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September 8, 2025|Passenger

Reports: Judge Orders Service Restoration, Allows Fare Hikes at SEPTA (UPDATED 9/8)

Written by Marybeth Luczak, Executive Editor
(Photograph Courtesy of SEPTA)
(Photograph Courtesy of SEPTA)
A Philadelphia judge on Sept. 4 ruled that SEPTA must “‘immediately reverse all service cuts,’ which began last month as the transit agency faces a significant financial shortfall and the state budget has not yet allocated funds amid a monthslong budget stalemate,” according to The Philadelphia Inquirer.

The newspaper reported that Judge Sierra Thomas-Street’s “order applies to route cuts, service reductions, and staffing reductions”; SEPTA is also “barred from implementing any new cuts.”

This order covers bus routes, Regional Rail and special services like Sports Express, and the transit agency must also stop station closures and any Paratransit route eliminations or reductions, according to 6abc.

Judge Thomas-Street did allow SEPTA “to move ahead with a fare hike of 21.5%,” 6abc reported. “That increase was supposed to go into effect earlier this week, but was postponed” per her Aug. 29 ruling.

SEPTA Map (Courtesy of the transit agency)

The judge did not provide an opinion explaining the rationale behind her decision, which The Inquirer noted “is a typical practice in the Philadelphia Court of Common Pleas.”

According to 6abc, Thomas-Street’s decision “stems from a lawsuit filed against SEPTA,” arguing that the transit agency’s cuts “were not equitable and put low-income riders and minorities at a disadvantage.”

SEPTA has not decided if it will file an appeal, spokesperson Andrew Busch told The Inquirer. “‘We’re evaluating our legal options,’ he said, adding that the transit agency plans to comply with the judge’s order … [and] hasn’t set a date yet for restoring service or raising fares.”

Late on Sept. 5, 6abc reported that SEPTA had released a timeline on fare hikes. “The 21.5% fare increase will take effect Sept. 14 and is expected to generate about $31 million annually, according to SEPTA General Manager Scott Sauer,” the media outlet reported. “To temporarily restore service, SEPTA is requesting $394 million from PennDOT’s [P]ublic [T]ransit [T]rust [F]und,” it continued. “Sauer said the money, typically reserved for capital projects, would be used to maintain operations for two years.”

“This is not a solution,” said Sauer, according to 6abc. “This is a band-aid that will get us through a couple of years, but at the expense of future capital programming.” The request was necessary because of “the ongoing state budget impasse,” according to 6abc.

“Governor Josh Shapiro’s office said it is reviewing the funding request and determining next steps,“ the media outlet reported; “if approved, SEPTA said all services will be fully restored on Sept. 14.“

On Sept. 8, CBS News Philadelphia reported that the Governor signed off on “SEPTA’s plan to use capital project money to fund daily operations for the next two years, meaning the transit authority’s ‘doomsday’ service cuts will be reversed and a 21.5% fare increase will take effect Sunday [Sept. 14].”

According to CBS, Gov. Shapiro “directed PennDOT Secretary Mike Carroll to flex $394 million from” the Public Transit Trust Fund and directed SEPTA “to address its structural challenges and report to PennDOT every 120 days the steps taken and progress made to increase efficiencies within the system.”

Sauer had said “that tapping into the fund would allow SEPTA to get through the rest of 2025 and all of 2026,” according to CBS. The media outlet also reported that SEPTA will appeal Judge Thomas-Street’s order.

“We are grateful to the Governor and our legislative delegation, and all of our advocates, for their tireless efforts to rally for transit funding,” Sauer said in a statement. “We are urging all parties to continue to work towards an agreement on a transit funding plan that preserves the service our customers and region deserve.”

According to SEPTA, transferring capital funds to cover operating expenses, “with no commitment to replace them, is not a sustainable long-term solution to SEPTA’s current budget crisis.” Using capital funds for daily operations, it said, means these resources are not available “to support infrastructure rehabilitation, vehicle replacements and other much-needed projects.” SEPTA’s current 12-year Capital Program adopted in June already requires $1.6 billion in infrastructure and vehicle projects to be delayed, it noted.

Like transit agencies across the country, SEPTA has faced a budget gap due to a combination of the end of federal COVID-relief funding and increases in the day-to-day costs of providing service to riders. The federal COVID funds helped SEPTA maintain service for essential workers through the pandemic. While ridership has recovered over the past few years, SEPTA has said it has take on additional costs to address “emerging challenges—particularly crime, disorder, and the vulnerable population,” and “to grapple with the impact of inflation on everyday necessities such as fuel, power, and supplies.” In response, SEPTA has reported that it has been cutting costs and generating new revenue. “Aggressive” austerity measures, including a freeze on management pay and cuts to third-party consultants, have resulted in savings of $30 million, according to SEPTA. Other measures, such as an earlier fare increase and the resumption of paid parking at Regional Rail lots, are generating new revenue. Together, the transit authority said, these efforts have helped reduce its budget deficit from $240 million, reported last fall, to the forecasted $213 million.

In a related development, SEPTA on Sept. 4 reported that Moody’s Ratings had revised its outlook from stable to negative for the transit agency but did not change any of its “currently positive ratings for SEPTA’s debt” (download the Moody’s report below).

Rating_Action-Moodys-Ratings-affirms-03Sep2025-PR_909351765Download

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