Chicagoland’s Metra commuter railroad and Chicago Transit Authority (CTA), the area’s rapid transit and bus service provider, last month proposed 2025 operating budgets of $1.135 billion and $2.16 billion, respectively. The proposals were signed off by the Boards on Nov. 13. They now await approval by the Regional Transportation Authority (RTA), which oversees finances, secures funding, and conducts transit planning for Metra, CTA, and Pace in the Northeast Illinois counties of Cook, DuPage, Kane, Lake, McHenry, and Will.
The Metra Board of Directors OK’d the 2025 operating budget of $1.135 billion that the railroad said “holds fares steady at current levels and relies on strong sales tax revenues and a dwindling allotment of federal COVID-relief aid to cover the expected growth in expenses.” It also approved a $366.4 million capital plan that it said “continues major investment in bridges, stations, and new and rehabilitated rolling stock.” (Download operating budget and capital program below.)
Metra on Oct. 10 reported that its operating budget includes about $65 million in costs associated with a capacity expansion on the Metra Electric Line for the Northern Indiana Commuter Transportation District, which NICTD is covering. Excluding those costs, the budget is about 4.1% higher than the 2024 budget, largely due to expected inflationary, contractual and market increases, according to the commuter railroad. Additionally, the operating budget includes more spending related to new regulations and related training, upgrades to Metra’s Positive Train Control safety system related to heightened cybersecurity risks, and increased costs related to marketing.
Metra said the budget is funded by system-generated revenue of $304.1 million, including $184.2 million in fares, based on a projection that ridership will grow about 7% in 2025 to 39 million passenger trips. It also is funded by $592.5 million in regional sale tax receipts and $238.4 million out of Metra’s remaining $331.8 million in federal COVID-relief funding; relief funding is expected to run out at Metra, CTA and Pace in 2026. “Lawmakers in Springfield are aware of the impending problem and have begun to work on potential solutions,” Metra said.
Metra also set out a $366.4 million capital program, allocating $93.8 million to rolling stock; $101.8 million to bridges, track and structures; $39.2 million to signal, electrical and communication; $57 million to facilities and equipment; $34.9 million to stations and parking; and $39.8 million to support activities. The capital program, it said, is funded with $242.3 million in federal formula funding, $29 million in federal Congestion Mitigation and Air Quality funds, $88.6 million in state PAYGO funds, and $6.5 million in RTA Innovation, Coordination and Enhancement (ICE) funds.
The plans were the subject of public feedback, including hearings on Nov. 6 and 7, before the Metra Board voted Nov. 13.
“After the major fare policy and fare purchasing changes that we asked our customers to accept in last year’s budget, our proposal for 2025 could be classified as ‘status quo,’” Metra Executive Director/CEO Jim Derwinski said when the operating budget and capital program were proposed in October. “But unless the Legislature solves the fiscal cliff that’s looming in our 2026 budget, we may look back on the 2025 version as the calm before the storm.”
The Chicago Transit Board on Nov. 13 signed off on the CTA’s $2.16 billion operating budget for 2025 (see above).
“We are setting a course for a transit system that surpasses our service delivery, ridership levels and quality from 2019,” CTA President Dorval R. Carter Jr. said. “This budget reinforces our commitment to modernize the CTA, both in terms of service and infrastructure, while keeping our riders’ needs at the forefront. Our employees have been essential to CTA’s progress, and with this budget, we will continue to strengthen our workforce, improve accessibility and expand services.”
The approved budget reflects an 8.1% increase (or $161.1 million) over 2024’s budget. Key initiatives include ongoing workforce recruitment and training to maintain elevated service levels, especially during peak hours, and implementing enhanced customer communication tools, according to CTA. The agency is also earmarking $3.3 million (or 5% of the Security budget), which will be used to solicit community input for the development of future pilots aimed at improving public safety.
When the operating budget was announced in October, CTA said it would keep fares at current levels, deliver more rail and bus service hours than provided in 2019, and fuel new and ongoing investments to either expand or modernize existing infrastructure. The budget would be supported by $455.95 million in system-generated revenue, $1.12 billion in public funding, and $578.7 million in federal relief funding.
