In a significant move to enhance public transportation in Illinois, state lawmakers have recently approved new funding measures that do not rely on large statewide tax increases, which were previously proposed. Instead, this new legislation will be financed through existing revenue sources that currently support the state’s Road Fund, along with an increased sales tax specifically aimed at the Chicago area.
The approval of Senate Bill 2111 by the House, with a vote of 72-33 at approximately 2:15 a.m. on Friday, saw unanimous support from the Democratic party. However, it left some lawmakers from outside Chicago feeling frustrated due to provisions that reroute funds from broader infrastructure projects. Rep. Eva-Dina Delgado, D-Chicago, the bill’s sponsor, emphasized the dire state of the transit system, stating, “That system has been running on borrowed time.” She highlighted issues such as fragmented governance, uneven investment, and post-COVID ridership losses, which have collectively left public transit struggling with unreliable service and a looming fiscal crisis.
The Regional Transportation Authority, Chicago Transit Agency, Metra commuter rail, and Pace Suburban Bus are facing a staggering $230 million funding shortfall projected for 2026, as pandemic relief funds dwindle. This shortfall is expected to escalate to $834 million in 2027 and $937 million in 2028. Without legislative action, transit agencies could be forced to reduce services by as much as 40%, severely impacting commuters across the state.
Despite pleas from Republican lawmakers to reconsider the timing of the bill—arguing that the funding shortfall for the Chicago Transit Authority would not manifest until mid-2026—Democratic leaders were determined to move forward after a year of negotiations. The Senate later echoed this sentiment, passing the bill with a 36-21 vote around 4 a.m., thus concluding over a year of discussions.
The newly approved plan outlines innovative funding strategies to address the public transportation crisis. A substantial portion, amounting to $860 million, will be generated by redirecting sales tax revenue from motor fuel purchases to transit operations. Additionally, around $200 million is expected to come from interest accrued in the Road Fund, which is typically allocated for road construction but can also support transportation-related initiatives under state law.
The legislation also proposes a 0.25 percentage point increase in the existing Regional Transportation Authority sales tax, raising it to 1% in Lake, McHenry, Kane, DuPage, and Will counties, and to 1.25% in Cook County. This tax hike is projected to generate an estimated $478 million. Furthermore, drivers using northern Illinois toll roads will see an increase of 45 cents per toll, contributing to a new capital program for tollway projects. This adjustment is expected to generate up to $1 billion annually, as noted by Marc Poulos, executive director of Local 150.
While the bill aims to secure the future of public transit, it has raised concerns among downstate lawmakers who are set to receive only $129 million annually for their public transportation agencies, falling short of the $200 million they had anticipated. Republican lawmakers expressed dissatisfaction with the allocation of funds primarily directed towards the Chicago area, arguing it undermines the needs of their constituents.
Rep. Regan Deering, R-Decatur, pointed out the bill’s shortcomings, stating, “I’m actually not thrilled that we are continuing on this transit bill... I just can’t continue to vote for a piece of legislation that’s screws them anyway.” Moreover, concerns have been raised regarding the decision to tap into the Road Fund, which may detract from critical funding for road construction projects.
The approved legislation includes significant reforms aimed at improving public transit governance. A new entity, the Northern Illinois Transit Authority, will be established to enhance the effectiveness of the Regional Transportation Authority (RTA). This authority will possess the capability to create a universal fare system and coordinate scheduling among the three service agencies. Comprising 20 members, the board will include appointees from the mayor of Chicago, the Cook County Board president, the governor, and representatives from the surrounding counties.
Additionally, the bill proposes the formation of a law enforcement task force dedicated to addressing public safety issues within the transit systems. This task force will focus on de-escalating conflicts and addressing issues related to homelessness and mental illness—situations that can often lead to safety concerns.
Furthermore, the legislation prohibits transit agencies from reallocating operating funds to capital expenses, a controversial practice that has raised concerns among lawmakers and RTA leaders.
As Illinois moves forward with this new public transportation funding plan, the focus remains on enhancing the reliability and accessibility of transit services across the state. While there are challenges and concerns regarding funding allocations, the legislative decision marks a crucial step toward revitalizing the public transportation system, ensuring it meets the needs of all Illinois residents.
