Leaders from Illinois’ Regional Transportation Authority (RTA) on Aug. 21 shifted millions of dollars from Metra and Pace “to help forestall 40% Chicago Transit Authority (CTA) service reductions” as the agency faces an imminent fiscal crisis, according to a Daily Herald report.
According to the report, RTA directors also discussed fare increases and caps on a “popular but over-budget rideshare program for passengers with disabilities—amid objections.”
A $771 million shortfall dubbed the “fiscal cliff” is projected next year when COVID-19 funding dries up, although that number is “fluid,” the Daily Herald reports. “Without a bailout, the RTA warns 40% systemwide reductions will occur; the CTA would be the first agency to run out of cash, followed by Metra and Pace.”
According to the report, about $73 million including discretionary sales tax revenues and Innovation, Coordination and Enhancement grants will be transferred from Metra and Pace to the CTA, which will last into the second quarter.
All agencies will see their RTA funding increase in 2026, staff said, although the CTA will get “the lion’s share,” according to the Daily Herald report.
“The transit system is intertwined and major cuts to one agency impact the whole,” RTA Chairman Kirk Dillard of Hinsdale noted.
“If you have a Pace bus show up at a Metra station and there’s no Metra train, that’s a problem,” he said. “We’re one region—all three service boards (need) to be working as one system, more today than ever.”
According to the Daily Herald report, the RTA board “unanimously approved 2026 funding levels for the agencies including the redistribution. It also voted to amend Pace paratransit funding with the assumption that rides on the Taxi Access and Rideshare Access programs will be capped at 30 a month per passenger and fares will increase to $3.25 in October.”
Currently, passengers with disabilities can take up to eight rides a day on TAP and RAP. Numerous riders told the board the new limit would be “devastating,” and that traditional paratransit “can take hours,” according to the report.
TAP was created more than 20 years ago and covers Chicago; RAP, which uses Uber and UZURV, kicked off in 2024 regionwide and became hugely popular, the Daily Herald reports.
The two represent “one of the most flexible and subsidized programs” in the U.S., Dillard said. He added, “the state of Illinois drastically underfunds mandated ADA paratransit services,” and urged riders to contact legislators with their concerns.
According to the report, the programs let certified ADA/paratransit passengers pay the first $2 of any trip. Pace covers the remainder up to $30, with riders paying costs exceeding $30, plus tips and surcharges.
The higher fares and 30-ride limit would generate about $8 million but that still leaves a $45 million paratransit budget deficit, according to the Daily Herald report.
The RTA, according to the report,” intends to plug the hole with reserves and sales tax revenues but also will divert about $17 million in Innovation, Coordination and Enhancement grants notably from the CTA and Metra.”
RTA leaders also asked staff to work with Pace to see if exceptions to the caps could be allowed in the case of riders going to work, for example, according to the Daily Herald report.
On Aug. 13, more than 200 riders, advocates, and other stakeholders met virtually with the RTA for the eighth quarterly Transit in the Answer Coalition meeting and discussed the 2026 budget process, “how peer regions are addressing their fiscal cliffs, and HB 3438, the funding and reform bill that passed the Illinois Senate during the General Assembly’s spring legislative session but was not called for a vote in the House.”
RTA staff presented the feedback gathered at the Coalition meeting to the RTA Board at their Aug. 21 meeting.
RTA also launched the Regional Transit Fiscal Cliff Hub last month, which will be updated frequently with links, upcoming meetings, ways to get involved, and more. It also summarized the 2026 budget process.
Governor Pritzker and legislative leaders say they “intend to continue to work on transit funding and reform through the summer and into the fall, but a firm timeline has not been set for any future action.” The General Assembly’s fall veto session is set to be held October 14-16 and October 28-30.
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