Metra Board approves 2026 operating budget and capital plan

The Metra Board of Directors approved a $1.2 billion operating budget for 2026, relying on new state funding without requiring a fare increases or service cuts. Also approved by the board was the $515.3 million capital plan, advancing major investments in bridges, stations and new and rehabilitated rolling stock.

After the agency introduced its 2026 budget in October, the Illinois Legislature approved reforms and significant new funding for public transportation in northeast Illinois, including Metra. The legislative move was prompted by the impending ending of federal COVID-relief funding that Metra had been using to balance budgets since the pandemic. The agency says it expects its COVID funding to run out in the fourth quarter of next year.

The new funding allowed Metra to prevent a possible fare increase and fund modest service increases while still covering an expected $27.9 million shortfall. The revised budget also keeps Metra from a planned $60 million transfer from the operating budget to its capital plan.

The $1.2 billion budget includes $55 million for costs related to a Northern Indiana Commuter Transportation District (NICTD) project that aims to expand capacity on the Metra Electric Line—funds that are being reimbursed by NICTD. The budget for operations is about $50 million higher than the 2025 budget, excluding the additional NICTD funding. The cost jump is due to expected inflationary, contractual and market increases; modest service increases; successful filling of vacancies; and higher costs related to UP and BNSF service.

The budget is comprised of funds from system-generated revenue of $305.1 million, including $187.9 million in fares. It also is funded by $635.9 million in regional sales tax receipts, Metra’s remaining $206.1 million in federal COVID-relief funding and $27.9 million in new funding. 

The $515.3 million capital program is funded by $426.7 million in federal formula funding and discretionary grants, $88.6 million in Illinois PAYGO funding and $100,000 in a Chicago Regional Transportation Authority (RTA) Access to Transit grant. The program sets $268.2 million aside for rolling stock; $68.5 million for bridges, tracks and structures; $59.1 million for signals, electrical and communications; $27.3 million for facilities and equipment; $59.9 million for stations and parking; and $32.3 million for support activities.

Now that the budget has been approved by the Metra Board of Directors, it goes to the Chicago RTA for its final approval.