Illinois lawmakers recently approved $1.5 billion in new funding for public transportation agencies “without large statewide tax increases previously proposed,” according to a Capitol News Illinois report.
According to the report, the measure would instead be “fueled by revenue sources that currently feed the state’s Road Fund and an increased sales tax targeted to the Chicago area.”
The bill, Capitol News Illinois reports, frustrated some lawmakers outside the Chicago area “because of provisions that reroute money from the broader funding source of infrastructure projects.”
The House voted 72-33 to pass Senate bill 2111 around 2:15 a.m. on Friday, Oct. 31, “with only Democrats supporting the plan,” according to the report.
“That system has been running on borrowed time,” bill sponsor Rep. Eva-Dina Delgado, D-Chicago, said. “Fragmented governance, uneven investment and post-COVID ridership losses have left transit struggling with unreliable service, delayed trains, canceled routs and a looming fiscal cliff that’s threatening to derail it all without action.”
According to the report, the Regional Transportation Authority (RTA), Chicago Transit Agency (CTA), Metra commuter rail and Pace Suburban Bus collectively face a $230 million funding shortfall in 2026 as pandemic relief money runs out. The funding deficit, Capitol News Illinois reports, is projected to grow to $834 million in 2027 and $937 million in 2028. Without action in Springfield to plug that gap, the transit agencies have said they could be forced to cut services by 40%.
Republicans, according to the report, “pleaded with the Democratic sponsors to pull the bill given the funding shortfall for the CTA wouldn’t hit until the middle of 2026. But after more than a year of negotiations, Democratic leaders were ready to put the issue to rest.”
The Senate followed with a 36-21 vote in favor of the bill around 4 a.m. on Oct. 31, concluding more than a year of negotiations.
“We are changing our public transit system for the first time in five decades to be safe, to be reliable, to be accessible, to be integrated; making sure that we got the performance and we got the funding that’s needed to make a system of the next level,” Sen. Ram Villivalam, D-Chicago, said.
According to the report, the plan goes to the governor’s desk “without any of the controversial statewide taxes on package deliveries, streaming or event tickets that were part of previous bills. The House two days earlier had introduced a measure that taxed entertainment and billionaires’ investments—ideas Gov. JB Pritzker quickly shot down.”
The bill, Capitol News Illinois reports, got back on track on Thursday following a day of negotiations between stakeholders, lawmakers and the governor’s office.
According to the report, the bulk of the funding, $860 million, would come through “redirecting sales tax revenue charged on motor fuel purchases to public transportation operations.” Another estimated $200 million would come from “interest growing in the Road Fund—a state fund that is typically used for road construction projects but can also be used for transportation-related purposes under the state constitution.”
The plan, Capitol News Illinois reports, calls for raising the existing RTA sales tax by 0.25 percentage points, to 1% in Lake, McHenry, Kane, DuPage and Will counties and 1.25% in Cook County. That tax hike will generate $478 million.
Drivers of passenger vehicles on northern Illinois’ toll roads will also have to pay 45 cents more per toll as part of a plan to create a new capital program for tollway projects, according to the report. It will also increase by inflation each year. That will raise up to $1 billion annually, Marc Poulos, Executive Director of Local 150, told the House Executive Committee Thursday evening.
A coalition of labor unions that had generally opposed using Road Fund money for public transportation supported the latest bill, according to the report.
“It is, you know, just vitally important that we keep 15,000 people in transit working,” Illinois AFL-CIO President Tim Drea, who led the labor coalition, told Capitol News Illinois. “Overall, it was a good bill that that we needed.”
The bill, Capitol News Illinois reports, also calls for 25% of the systems’ revenue to come from fares. Historically, half of the funding was generated by the riders, but that requirement became unsustainable after the pandemic.
“The 50% fair box recovery ratio is way out of whack if you compare to other agencies, similarly, situated agencies across the country,” Delgado said.
The bill and its associated tax and toll increases would not take effect until June 1, according to the report.
Funding for downstate public transportation agencies, “which face their own funding challenges as a sales tax-based formula becomes less lucrative,” are set to receive $129 million annually—below the $200 million they had hoped for, according to the Capitol News Illinois report.
“The move to direct most of the funding to the Chicago area left Republicans frustrated.”
“I’m actually not thrilled that we are continuing on this transit bill, although I am happy that my constituents aren’t going to be stuck with ridiculous taxes,” Rep. Regan Deering, R-Decatur, said. “But I just can’t continue to vote for a piece of legislation that’s screws them anyway.”
