Chicago-area transit agencies began operating under a new regional authority Sept. 1, putting the focus of Illinois’ transit overhaul squarely on the Chicago region and its suburban network. The Northern Illinois Transit Authority, or NITA, now coordinates the Chicago Transit Authority, Metra commuter rail and Pace Suburban Bus across six counties.
NITA replaced the Regional Transportation Authority as the regional overseer for transit. CTA, Metra and Pace continue to run their own trains and buses, but NITA has broader authority to set common policies and direct the region toward a more integrated system.
NITA also replaces the RTA’s governing board. The new 20-member board includes five appointees each from the governor, Chicago mayor and Cook County Board president, along with five members jointly selected by the chairs of DuPage, Kane, Lake, McHenry and Will counties. CTA, Metra and Pace retain their own leadership and operating responsibilities, making the change one of regional oversight and funding rather than a merger of the three agencies.
The change came after years of financial warnings. CTA, Metra and Pace faced the end of federal pandemic relief while fare revenue remained below pre-pandemic levels. In 2025, the agencies warned that a projected operating shortfall could force service reductions of as much as 40 percent, including rail and bus cutbacks, fewer Metra trains and the possible loss of Pace weekend service.
Illinois lawmakers responded with Senate Bill 2111, approved in the fall 2025 veto session and signed by Gov. JB Pritzker in December. The law creates an estimated $1.5 billion in recurring transit revenue, primarily by redirecting sales-tax revenue from motor-fuel purchases to transit operations, directing interest from the state Road Fund toward transit and raising the regional sales tax. It also reduces the share of transit revenue that agencies must generate from fares from 50 percent to 25 percent.
That funding allowed CTA, Metra and Pace to approve 2026 budgets without the previously expected cuts or fare increases. It also established NITA, giving the new body authority to develop a universal fare system and coordinate schedules across the region’s separate transit networks.
Illinois has made major transit capital commitments before. The 2019 Rebuild Illinois program provided the Chicago-area transit system with $2.6 billion in new bonding authority over five years and an estimated $227 million annually in dedicated pay-as-you-go capital funding.
Rebuild Illinois already helped fund a substantial round of work across the Chicago-area system. CTA’s 2021-25 capital plan totaled $3.4 billion, including about $980.9 million in state support tied to the 2019 program. The plan identified $327.8 million to advance the Red Line Extension, $78 million for station accessibility improvements, $60 million for the Cottage Grove Green Line station and $50 million for Blue Line O’Hare Branch power upgrades. It also included new rail cars, electric buses and initial station and track work for the Red and Purple Modernization program.
The latest transit legislation is different from Rebuild Illinois. Rebuild Illinois was principally a capital push. SB 2111 is principally an operating rescue and governance overhaul, though it also advances selected capital projects.
The law prevents transit agencies from shifting operating dollars into capital expenses. The provision followed concern over Metra’s proposed transfer in its 2026 budget while the system faced an operating gap and possible service reductions. The policy is intended to keep the new revenue focused on daily service, staffing, and operations; capital work must rely on separate bonds, appropriations, or grants.
For vendors, the work ahead falls into five principal areas:
- Regional fare collection, data integration and schedule coordination.
- Transit safety, including ambassadors, security technology, de-escalation and social-service partnerships.
- Active and planned CTA rail work, including the Red Line Extension, Red and Purple Modernization, stations and bridge repairs.
- Pace bus rapid transit corridors and zero-emission bus fleet and garage upgrades.
- Passenger rail and transit-oriented development, including downstate rail studies and redevelopment around agency-owned land.
The most significant new regional technology project is likely to be the universal fare system. The law calls for the system to be implemented by early 2030 and requires a coordinated regional service plan by 2029. The work could require account-based payment systems, mobile ticketing, payment security, customer support, fare-policy analysis, ridership data tools and technology capable of linking CTA, Metra and Pace back-office systems.
NITA’s regional safety agenda is another potential services market. SB 2111 creates a law-enforcement task force to address safety hot spots and anticipates roles focused on de-escalation, homelessness and mental health concerns. Potential vendors include transit ambassador providers, security and incident-reporting technology companies, dispatch firms, training providers and social-service partners.
Several major physical projects are already moving forward. On Chicago’s Far South Side, CTA’s Red Line Extension will run 5.5 miles from the existing 95th/Dan Ryan terminal to 130th Street. The project includes four new accessible stations near 103rd Street, 111th Street, Michigan Avenue and 130th Street, along with bus, bicycle, pedestrian and park-and-ride connections.
The Red Line Extension is already under construction. The immediate market is likely to center on subcontracting, utility relocation, station equipment, civil work, pedestrian and roadway access improvements and real-estate activity around future stations. CTA estimates the project could generate $1.7 billion in real-estate activity within the project area through 2040.
On the North Side, CTA’s Red and Purple Modernization program remains active as its first phase nears completion. Utility work, paving, curbs and public-space improvements beneath the elevated tracks were continuing this year in Uptown and Edgewater. CTA has also begun a planning study for future modernization phases, creating a longer-term market for planning, engineering and community-engagement firms.
The legislation also identifies smaller CTA-related projects. Capitol News Illinois reported that the law appears to require NITA to rebuild the long-closed Central Avenue Blue Line station in the Austin neighborhood and renovate or build a new Green Line stop in Englewood. It also permits NITA to share the cost of Green Line bridge repairs in Oak Park. Those projects do not yet have announced schedules, budgets or procurement plans.
Pace has several corridor and fleet projects that could generate near-term work. Its Pulse 95th Street Line, linking CTA’s 95th/Dan Ryan Red Line station with Moraine Valley Community College in Palos Hills, received federal environmental approval and entered final design in 2025. The project is fully funded for design and construction through a federal Congestion Mitigation and Air Quality grant.
The 95th Street line will add modern stations, accessibility upgrades, real-time arrival information, transit-signal priority and a queue jump to help buses move through traffic. Pace plans to start service in 2030.
Other Pulse bus rapid transit corridors are at earlier stages. The proposed Harlem Avenue line, serving west and southwest Cook County, is in its project-definition phase. The Cermak/22nd Street line, a roughly 14-mile route from CTA’s Pink Line station in Cicero to Yorktown Center in Lombard, has entered environmental review. It would include stations, bus lanes, signal priority, queue jumps and accessibility improvements. Pace’s current target is 2031 service, following detailed design and construction.
Pace is also moving toward a fully zero-emission fleet by 2040 through its Project Zero initiative. Its North Division garage in Waukegan is intended to become a zero-emission-only facility by 2027. The agency has funded design and construction to prepare River Division for electric buses and paratransit vehicles, while a new Northwest Division facility in Wheeling is being built with future zero-emission capability.
Pace estimates the complete transition will cost about $2.5 billion, including approximately $1 billion for vehicles and $1.5 billion for upgrades to 10 garages. Because much of that funding has not been identified, the scale and timing of future contracts will depend on federal, state and local funding decisions.
Outside the Chicago area, the law allows the Illinois Department of Transportation to use up to $476.7 million from two downstate public-transportation funds for new passenger rail routes from Chicago. The Quad Cities/Moline project is the most developed possibility, but it still depends on an agreement with Iowa Interstate Railroad, which operates the needed tracks. The law also directs studies for potential Peoria and Kankakee service.
Finally, SB 2111 gives transit agencies authority to buy, build, own, operate or maintain housing and commercial projects near transit. NITA must identify agency-owned parcels suitable for transit-supportive development, while a related state policy eliminates municipal parking minimums near certain transit hubs and frequent-service corridors.
Photo by Tim Gouw from Pexels
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