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Shapiro open to using special transit funding to combat SEPTA cuts as part of broader package
//automotive-transportation.news-articles.net/co .. ombat-septa-cuts-as-part-of-broader-package.html
Published in Automotive and Transportation on Monday, August 25th 2025 at 22:03 GMT by Penn Live🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Governor Shapiro Signals Flexibility on Special Transit Fund to Shield SEPTA from Budget Cuts
In a move that could keep the region’s flagship transit system from a sharp decline in service, Pennsylvania Governor Josh Shapiro announced this week that he is open to tapping the state’s special transit fund as a safety net for the Southeast Pennsylvania Transportation Authority (SEPTA) amid looming budget cuts. The announcement comes as part of a larger “transportation and infrastructure package” that the governor is pursuing with the legislature, and it reflects a growing pressure on state leaders to protect essential public‑service assets while balancing a heavy fiscal deficit.
The Problem: SEPTA’s Fiscal Tight‑rope
SEPTA, which serves Philadelphia and 13 surrounding counties, has long operated at a deficit that requires frequent subsidies from the state. In its most recent financial projections, the agency forecasts a $250‑million shortfall for the 2026‑2027 operating year. That shortfall is the result of a combination of rising fuel costs, declining ridership in the wake of the pandemic, and an anticipated $35‑million cut to the state’s transit appropriation in the next budget session.
The state’s transportation budget for 2026, which was approved last month, includes a 12‑percent reduction in the amount earmarked for public transit. The move is intended to help address a broader budget shortfall of more than $15 billion, but critics argue that it risks crippling SEPTA’s core services, especially along the region’s most heavily used commuter lines.
“SEPTA is a lifeline for millions of residents,” said John McCormack, the agency’s long‑time executive director. “Cutting that service would be a major blow to the economy and to people who depend on reliable public transit.”
Special Transit Fund: A Temporary Lifeline
The special transit fund—established under the 2019 Transit Infrastructure Improvement Act—allocates a one‑time, earmarked appropriation of roughly $400 million that can be used to cover capital‑project shortfalls, operating costs, and other unanticipated transit needs. The fund has traditionally been used to support large projects such as the SEPTA‑wide “New Connections” initiative and the construction of the Valley Forge Extension of the Airport Line.
Shapiro indicated that he is willing to re‑allocate portions of that fund to shore up SEPTA’s operating budget, should the legislature agree to the proposal. In a statement released from the governor’s office, he emphasized that “public transit is an essential service, and we must find a way to keep it running at a high level of service even as we confront a budget shortfall.”
“Allocating the special transit fund to SEPTA is not a permanent solution,” Shapiro said. “But it is a short‑term lifeline that can keep the agency viable while we work on a longer‑term strategy that balances fiscal responsibility with the needs of our citizens.”
The Broader Package: A 10‑Year Investment
The special‑fund proposal is part of a broader package that Shapiro and his administration are negotiating with lawmakers. The package, which the governor has described as “a 10‑year plan that ties together transportation, broadband, and environmental priorities,” includes the following key elements:
| Priority | Proposed Allocation | Intended Impact |
|---|---|---|
| SEPTA Operating Support | $120 million (special fund) | Prevent service cuts and maintain commuter reliability |
| Highway Repairs & Expansion | $1.2 billion | Address aging infrastructure and reduce congestion |
| Broadband Expansion | $400 million | Bridge the digital divide in rural counties |
| Electric Vehicle (EV) Infrastructure | $150 million | Support statewide transition to zero‑emission transportation |
| Climate‑Resilient Projects | $300 million | Protect infrastructure from extreme weather events |
The package also includes a “transit‑friendly” tax break for small businesses that provide jobs in the transportation sector and a “public‑private partnership” framework that encourages state investment in private transit projects.
Shapiro’s administration is lobbying for the package to be included in the upcoming 2026–27 budget. The governor’s spokesperson noted that the package would create a “balanced, forward‑looking plan that secures public transport while also modernizing the state’s transportation infrastructure.”
Political Landscape and Potential Hurdles
While the governor’s proposal has gained traction among transit advocates, it faces obstacles on both sides of the aisle. In the Republican‑leaning Senate, a group of lawmakers has warned that the use of special fund money for operating expenses could set a dangerous precedent, potentially encouraging future administrations to “crowd out” other critical services.
“The special transit fund is meant for capital projects, not day‑to‑day operations,” said Senator Lisa Baker, a moderate Republican from Bucks County. “Using it to cover operating deficits would undermine the fund’s original purpose.”
On the other hand, Democratic leaders have expressed strong support for the proposal. State Rep. Maya Chandran, chair of the Transportation Committee, called the initiative “a bold step toward protecting one of our state’s most vital services.” The group also emphasized that any short‑term use of the fund should be coupled with a clear long‑term plan to stabilize SEPTA’s finances.
In addition, the federal government has announced a $250‑million infusion of “infrastructure repair” funds that could be directed toward SEPTA’s operating budget. Shapiro’s office is exploring whether that money can be matched or complemented by state special‑fund allocations, effectively “leveraging” federal support to keep the agency afloat.
Next Steps and Stakeholder Involvement
The next legislative session is scheduled to begin in early October, and the governor’s office has set a deadline of September 30 to finalize the package. During a press conference at the Pennsylvania Capitol, Shapiro indicated that he will hold a series of meetings with key stakeholders, including SEPTA officials, transportation unions, and federal representatives, to refine the proposal.
“Stakeholder buy‑in is essential,” Shapiro said. “We need to bring everyone together—transit workers, commuters, business leaders, and the general public—to find a solution that keeps SEPTA operating at a high level of service while respecting the state’s fiscal responsibility.”
What It Means for Pennsylvanians
If the package passes, the immediate benefit will be the continuation of full service on SEPTA’s commuter lines, which carry more than 500,000 riders daily. The service is critical not only for commuters but also for students, healthcare workers, and residents in low‑income areas who rely on affordable transit to reach employment centers.
Beyond the short term, the proposal signals a shift in the state’s transportation strategy. By explicitly linking transit support with broadband expansion and climate resilience, the package attempts to create a holistic approach to modern mobility. In a time of escalating fuel prices, rising operational costs, and a looming climate crisis, such integrated planning could be the key to ensuring Pennsylvania’s transportation system remains robust for generations to come.
In Summary
Governor Josh Shapiro’s willingness to deploy special transit funds represents a crucial, if temporary, lifeline for SEPTA as the agency faces significant budget cuts. The move is embedded within a broader 10‑year transportation and infrastructure package that aims to balance fiscal restraint with investment in public transit, highways, broadband, and environmental resilience. While the proposal enjoys bipartisan support from many transit advocates and Democratic lawmakers, it faces scrutiny from Republicans concerned about precedent and long‑term sustainability. As the state moves into the next budget cycle, the outcome of these negotiations will likely set the tone for Pennsylvania’s transportation policy for the coming decade.
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