Chicago RTA, New Orleans RTA approve 2026 budgets 

The Chicago Regional Transportation Authority (RTA) and the New Orleans RTA have introduced new budgets for their systems.  

Chicago RTA Board adopts 2026 regional transit operating budget, 2026-2030 capital program 

The Chicago RTA Board adopted the agency’s 2026 regional transit operating budget and 2026-2030 capital program following the signing of Senate Bill 2111 by Illinois Gov. JB Pritzker on Dec. 16 that will bring an estimated $1.2 billion in new annual operating funding to the region. 

“For the first time in years, the RTA is not preparing for a looming crisis, but instead optimistic for the opportunities ahead,” said Chicago RTA Executive Director Leanne Redden. “This is a historic investment that will protect the essential service of today and lay the foundation for the transit of tomorrow.” 

The 2026 budget includes $4.32 billion in operating expenses for Northeastern Illinois’ transit systems and a 2026-2030 Regional Capital Program of $9.25 billion. The budget features no fare increases and no service cuts, but also supports improvements in reliability, safety, frequency and cleanliness while positioning the system for larger changes ahead. 

“The transit system arrives at this moment because riders, transit operators, advocates, local leaders, business and civic institutions and elected officials insisted that transit is essential to the region’s future,” said Chicago RTA Board Chair Kirk Dillard. “Thank you to everyone who fought for transit over the last five years and those who helped get a solution across the finish line. In doing so, Illinois became one of the only states in the nation—alongside New York—to take decisive action to structurally avert the post-pandemic fiscal cliff facing many large legacy transit systems. The Chicago region now can set an important example across the country, showing what public transit can be with proper investment.” 

Chicago RTA required each service board to identify additional efficiencies this year. Pace identified $21.7 million in annual savings through service efficiencies, office space consolidation and converting the South Division garage. The Chicago Transit Authority (CTA) identified up to $70 million in efficiencies, cost avoidance savings, and sustainable revenue growth in areas like scheduling and advanced data usage. Metra identified approximately $25 million in efficiencies for 2026, with a focus on fuel efficiencies, as well as administrative and operational cost savings. 

The Northern Illinois Transit Authority (NITA) Act reorganizes the region’s transit systems under a new regional authority that replaces Chicago RTA  on June 1, 2026 and takes on new responsibilities, including setting fares, enhancing and coordinating service, overseeing long-term capital planning and leading implementation of unified rider-focused tools such as more seamless mobile ticketing.   

Chicago RTA says the NITA Act calls for improvements that will take time to develop and execute, but planning for many of them will get underway in 2026: 

• Affordability improvements such as the development of a unified fare system to make traveling across CTA, Metra and Pace simpler, along with income-based fare programs and fare capping will ensure riders do not pay more because of when or how they travel. 
• Capital planning and prioritization will be coordinated regionally to align investments with the greatest impact on reliability, accessibility and future demand. 
• Safety improvements, including establishing a regional transit ambassadors program, hiring a chief transit safety officer and forming a NITA Law Enforcement Task Force will explore best practices for improving security on the system. 
• Accessibility improvements like the establishment of a regional Dial-A-Ride program, development of a Language Access Plan and forming an ADA Advisory Council will ensure the needs of all riders are being heard. 
• Accountability standards for CTA, Metra and Pace will directly tie funding to performance through a service standards model that measures metrics such as on-time performance, ridership, equipment failure rates, crowding, cleanliness and customer satisfaction. 
• Regionally coordinated service planning will improve connections between modes and operators and minimize gaps in service across the region. 

The authority says the new initiatives, which will help the region meet objectives on safety and accessibility, could cost between $240 million to $310 million when fully implemented, which would come out of the regional operating budget in future years. 

Capital Program makes significant infrastructure investments 

The 2026 budget also details the 2026-2030 Regional Capital Program of $9.25 billion in planned improvements focused on returning the system to a state of good repair, making all stations accessible, transitioning to zero-emissions and providing limited expansions and upgrades. 

Major investments include funds for the CTA Red Line Extension, modernization of Metra’s rolling stock and bridges, electrification of CTA and Pace’s bus fleets and facilities and continued work to make all CTA and Metra rail stations accessible. 

According to the authority, the 10-year regional capital funding need is $44.6 billion. Chicago RTA has calculated that it would take an annual investment of $4 billion per year over the next 20 years to bring the system into a state of good repair and additional funds are needed to expand and improve the existing system. The current five-year program averages less than $2 billion per year. The NITA Act does include new capital revenue in the form of interest on the Road Fund balance, which means an additional $180 million for the RTA region annually. That increase is not reflected in the 2026 budget but will be added to the program through the capital budget amendment process in 2026.  

New Orleans RTA Board approves $225.2 million 2026 operating and capital budget 

The New Orleans RTA Board of Commissioners approved its $225.2 million 2026 operating and capital budget. 

“This budget reflects our commitment to delivering reliable, world-class transit while being responsible stewards of public resources,” said RTA Board of Commissioners Chair Fred Neal, Jr. “Even in a tightening economic climate, [New Orleans] RTA continues to invest in improved service delivery, better-maintained vehicles and enhanced rider amenities. I am proud of the collaboration that brought us to a balanced plan for 2026.”   

Key 2026 budget features include:  

Stable operations in a tight revenue environment 

• Fiscal year 2026 (FY 26) operating expenses remain relatively flat year-over-year, with increases driven primarily by insurance and mandatory retirement costs. 
• Preserves current service levels, workforce strategically right-sized—from 894 to 871 full-time employees—protecting essential operations while controlling long-term costs. 

 Conservative revenue forecasting  

• Sales tax projections remain conservative due to uncertainty in tourism and broader economic conditions. 
• Modest increases in ridership are projected. Hotel–Motel tax revenue is expected to improve slightly following recent legislation. 

 Use of reserves to maintain service  

• The FY26 budget anticipates using approximately $14 million in reserves to balance operations—consistent with the reserve fund’s intended purpose and far below depletion levels. 
• New Orleans RTA continues active work with city and state partners to strengthen long-term revenue sources for public transit. 

Major federal-funded capital investments move forward  

New Orleans RTA continues to execute a capital program built largely on competitive federal grants that support modernization and state-of-good-repair needs, including:   

• Algiers Ferry Terminal construction and accompanying barge replacement 
• Bus rapid transit design and early stakeholder engagement  
• Streetcar System Modernization Master Plan 
• Universal accessibility study and ADA gap-closure strategy 
• Charging infrastructure for incoming battery-electric buses 
• Downtown transit center design and six regional mobility hubs 
• Bus engine and transmission overhaul program supporting fleet reliability 

“These capital projects are not cosmetic,” said New Orleans RTA CEO Lona Edwards Hankins. “They are strategic investments in reliability, safety, accessibility and long-term cost control. Federal grant funding allows us to modernize the system while minimizing the impact to our operating budget.”