CHICAGO — State lawmakers passed a $1.5 billion funding package early Friday to avoid massive service cuts and layoffs at the CTA, Metra and Pace.
The Regional Transportation Authority — which oversees the three transit agencies — had been staring down a $202 million budget gap in 2026. The funding bill fills that gap — and makes changes to how the transit agencies are overseen, including eliminating the RTA.
“This funding means that there will be no layoffs or service cuts,” acting CTA President Nora Leerhsen said in a statement. “With these funds, we will expand our bus and rail service, invest in new technologies, and implement new strategies to support our riders and employees.”
This bill, dubbed the Northern Illinois Transit Authority Act, is expected to provide $860 million per year to support public transportation operation by redirecting the state’s sales tax revenue on motor fuel purchases, according to Capitol News Illinois. It’s also expected to divert another $200 million to public transit via the interest collected through the state’s road fund, which is often used for road construction projects.
The bill would also make drivers of passenger vehicles on northern Illinois’ toll roads pay 45 cents more per toll.
An earlier version of the bill was quickly shot down by Gov. JB Pritzker for proposing a statewide entertainment tax and taxing billionaires on unrealized gains.
But Pritzker applauded the passage of the bill Friday, saying, “Illinoisans deserve a world-class transportation system that connects communities across regions.”
“The legislation makes important changes to how Illinois operates and manages our transportation network, including investing in new capital projects that will make our public transit and tollways more modern, efficient and reliable for riders,” Pritzker said in a statement.
State Rep. Eva-Dina Delgado, the bill’s sponsor, said the bill’s passage provides for sustainable funding that will make the region’s transit system safer and more reliable.
“With this bill, we are saying no to kicking the can down the road and bringing an end to an era of patchwork solutions and bureaucratic dysfunction,” Delgado said in a statement. “This bill puts transit riders first, pairing real investment in the system with significant governance reform so that we can build for the future with oversight we can trust.”
State Rep. Kam Buckner, another sponsor of the bill, said those that tried to derail the passage of the bill “performed premature autopsies” and declared it “dead before its time.” But those supportive of the bill stayed the course and won.
“Transit is not just a Chicago issue; it’s a statewide economic engine,” Buckner said. “It connects downstate manufacturers to urban markets, suburban workers to opportunity, and every community in between to the promise of growth and mobility.”
The bill will replace the RTA with the Northern Illinois Transit Authority, which will oversee regional transit systems and be granted more power to set universal fares, services standards and schedules so the “region operates on a one-network, one-timeable, one-ticket model for transit users.”
The Northern Illinois Transit Authority board of directors would have 20 members. Five will be appointed by the mayor of Chicago, five by the governor, five from the Cook County Board president and one from each of the five collar counties.
The bill also restructures the seven-member Chicago Transit Board, reducing the number of people the governor and mayor can appoint. Under the bill, Chicago’s mayor will appoint three members, the governor will appoint two members and the Cook County Board president will now appoint two members. Currently, the mayor appoints four members to the board and the governor appoints three.
The new rule takes effect Sept. 1.
RTA spokesperson Melissa Meyer said the passage of the bill “provides the stable funding and governance reforms needed to protect transit service for the millions who ride CTA, Metra and Pace — and the thousands of frontline workers who keep our region moving.”
“Riders want transit that is safe, reliable and frequent,” Meyer said. “This transformational investment of more than $1 billion in new operating funding lays the groundwork to improve service, shorten travel times and enhance rider experience across the region.”
Metra spokesman Michael Gillis said the agency looks forward to “working with lawmakers, our fellow transit agencies, and all stakeholders to meet the promise of this significant legislation and establish the world-class system” that riders deserve.
”This legislation ensures that Pace can not only maintain service but also enhance it. With this new investment, we are poised to deliver more service, increased frequency, expanded bus-on-shoulder operations, new bus rapid transit corridors and innovative solutions to meet growing demand,” said Pace Executive Director Melinda Metzger. “This is a bold new chapter for Pace and for transit across northeastern Illinois. We are ready to build on our momentum and make our riders and communities proud.”
Last week, transit workers and labor leaders warned if state lawmakers didn’t act soon it would cause the elimination of 1,700 positions at the CTA and trigger a 22 percent reduction in services.
“This investment in our public transportation is going to protect people’s jobs,” Mayor Brandon Johnson told WGN on Friday. “It’s going to make sure that we are fully funding a system that quite frankly has been underfunded for a very long time.”
The Labor Alliance for Public Transportation, a coalition group that has worked in Springfield to bring funding to the region, said the passage of the bill was “a hard-won victory for everyone who wants safer, reliable and more efficient public transit.”
“From visits to the capitol to countless conversations at bus stops and train platforms, working people led the charge to demand a sustainable future for public transportation,” the group said in a statement. “This success is the result of tireless advocacy and compromise among union transit workers, riders and diverse stakeholders — one built on a shared commitment to Illinois’ future.”
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