Downstate lawmakers, according to the report, “also worried the bill tapping into Road Fund money removed a critical funding source for road construction projects.”
“This transit funding bill creates a perverse incentive … to not diminish the balance of the Road Fund, not get projects out of the door … but continue to build up big balances in the Road Fund,” Rep. Ryan Spain, R-Peoria, said.
Sen. Don DeWitte, R-St. Charles, the Senate Republican’s transit leader, “spoke in support of using interest from the road fund to pay for public transportation,” according to the report.
The reforms in the proposal, Capitol News Illinois reports, are similar to what the Senate passed in May.
“The bill would create the Northern Illinois Transit Authority (NITA), which would be a stronger version of the RTA and would have the ability to establish a universal fare system and coordinate scheduling between the three service agencies.
“The board would be comprised of 20 members: five appointed by the mayor of Chicago, five by the Cook County Board president, five by the governor and five collectively by Lake, McHenry, DuPage, Kane and Will counties. That makeup has drawn criticism from some suburban leaders who fear it will limit their ability to affect public transportation decisions.
“It would also create a law enforcement task force that will target hot spots for public safety issues on the transit systems. Other roles will be tasked with deescalating conflicts or seeking to address homelessness and mental illness—issues that can sometimes escalate into public safety issues.
“The bill also blocks transit agencies from transferring operating dollars to capital expenses—a controversial move Metra recently proposed in its 2026 budget that raised red flags for several state lawmakers and RTA leaders.”
“Early this morning, the Illinois State Legislature passed a bill that provides a transformational level of funding for the CTA,” CTA Acting President Nora Leerhsen said in a statement. “As a result of this bill, CTA will be fully funded. This funding means that there will be no layoffs or service cuts. With these funds, we will expand our bus and rail service, invest in new technologies, and implement new strategies to support our riders and employees. Today, CTA’s workforce levels and service delivery rates are higher than they have been in years—and we stand ready to take on this historic investment and take CTA to even greater heights.
“As CTA’s acting president, leading the 11,400 employees who provide our riders with one million rides per day, I am incredibly thankful to our state legislative leaders, the Chicago Transit Board, the leadership of Amalgamated Transit Union Locals 241 and 308, transit advocates and others for their dedication to advocating for funding in Springfield over the last several years. I’ve had the privilege of working with many of these dedicated individuals during this process and have seen first-hand their commitment to securing a better, stronger financial future for our agency.
“CTA is excited for the bright future that lays ahead, and we extend our deepest appreciation to everyone who’s worked so hard to support public transit in the Chicago region.”
“The passage of SB2111 is a landmark moment for public transit in Illinois,” RTA said in a statement. “This bill provides the stable funding and governance reforms needed to protect transit service for the millions who ride CTA, Metra, and Pace—and the thousands of frontline workers who keep our region moving.
“Riders want transit that is safe, reliable, and frequent. This transformational investment of more than $1 billion in new operating funding lays the groundwork to improve service, shorten travel times, and enhance rider experience across the region. The bill also changes the region’s transit governance, transitioning the RTA to the NITA and creating new requirements to coordinate service, plan strategically, and better support riders.
“We are grateful to leaders including Governor JB Pritzker, Representative Eva-Dina Delgado, Representative Kam Buckner, and Senator Ram Villivalam for their commitment to this issue over the past several years. We also want to thank the tireless members of the advocate community, our labor partners, and especially riders, whose voices have ensured that transit will not only survive but thrive.
“We are continuing to review the bill and will share more in the days ahead, including how this impacts the 2026 budget process. But today marks a turning point: A commitment to the stronger, more seamless transit system the Chicago region deserves.”
“Illinoisans deserve a world-class transportation system that connects communities across regions, drives economic growth, and helps every resident—no matter where they live—access transit to live, work, and enjoy the state,” said Gov. Pritzker in a statement. “I am grateful for the work by leaders in both chambers of the Illinois General Assembly in taking steps to make this vision a reality.
“The legislation makes important changes to how Illinois operates and manages our transportation network, including investing in new capital projects that will make our public transit and tollways more modern, efficient, and reliable for riders. I am pleased the legislation also avoids new broad-based state taxes on Illinois working families. Instead, it directs existing state revenue streams to flow towards public transit systems while enabling independent bodies like the Regional Transportation Authority and Tollway Board to decide how to best meet their users’ needs.
“I want to thank Senator Villivalam and Representatives Delgado and Buckner for their leadership working on this legislation. I look forward to signing it into law and ensuring fiscal responsibility, fairness across the state’s transportation networks, and world-class transit that keeps Illinoisans moving forward.”
