Illinois General Assembly passes transit funding overhaul bill, saving CTA, Metra and Pace from fiscal cliff

The Illinois General Assembly passed the Northern Illinois Transit Authority Act, a bill intended to modernize the governance of transit in the region, avoid service cuts and invest in the transit systems throughout the region.

The bill anticipates establishing $1.5 billion in funding, with over $800 million coming from redirected sales tax revenue on motor fuel purchases for transit operations. About $200 million more is expected to come from growing interest in the road fund, which is typically used for road projects but can be put towards other transportation-related purposes.

The new legislation also establishes the Interagency Coordinating Committee on Transit Innovation, Integration and Reform, an oversight committee that will be run out of the Illinois Department of Transportation (IDOT) to advise on strategies and initiatives to aid in the improved integration of intercity bus and rail networks in the state outside of the Northeast Illinois region.

The committee will develop and utilize data-driven strategies to improve transit safety and interagency coordination downstate. It will also guide IDOT on its Public Transportation Plan and on the Blue-Ribbon Commission on Transportation Funding and Policy, the second of which seeks out ways for the agencies to find permanent replacements for relief funding streams. 

The legislation will also form the Transit Integrated Policy Development Committee in an effort to embed transit design policy into highway planning. That move aims to identify transit corridors, integrate bus priority lanes, advise on bus-on-shoulder designs and how intercity bus routes could connect to highway project.

Further, the legislation reforms the Chicago Regional Transportation Authority (RTA). It does this by updating the composition of the Metra and Pace Bus boards to improve regional representation, introduces a service standards-based funding system that’s set to launch in fiscal year 2033 and implements interim funding formulas for the proceeding five years that keep the agencies from funding losses while things are reorganized. The legislation also mandates the implementation of a transparent prioritization process for capital projects and expands paratransit funding while developing strategies to sustain it into the future.

The new legislation doesn’t immediately create a new funding stream or tax but instead reallocates existing state and local transit revenues to finance the plan, while also implementing mechanisms for possible new future funding streams like congestion pricing, mobility fees or state support increases. It also aims to identify ways to capture more federal infrastructure grant funding through the committees it establishes.

The bill has passed the legislature and currently awaits signature from Illinois Gov. JB Pritzker, which he’s signaled he will give. In a statement from the governor, he notes that Illinoisans “deserve a world-class transportation system.”

“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,” Gov. Pritzker said. “I am pleased the legislation also avoids new broad-based state taxes on Illinois working families. Instead, it directs existing state revenue streams to flow towards public transit systems while enabling independent bodies like the Regional Transportation Authority and Tollway Board to decide how to best meet their users’ needs.”

Furthermore, the legislation has the support of the transit agencies. The Chicago Transit Authority (CTA) issued a statement sharing what the bill means for it.

“CTA will be fully funded. This funding means that there will be no layoffs or service cuts. 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. Today, CTA’s workforce levels and service delivery rates are higher than they have been in years—and we stand ready to take on this historic investment and take CTA to even greater heights,” said CTA President Nora Leerhsen in a statement.

Pace Suburban Bus (Pace) leadership also expressed their support for the bill.

“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,” said Pace Board Chair Rick Kwasneski. 

Pace Executive Director Melinda Metzger added, “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. 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.”

The Chicago RTA furthered the position, extending thanks and informing it would share updates to its upcoming budget soon.

“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,” the Chicago RTA statement read. “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.”

There’s no detail as to when the bill may be signed by the governor, though changes would take effect on June 1, 2026.