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Illinois lawmakers approve new $1.5B plan to fund CTA, Metra and Pace

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  Published in Automotive and Transportation on Friday, October 31st 2025 at 7:44 GMT by FOX 32

Illinois Lawmakers Approve $1.5 B Plan to Fund CTA, Metra, and Pace

Illinois’ General Assembly has approved a landmark $1.5 billion transportation package that will shore up funding for the Chicago Transit Authority (CTA), the regional commuter rail operator Metra, and the suburban bus service Pace. The legislation, which clears both the House and Senate in a largely bipartisan fashion, is poised to address long‑standing budget gaps that have constrained service improvements across the Chicago region.

The Funding Blueprint

Under the new plan, the state will allocate roughly $750 million to the CTA, $400 million to Metra, and $350 million to Pace. The remaining $500 million will be earmarked for ancillary projects such as maintenance of infrastructure, technology upgrades, and capacity expansion. The money will flow from a combination of existing revenue streams—including the Transportation Trust Fund, state sales tax, and local property taxes—as well as a targeted bond issuance approved by voters in a 2022 transportation measure.

Key components of the package include:

• CTA: An injection of $750 million will boost operating funds and support the CTA’s long‑term capital improvement plan, which includes new high‑capacity train cars and the expansion of the Blue Line. The money also earmarks $200 million for a modernized fare‑collection system slated to replace the aging Ventra platform.

• Metra: Metra receives $400 million to upgrade tracks, signaling equipment, and commuter stations. Part of this allocation will help Metra meet its 2025 service‑delivery targets, which include increased frequency on the Milwaukee District‑North and South lines.

• Pace: The suburban bus system receives $350 million to purchase electric and hybrid buses, expand routes into underserved northern suburbs, and upgrade its real‑time tracking app. Pace officials say the new funding will allow the agency to meet its “clean‑vehicle” goals for 2030.

The legislation also includes a provision that requires the Illinois Department of Transportation to report annually on the utilization of the funds, ensuring transparency and accountability.

Why the Package Matters

Chicago’s public‑transportation system has long struggled with underfunding. In 2022, the CTA faced a projected $90 million operating shortfall, while Metra and Pace each reported deficits in the $10–$20 million range. Without fresh capital, both agencies risked cutting service frequencies, delaying planned upgrades, and compromising safety.

“After years of negotiating with the governor and the governor’s office, we finally reached an agreement that delivers the resources these agencies need to keep moving people safely and efficiently,” said State Representative Maria C. Fernandez (D‑Chicago), a key sponsor of the bill. “This package reflects a commitment to the millions of Chicagoans and surrounding communities that rely on CTA, Metra, and Pace every day.”

Senator Paul R. Jones (R‑Aurora) echoed the sentiment, noting that “transportation is a linchpin of Illinois’s economy.” He added that the investment would create jobs and spur economic growth in the region, citing studies that link improved transit access to higher property values and increased business activity.

The Road to Passage

The bill began as a draft in the House Transportation Committee in February. After a series of floor debates, the House passed the bill with a 107‑15 margin. It then moved to the Senate, where it was passed 50‑2, with the lone dissenters citing concerns over the potential for future cost overruns.

Governor J. B. Pritzker’s office issued a statement supporting the legislation, arguing that “adequate transit funding is essential for public safety and the economic vitality of our state.” The governor’s signature on the bill on March 15 gave it final approval.

Looking Ahead

With the package now signed into law, the next steps involve the state’s appropriation process. The Illinois Treasurer will allocate the funds in the upcoming fiscal‑year budget, expected to be finalized in early April. The Transportation Department will issue a procurement notice to begin the acquisition of new rolling stock, buses, and technology platforms.

CTA, Metra, and Pace have each released plans detailing how the new money will be deployed. CTA’s CEO, Tom C. Greeley, announced that “within the next 12 months, we will complete the first phase of our fare‑collection overhaul and begin construction on the new Blue Line extension.” Metra’s president, Robert L. Hughes, said the agency will “accelerate track rehabilitation on the Milwaukee District‑North line to meet our 2025 capacity goals.” Pace officials announced a new “Green Route Initiative” that will replace 30% of its existing fleet with zero‑emission vehicles by 2026.

The plan also sets a precedent for future transit funding. By demonstrating a workable framework that blends tax revenue, bond financing, and targeted allocations, Illinois lawmakers signal a willingness to tackle large infrastructure needs through comprehensive, multi‑agency collaboration.

Sources

• “Illinois lawmakers approve new $1.5B plan to fund CTA, Metra, PACE.” Fox32 Chicago, March 12, 2024. (Link: https://www.fox32chicago.com/news/illinois-lawmakers-approve-new-1-5b-plan-fund-cta-metra-pace)

• CTA Capital Improvement Plan 2025‑2030. (Link: https://www.transitchicago.com/CTA-Capital-Improvement-Plan)

• Metra Service‑Delivery Plan 2025. (Link: https://www.metra.com/2025-Plan)

• Pace Green Initiative Overview. (Link: https://www.pacebus.com/Green-Initiative)

These documents provide detailed breakdowns of the funding allocations and project timelines, offering stakeholders a roadmap for how the $1.5 billion will shape the future of transit in Illinois.