UPDATED: SEPTA moves forward with full service restoration, fare increases

Updated 09/10/25

Starting Sept. 14, the Southeastern Pennsylvania Transportation Authority (SEPTA) will restore all services that were previously cut due to the agency’s ongoing budget deficit. SEPTA was previously issued a court order Sept. 4 that required the agency to halt all service cuts that went into effect Aug. 24, as well as prevent any additional planned cuts.  

The service restoration comes on the heels of the Pennsylvania Department of Transportation (PennDOT) approving a one-time flex of $394 million in state capital assistance funds to help cover operating costs. These funds will allow the agency to bring back the 20% bus and Metro service cuts that started on Aug. 24. 

However, SEPTA also plans to move forward with its 21.5% system-wide fare increase for all SEPTA modes and fare products, raising the base fare price to $2.90—the same cost as a one-way fare for the New York City subway.  

“This is not the long-term funding solution we need to address our $213 million budget deficit, but over the last two weeks, we have seen the devastating effects of the service cuts on our customers,” said SEPTA General Manager Scott Sauer. “Our riders deserve better, and they deserve stability.” 

According to the agency, during the week of Aug. 25 when initial service cuts were implemented, over 4,400 people were left behind at bus and trolley stops due to crowded vehicles caused by less service. SEPTA notes the amount of late bus trips was up by more than 26% compared to typical conditions 

The funds approved by PennDOT will be used to support operations, and additional revenue from the fare increase will help avoid service cuts for the next two years. SEPTA will also be able to implement its new bus network and support major events in 2026.  

However, as noted by both PennDOT Secretary Mike Carroll and Sauer in letters requesting and approving the state funds, the use of capital assistance dollars is not a long-term solution, and the agency still requires a more permanent solution. SEPTA also notes that without any plans to replace the $394 million, there will be less funding available to support critical infrastructure upgrades, vehicle replacements and other projects. 

“We are grateful to the governor and our legislative delegation and all of our advocates for their tireless efforts to rally for transit funding,” Sauer said. “We are urging all parties to continue to work towards an agreement on a transit funding plan that preserves the service our customers and region deserve.” 

09/08/25

The Southeastern Pennsylvania Transportation Authority (SEPTA) must cease and desist all ongoing route cuts and service reductions, as well as any planned cuts and reductions, according to a court order.  

NBC10 Philadelphia obtained the order issued Sept. 4 by Common Pleas Court Judge Sierra Thomas-Street, which stated that SEPTA must halt “service cuts, including bus route eliminations, Regional Rail eliminations, service reductions, special service eliminations, curfews, paratransit route eliminations or reductions and station closures.”  

The order sides with the plaintiffs who are suing SEPTA. In a lawsuit filed Aug. 27, the plaintiffs argued “SEPTA’s service cuts will disproportionately impact minority and economically disadvantaged communities.” 

Notably, the judge’s order does not prevent SEPTA from implementing its planned fare increases. However, the order also states that the authority must discontinue “any and all other actions currently underway or soon to be underway in connection with the service cuts,” including layoffs and furloughs.  

This most recent court order follows a ruling issued Aug. 29 that prevented SEPTA from moving forward with its 21.5% fare increase and 20% Regional Rail service cut that was planned for Monday, Sept. 1.  

SEPTA financial future still uncertain 

While the court order prevents the anticipated “doomsday spiral,” the authority is still left with addressing its $213 million recurring budget deficit. SEPTA has attributed the deficit due to a combination of federal COVID-19 relief funding drying up and increased day-to-day operations costs.  

The authority has explained that while ridership has increased in recent years, costs have also increased due to challenges such as crime, disorder and vulnerable populations. SEPTA has said it also grapples with the impact of inflation on everyday necessities such as fuel, power and supplies. 

With these challenges in mind, on Sept. 3, Moody’s Ratings revised its outlook for the authority from stable to negative due to “constraints on SEPTA's ability to balance its budget amid the commonwealth of Pennsylvania's protracted budget impasse,” as well as the above court ruling. However, Moody’s affirmed its Aa3 ratings on SEPTA’s “$501 million of Asset Improvement Program revenue bonds and $42 million Public Transportation Assistance Fund revenue bonds,” as well as “the A3 ratings on the authority's $138 million outstanding capital grants receipts bonds.” 

In a statement issued Aug. 28, SEPTA General Manager Scott Sauer said the authority remains hopeful the state Legislator will come to a funding agreement. 

“We are continuing to work with [Pennsylvania] Gov. [Josh] Shapiro and legislative leaders as they negotiate a funding solution,” Sauer said. “It was encouraging to see proposals from the House and Senate earlier this month that share a number of points of agreement. We are urging everyone to continue to build on this common ground in an effort to get a transit funding agreement done.”