Illinois lawmakers pass public transit funding bill to address RTA budget gap

SPRINGFIELD, Ill. (WLS) — The Illinois General Assembly passed a bill Friday morning to fill a budget gap for public transit.

The The Northern Illinois Transit Authority (NITA) Act comes as the RTA faced a budget gap of more than $200 million.

State lawmakers approved new funding for public transportation agencies without large statewide tax increases previously proposed.

Instead, the measure would be fueled by revenue sources that currently feed the state’s Road Fund and an increased sales tax targeted to the Chicago area.

The bill frustrated some lawmakers outside the Chicago area because of provisions that reroute money from the broader funding source of infrastructure projects.

The House voted 72-33 to pass Senate bill 2111 around 2:15 a.m. on Friday with only Democrats supporting the plan.

“That system has been running on borrowed time,” bill sponsor Rep. Eva-Dina Delgado, D-Chicago, said. “Fragmented governance, uneven investment and post-COVID ridership losses have left transit struggling with unreliable service, delayed trains, canceled routs and a looming fiscal cliff that’s threatening to derail it all without action.”

The Regional Transportation Authority, Chicago Transit Agency, Metra commuter rail and Pace Suburban Bus collectively face a $230 million funding shortfall in 2026 as pandemic relief money runs out. The funding deficit is projected to grow to $834 million in 2027 and $937 million in 2028. Without action in Springfield to plug that gap, the transit agencies have said they could be forced to cut services by 40%.

Republicans pleaded with the Democratic sponsors to pull the bill given the funding shortfall for the Chicago Transit Authority wouldn’t hit until the middle of 2026. But after more than a year of negotiations, Democratic leaders were ready to put the issue to rest.

The Senate followed with a 36-21 vote in favor of the bill around 4 a.m., concluding more than a year of negotiations.

“We are changing our public transit system for the first time in five decades to be safe, to be reliable, to be accessible, to be integrated; making sure that we got the performance and we got the funding that’s needed to make a system of the next level,” Sen. Ram Villivalam, D-Chicago, said.

The plan goes to the governor’s desk without any of the controversial statewide taxes on package deliveries, streaming or event tickets that were part of previous bills. The House two days earlier had introduced a measure that taxed entertainment and billionaires’ investments – ideas Gov. JB Pritzker quickly shot down.

The bill got back on track on Thursday following a day of negotiations between stakeholders, lawmakers and the governor’s office.

How it’s funded

The bulk of the funding, $860 million, would come through redirecting sales tax revenue charged on motor fuel purchases to public transportation operations. Another estimated $200 million would come from interest growing in the Road Fund – a state fund that is typically used for road construction projects but can also be used for transportation-related purposes under the state constitution.

The plan calls for raising the existing Regional Transportation Authority sales tax by 0.25 percentage points, to 1% in Lake, McHenry, Kane, DuPage and Will counties and 1.25% in Cook County. That tax hike will generate $478 million.

Drivers of passenger vehicles on northern Illinois’ toll roads will also have to pay 45 cents more per toll as part of a plan to create a new capital program for tollway projects. It will also increase by inflation each year. That will raise up to $1 billion annually, Marc Poulos, executive director of Local 150, told the House Executive Committee Thursday evening.

A coalition of labor unions that had generally opposed using Road Fund money for public transportation supported the latest bill.

“It is, you know, just vitally important that we keep 15,000 people in transit working,” Illinois AFL-CIO President Tim Drea, who led the labor coalition, told Capitol News Illinois. “Overall, it was a good bill that that we needed.”

The bill also calls for 25% of the systems’ revenue to come from fares. Historically, half of the funding was generated by the riders, but that requirement became unsustainable after the pandemic.

“The 50% fare box recovery ratio is way out of whack if you compare to other agencies, similarly situated agencies across the country,” Delgado said.

The bill and its associated tax and toll increases would not take effect until June 1.

Republicans feel slighted

Funding for downstate public transportation agencies, which face their own funding challenges as a sales tax-based formula becomes less lucrative, are set to receive $129 million annually – below the $200 million they had hoped for.

The move to direct most of the funding to the Chicago area left Republicans frustrated.

“I’m actually not thrilled that we are continuing on this transit bill, although I am happy that my constituents aren’t going to be stuck with ridiculous taxes,” Rep. Regan Deering, R-Decatur, said. “But I just can’t continue to vote for a piece of legislation that’s screws them anyway.”

Downstate lawmakers also worried the bill tapping into Road Fund money removed a critical funding source for road construction projects.

“This transit funding bill creates a perverse incentive … to not diminish the balance of the Road Fund, not get projects out of the door … but continue to build up big balances in the Road Fund,” Rep. Ryan Spain, R-Peoria, said.

New transit board part of reforms

The reforms in the proposal are similar to what the Senate passed in May.

The bill would create the Northern Illinois Transit Authority, which would be a stronger version of the RTA and would have the ability to establish a universal fare system and coordinate scheduling between the three service agencies.

The board would be comprised of 20 members: five appointed by the mayor of Chicago, five by the Cook County Board president, five by the governor and five collectively by Lake, McHenry, DuPage, Kane and Will counties. That makeup has drawn criticism from some suburban leaders who fear it will limit their ability to affect public transportation decisions.

Sen. Don DeWitte, R-St. Charles, the Senate Republican’s transit leader, spoke in support of using interest from the road fund to pay for public transportation.

It would also create a law enforcement task force that will target hot spots for public safety issues on the transit systems. Other roles will be tasked with deescalating conflicts or seeking to address homelessness and mental illness – issues that can sometimes escalate into public safety issues.

The bill also blocks transit agencies from transferring operating dollars to capital expenses – a controversial move Metra recently proposed in its 2026 budget that raised red flags for several state lawmakers and RTA leaders.

The RTA said in a statement, “The passage of SB2111 is a landmark moment for public transit in Illinois. This 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. 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. The bill also changes the region’s transit governance, transitioning the RTA to the Northern Illinois Transit Authority (NITA) and creating new requirements to coordinate service, plan strategically, and better support riders.

“We are grateful to leaders including Governor JB Pritzker, Representative Eva-Dina Delgado, Representative Kam Buckner, and Senator Ram Villivalam for their commitment to this issue over the past several years. We also want to thank the tireless members of the advocate community, our labor partners, and especially riders, whose voices have ensured that transit will not only survive but thrive.

“We are continuing to review the bill and will share more in the days ahead, including how this impacts the 2026 budget process. But today marks a turning point: A commitment to the stronger, more seamless transit system the Chicago region deserves.”

PACE Chairman Rick Kwasneski. said in a statement “We are deeply grateful to the legislators who recognized the essential role public transportation plays in connecting communities and improving lives – and who understood the devastating impact that a lack of new funding would have had on our passengers, our employees, and our regional economy.”

“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.”

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Labor Alliance for Public Transportation said in a statement, “The Labor Alliance for Public Transportation celebrates the passage of SB2111 HA3 – a hard-won victory for everyone who wants safer, reliable, and more efficient public transit in our state. This comprehensive legislation implements sensible reforms and fully funds our transit agencies to avert a devastating fiscal cliff, preventing service cuts to the Chicago Transit Authority (CTA), Pace, and Metra.

“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. 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.

“We appreciate Governor Pritzker, Senate President Harmon, Speaker Welch, State Senator Villivalam, Leader Delgado, and Leader Buckner for their leadership. We thank the General Assembly for their work to strengthen public transit with reform and sustainable funding.”

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of print and broadcast outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.

WLS-TV contributed to this report