Chicago Transit Board approves CTA operating budget and capital plan backed by new state funding

The Chicago Transit Board approved a $2.23 billion operating budget for the Chicago Transit Authority (CTA), which doesn’t raise fares, avoids layoffs, enhances existing services, adds vehicle cleaning measures and more for the agency. The operating budget is $75 million—or 3.2%—more than the 2025 budget.

“This budget builds upon the tremendous progress we’ve made over the past year and sets us on a path towards continued growth,” said CTA Acting President Nora Leerhsen. “Getting to this point is the culmination of our commitment to delivering the kind of transformational public transit service that our region has never experienced before. I want to thank our dedicated workforce, our community of riders and transit advocates and state and local elected officials for their support, and I look forward to working together as we chart a vibrant transit future in the years to come.”

Due to the funding uncertainty the agency faced earlier this fall, CTA proposed three funding options it could use depending on its projected revenue:

• Budget A – Baseline budget assumed typical state funding levels that solely address the existing structural funding gap.
• Budget B – Growth budget that fixes the funding disparity and allows CTA to close its budget gap, plus make investments to deliver services being requested by riders.
• Budget C – Reduced budget that has no additional funding to address the structural funding gap, resulting in a significant cut to service.

These scenarios were created off the potential funding CTA could receive pending the outcome of ongoing legislative efforts in Springfield last month. With the passage of Senate Bill 2111 (SB2111), and with direction from the Chicago Regional Transit Authority (RTA), CTA passed Budget A, which fills the current operating budget gap in 2026. The agency says it is seeking an amended budget for all service boards in the region to recognize the additional funding from SB2111. The funding, according to the agency, would enable transit in the region to begin delivering now on the investments riders have been seeking.

The budget passed features progress on investments and reflects feedback CTA received from thousands of riders who took part in new agency outreach events.

Among the projects and initiatives CTA riders can expect in 2026 with the current budget include:

• Enhanced customer experience:
  
  • Refresh and Renew: The CTA facility improvement program will include additional customer-facing improvements such as landscaping, benches designed for children and more station art.
  • Chatbot phase 2: Reporting non-emergency matters and accessing real-time information via the CTA chatbot will be more personalized through additional artificial intelligence (AI) investments. The upgrades will enable the chatbot to more readily understand customer reports, requiring fewer follow-up questions. It would also collect more details about incidents to increase resolution rates and provide more details and information on service.
• Enhanced cleaning measures: CTA looks to build on the expansion of cleaning personnel added through the last years. In 2026, CTA will be piloting the deployment of mid-line railcar cleaning practices to address cleanliness issues that occur after trains have been in service for several hours. This will complement a cleaning routine that includes daily cleanings of every vehicle and station, plus monthly deep cleans and power-washing.
• Expanded accessibility initiatives and outreach: To further expand accessibility to transit and the experience of riders with disabilities, CTA is expanding focus on this work, including front-line employee training on accessibility and supporting disabled riders; strengthening existing partnerships and building new ones among disability community advocates.
• Focus on Equitable Transit Orientated Development (ETOD) and transit policy: To redefine CTA’s role in driving more large-scale ETODs around transit hubs, CTA will create two positions focused on cross-agency transit policy strategies, initiatives and community-based partnerships that promote and leverage transit to connect people to opportunities.

With an amended budget enshrining the transit funding for the region, CTA plans to build on these investments, plus it will also make service enhancements, including additional 24/7 rail service and expanding the Frequent Bus Network.

Also approved by the Chicago Transit Board was the agency’s $6.75 billion five-year (2026-2030) Capital Improvement Program (CIP), which focuses on projects that improve safety, reliability, accessibility, equity and meeting regulatory requirements. This includes the following projects and initiatives:

• Red Line Extension: Start of work to extend the line from 95th to 130th Street.
• All Stations Accessibility Plan (ASAP): Design and construction for the next series of rail stations to enhance accessibility.
• Elevator and escalator replacements: Upgrading aged elevators and escalators throughout the system.
• Bus system powering: Engineering assessments and design plans for converting the bus system infrastructure to fully electric or other zero-emission technologies.
• Bus facility conversions: Initial construction efforts for converting bus facilities fully electric or other zero-emissions technologies.
• Bus turnaround improvements: Construction and rehabilitation of select bus turnarounds.
• Rail heavy maintenance facility renovations: Upgrades to facilities where heavy repair and overhaul work is performed on CTA series railcars.
• New vehicle purchases: Acquisition of up to 446 new railcars as planned under options for the 7000-Series railcar contract. The purchase of over 200 new buses, electric or other zero-emission buses.
• Fleet overhauls: Overhauling approximately half of the existing rail fleet and over a quarter of the bus fleet.
• Replacement of heavy-duty vehicles and equipment: Replacing over-age heavy-duty vehicles and shop equipment used for transit operations support.

Also part of the capital program will be the creation of a newBlue Line Forest Park Modernization Program Office that will work in partnership with the Illinois Department of Transportation (IDOT) and the Chicago Metropolitan Agency for Planning (CMAP) through the joint I-290 Eisenhower Expressway/Blue Line Corridor Development Office to create an infrastructure plan for the 13-mile long corridor along I-290 expressway and the Forest Park Blue Line branch. The goal of the new office would be to advance planning efforts and have various aspects of work shovel ready as funding become available.

Although a new state funding bill has passed, the CTA says it remains steadfast in maintaining its status as one of the most efficient transit agencies in the country. CTA further notes that it continues to seek savings and revenue growth wherever possible through efficiencies such as investments in technology, procurement management programs, labor efficiencies, fare collection enhancement, fuel and power advanced purchases, growing ancillary revenue and others.