CTA, plus regional transit agencies Metra and Pace, are facing a post-pandemic fiscal cliff—a $730 million combined budget shortfall expected in FY2026—the transit agency reported last month. “This deficit is a direct result of an inadequate state funding formula, passed in 1983, that has been further exacerbated by the ridership and revenue declines caused by the COVID-19 pandemic,” CTA said last month. “While there has been increased public transit funding since 1983, many of those funding changes have not kept up with the cost of employee wages and pension payments which required systemwide service cuts in the past to afford. Despite the financial challenges, the CTA continues to look for ways to operate more efficiently and effectively, while also lobbying and appealing elected officials to reimagine how public transit is funded. With a new funding formula and support for transit equity from elected officials, CTA can make transformational change in terms of how it supports and provides transit service in the Chicago region.”
CTA’s separate 2025-2029 Capital Improvement Program calls for $6.96 billion over the next five years for the modernization and improvement of its physical infrastructure—tracks, rail stations, buses and trains, facilities and technologies.
Highlights include:
- Red and Purple Modernization (RPM) Phase One: Substantial completion of Phase One project work in 2025, which includes the reconstruction of the Lawrence, Argyle, Berwyn, and Bryn Mawr Red Line stations and adjacent track structures.
- Red Line Extension (RLE): Work to extend CTA’s busiest rail line to the southern City limits is anticipated to begin in 2025. This project is slated to provide improved transit access and connectivity to the Far South Side of Chicago.
- All Stations Accessibility Program (ASAP): In 2025, CTA plans to open six newly accessible stations: Lawrence, Berwyn, Bryn Mawr, and Argyle as part of the Red Purple Modernization (RPM) Phase One Project; Racine as part of the Forest Park Branch Rebuild; and the Austin on the Green Line. Further, approximately $37 million in funding has been secured for systemwide elevator replacement work, which is also expected to begin in 2025.
- Rail and Bus Fleet Modernization: Increased production of the 7000-series–CTA’s newest generation of railcars; ongoing quarter-life overhauls of the agency’s 5000-series; and the continuation of efforts to gradually update facilities to support electric bus operation.
- Operations Control and Training Facility: Advancement of plans to construct a new facility in the West Garfield Park neighborhood to house CTA’s 24/7 control center, which oversees all bus, rail, and power operations, as well as more than 250 employees. The facility will also serve as the primary training center for CTA’s workforce of more than 10,000 employees.
A public hearing on the plans was held Nov. 7.
Separately, CTA in October announced the launch of an agency-wide strategic planning process, which will be informed by rider, stakeholder, and Chicago-resident input.
CTA said it has identified three goals to guide the planning process:
- “Develop a coordinated, proactive framework for decision-making, policy development and strategic investments.
- “Articulate a clear, direct vision for riders, employees, elected officials and other stakeholders on future investments and objectives for transit in the region.
- “Establish specific outcomes and metrics for progress guided by principles of equity, sustainability, accessibility, and rider and employee experience.”
CTA has begun the public engagement process by seeking input from policy experts, elected officials, business leaders, community-based organizations, transit advocates, and sister agencies.
With the launch of a new website, the public is invited to share opinions and sign up to receive future updates on planning process engagement opportunities. Additional community forums and listening sessions will be scheduled through spring 2025, according to CTA, which said it also plans to solicit feedback from employees and vendors via an internal survey and employee forums. The “Powering Our Transit Future” strategic plan is expected to be released in second-half 2025.
“As we drive progress on CTA’s immediate priorities for frequent, reliable and safe transit services, we must also lay the groundwork for the agency’s long-term future,” Dorval R. Carter Jr. said. “For CTA to meet its commitment to Chicago communities, it must achieve unquestionable status as a rider-centric organization, a trusted community partner and an employer of choice. We look forward to partnering with riders and other stakeholders across the region in developing on a bold, equitable, pragmatic and detailed plan to deliver a world class transit system for all.”
