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Why this is important

When Transit is the Answer was adopted in 2023, funding structures that relied heavily on rider fares were not going to be sufficient to keep transit running at useful levels after federal COVID-19 relief dollars ran out. Additional public funding was critical to supporting a strong transit workforce, averting major transit service reductions, maintaining affordability, and making possible many of the other improvements to improve rider experience.

Updates

Illinois legislators pass landmark transit funding and reform bill, averting fiscal cliff. What does it mean for riders?

November 10, 2025

What is the 'fiscal cliff' and what can be done about it?

December 15, 2022

Understanding capital vs. operating funding and why it matters

February 2, 2023

Fare Recovery Ratio: What it is and why it must be reformed

February 5, 2023

Fully funding paratransit service and reduced fare programs is key to closing the transit budget gap

February 29, 2024

ADA Paratransit budget shortfall explained

August 21, 2025

State support for transit in Chicago trailed peer regions.

State Support for Transit in Chicago Trails Peer Regions

Portion of Operating Budget Covered by State before the NITA Act.

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Input from stakeholder working groups

With an early understanding of the scope and timing of future operating budget deficits, the stakeholder working groups recommended bold actions to increase and diversify funding sources. Many of the specific strategies informed the policy options in the 10-Year Financial Plan memo. Additionally, working groups encouraged RTA and the Service Boards to find new and innovative ways to control expense growth, such as sharing costs through improved coordination, new technologies, and service partnerships with communities. Working group members also stressed the importance of finding new ways to maximize non-farebox system generated revenue.

Advocacy work ahead

The RTA and Service Boards worked together with other stakeholders to execute broad public outreach campaigns of education on transit funding, and in December, Governor JB Pritzker signed the NITA Act into law. The legislation includes an estimated $1.2 billion in new annual operating funding for CTA, Metra, and Pace. This sustainable funding means riders will not experience service cuts or fare increases in 2026 and instead will benefit from continued improvements to service frequency, reliability, and safety in the coming years.

The RTA collaborated with regional partners to identify funding options in advance of the 2025 Illinois General Assembly legislative session. As part of these efforts, the RTA released Transforming Transit, a rider-focused vision for the future of transit enabled by increased funding and reform.

Going forward, the RTA will continue to engage coalition members and the public in efforts to continue building a better system for everyone who relies on it.

 

Develop a funding structure that is less reliant on rider fares
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