Illinois lawmakers have approved a $1.5 billion public transit funding bill, bridging severe transit budget gaps across the state. The package includes a sweeping transit overhaul, making major changes to the state’s transit system for the first time in five decades by establishing a new transit authority to oversee operations.
The public transit reform bill is the result of a year-long debate over how best to ensure the bill covers the needs and projected budget shortfalls for public transportation agencies. The approved budget will ensure the agencies will have the funds needed to maintain operations without cutting 40% of services.
The Regional Transportation Authority (RTA), Chicago Transit Agency (CTA), Metra commuter rail and Pace Suburban Bus faced a collective $230 million shortfall in 2026. The deficit was expected to grow to $834 million in 2027 and $937 million in 2028. The bill will support public transportation agencies without requiring a large increase in statewide taxes.
To provide the funding, the public transit reform bill will redirect $860 million in state motor-fuel sales tax and $200 million from the state Road Fund. These appropriations will directly support transit projects, dividing them with 85% going toward the Chicago region and 15% to downstate systems. The reallocated funding would have traditionally gone toward supporting road and street infrastructure projects.
While tax changes needed to facilitate the bill won’t be extraordinary, residents should expect existing sales taxes in select areas to increase between .25% and 1.25%. Toll roads will also have their prices increased by 45 cents per toll.
One of the major shifts in the makeup of transit agencies hinges on the establishment of the Northern Illinois Transit Agency (NITA). NITA will replace the RTA and assume responsibility over the CTA, Metra and Pace. Composed of a 20-member board, the new agency will consolidate fare policy, service planning, capital investment decisions and transit operational oversight.
Other new agencies and acts established through the bill include:
- The Office of Transit Safety and Experience – a multi-agency transit law enforcement task force.
- A transit ambassador program to support riders.
- The Interagency Coordinating Committee, dedicated to improving transit innovation and intercity connectivity.
- The People Over Parking Act, which prohibits local governments from instituting minimum parking requirements near transit corridors and hubs.
Photo by Cameron Casey from Pexels
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