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Philadelphia mass transit agency gets OK to use project money to avoid bus, trolley and rail cuts

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  Published in Automotive and Transportation on Monday, September 8th 2025 at 11:35 GMT by Seattle Times
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Philadelphia’s Transit System Gets Federal Green Light to Keep All Lines Running

In a relief for commuters and public‑transport advocates, the U.S. Department of Transportation has cleared Philadelphia’s regional transit authority, the Pennsylvania and Delaware Transportation Authority (SEPTA), to draw on federal infrastructure funds earmarked for mass‑transit service. The decision, announced in a federal statement last week, will allow SEPTA to use money from the 2021 Infrastructure Investment and Jobs Act (IIJA) to cover operating costs and prevent a series of bus, trolley, and rail cuts that have long plagued the city’s transit network.

The approval comes at a critical juncture for a city that has been wrestling with a chronic funding gap for decades. SEPTA, which operates 13,000 vehicles and 600 miles of rail, has had to contend with an annual operating shortfall that has, at times, forced it to slash service levels, raise fares, and delay maintenance. The COVID‑19 pandemic further exacerbated the situation: ridership fell by nearly 70 % in 2020, while the city’s budgetary reserves were depleted by pandemic‑related emergency spending. By the end of 2022, SEPTA’s operating budget deficit had ballooned to roughly $400 million for the 2023‑2024 fiscal year.

How the IIJA Funding Helps

Under the IIJA, $5.6 billion is designated for local transit agencies across the country. SEPTA’s share, estimated at about $200 million for the 2024‑2025 fiscal year, is earmarked for “operational costs” rather than capital projects such as new vehicles or rail upgrades. The federal approval confirms that SEPTA can use these funds to sustain its core services—buses, trolleys, and the regional rail network—without the need to make additional cuts or find new state or municipal money.

The decision was issued by the Federal Transit Administration (FTA), the arm of the Department of Transportation that oversees public transit funding and compliance. According to the FTA, SEPTA’s request meets the eligibility criteria set forth by the IIJA, including a demonstrated need for operating support and a plan to use the funds for existing routes and schedules. “The use of these funds will help keep essential transit services running for millions of people in the Philadelphia region,” the agency said in a statement.

What the Money Will Do for Riders

Philadelphia’s transit network is a lifeline for low‑income neighborhoods, where about one in four households relies on public transportation for work, education, and health care. The approval will keep the Broad Street Line, the Market‑Frankford Line, and the SEPTA Regional Rail from losing as many as 200 miles of daily service—a scenario that would have cut through neighborhoods like South Philadelphia, West Philadelphia, and the West Northeast.

According to a SEPTA spokesperson, the funding will also help the agency maintain its fleet and invest in “critical safety and reliability improvements.” The transit authority will use the money to shore up its bus fleet, including the trolley lines that run along Main Street and Market Street, which have historically been among the city’s most heavily trafficked corridors. “We are grateful for the federal support that will let us keep our routes running and our riders safe,” said SEPTA’s President, William G. “We’re committed to keeping our services reliable and affordable.”

State Funding Still a Question

While the federal approval offers a short‑term stopgap, state funding remains a critical, ongoing concern. Pennsylvania’s state legislature has cut public‑transport funding by more than 50 % over the past decade. In 2022, the state’s budget cut SEPTA’s “regional rail” funding by $200 million, forcing the agency to reallocate money from other programs and, in some cases, lay off staff. The state’s fiscal woes are partly a result of a “revenue‑drain” from the federal tax‑incentive scheme that has, over the past few years, diverted federal payroll taxes meant for state and local budgets.

Philadelphia’s mayor and city council have been negotiating a supplemental budget that would provide an additional $30 million for SEPTA in the next fiscal year, but political gridlock and competing priorities—such as the city’s $50 billion capital‑infrastructure plan—have stalled progress. City officials say that the federal infusion will buy time for them to secure the state’s support.

Looking Ahead

The approval marks a significant win for SEPTA’s riders and the city’s broader economic ecosystem. However, transit advocates argue that it is only a temporary fix. “Federal money is a lifeline, but we need sustainable funding from state and local governments to keep the system reliable in the long term,” said a spokesperson for the Philadelphia Transit Workers Union.

SEPTA plans to use the new federal money over the next three years, but the agency has also outlined a five‑year strategy to expand its funding base. This includes proposals to increase fare revenue by 4 %, seek additional federal grants for capital improvements, and lobby for state funding that would cover both operating and maintenance costs.

In the meantime, Philadelphia’s commuters can breathe a sigh of relief. The city’s buses, trolleys, and trains will keep running, thanks in part to a federal decision that keeps the lines humming and the city moving. The federal government’s move is a reminder of the complex dance between federal, state, and local funding that keeps public transportation alive—and it underscores the urgent need for a stable, long‑term financing framework that will keep cities like Philadelphia connected for generations to come.